How are Organisations balancing fixed vs. variable pay to drive employee motivation?
SK The truth is organisations focus on cost management and increase profitability. Recent industry layoffs and restructuring point towards this. Increasingly, organisations seem to be variabalising compensation to as much as possible for managing costs. The shift is quite clear – employee motivation will not be at the cost of profitability and growth; and rightfully so – everything that an organisation does has a cost to it! Having said that, I see that the fixed pay remains at a 40-60% level and the variable pay moving up over some time.
What long-term incentive plans (LTIPs) are proving to be most effective in retaining senior leadership?
SK LITPs, especially ESOPs and RSUs are generally seen as long-term wealth creation tools, which many organisations offer. There could also be a goal achievement linked deferred payment plan, popularly referred to as an “opportunity to earn” to...
