#3
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M K Liew
on
11 Aug 2010 02:16 PM
It is always an ideal to have some form of varaible pay which will allow companies to have some of flexibility in their personnel expenses. However, it is not easy to design one that will truly reflect the productivity/profitability of the company. Also, the company need to define clearly the KPIs as well as a well structure performance management process to ensure equitable distribution of varaible pay
#2
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Kenneth KL Tan
on
7 Aug 2010 10:29 PM
In Feb 2010, in a Hewitt survey "Companies Around the World Focus on Rewarding High Performance Through Variable Pay Programs" by M Kanter & M Lucas, reported that " companies continue to allocate a greater portion of their compensation budgets toward variable pay programs that reward and retain high-performing workers".
Hewitt's survey "estimates that more than 87 percent of companies (Asia Pacific) are offering variable pay programs this year. Of those, employers are budgeting 13.0 percent as a percentage of payroll for variable pay in 2010, similar to 2009."
This was based on Hewitt's global compensation survey of more than 6,000 large companies in 46 countries.
According to the study, "similar to other regions, employers in Asia are (also) increasingly using variable pay as a means for attracting and retaining talent and rewarding high-performing workers".
#1
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ho geokchoo
on
6 Aug 2010 11:48 AM
Today businesses operate in a global market. Businesses are now focusing on whether base pay plans are sufficient for compensating employees. What is the latest thinking on the shift from base pay plans to allocating a higher portion of compensation budget towards variable payments? Variable pay programs offer more flexibility to companies to allocate limited budgets based on company and individual performance.
I would like to invite CoP Members who are compensation practitioners to share their latest thinking on this flexible compensation trend. I would also like to invite People Managers to join in the discussion as variable payments will increasingly become the norm in compensation.
Cheers,
Geok Choo
HCS
06/08/2010