Please choose one position in a company. As an HR Director, state the process you would...

Please choose one position in a company. As an HR Director, state the process you would take to structure the pay for the postion you chose. Consider all relevant variables, e.g military personnel, bad working conditions, overtime etc. Be as clear as possible in the breakdown of your process.

Expert Solution

Position chosen: Team lead for a BPO backend Team.

As an HR director, I'll focus on the following components of the pay structure of the position.

1. Basic pay: Basic pay is the pay component which is fixed for the employee. It is the pay band which acts as a whole for deciding other components as a percentage such as TA, DA, HRA.

2. House rent allowance: The employee is entitled to get the rent allowance for the house which he is eligible to avail in the city he is working in. HRA is a percentage of basic pay provided by the company as a compensation for not providing the housing facility to the employees

3. Dearness allowance: This is the allowance for the inflation which is prevalent in the country. Inflation is the cause of the yearly increase in goods prices.

4. Traveling allowance: The employee is entitled to travel for work purpose and from 'work to home to work' every day. for this purpose, TA is included in the cost to company.

5. Bonus: This component of the pay is given to the employee on yearly or sometimes half-yearly basis.

6. Variable incentive: This component is given to an employee for the performance he delivers while on the job. An employee who overachieves his targets gets to receive the variable incentives.

Leaves: Every employee is entitled to some monthly, annual and sick leaves which are fully paid by the company. However, any leaves taken above the defined limit is deducted from the salary.

Retirement fund: In every organization, there is some contribution made both by the employee and the employer in the retirement fund. This is a deduction in the monthly salary which the employee recovers either after retirement or leaving the job.

Medical insurance: Many times the insurance is the part of the total pay and its premium is a deduction in the monthly salary of the employee. This is done to ensure the employee against any accident and other healthcare problems.

keosha answered 1 year ago

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