Organization performance also is factored in while structuring salary increases.
Some organizations also have implemented highly evolved systems, such as the “economic value added” (EVA) framework, ensuring a performance-oriented culture throughout the organization applicable to all employees.
Basic, guaranteed pay has seen a gradual reduction.
Benchmarking against organizations, both nationally and internationally, has become common.
Employee stock options (ESOPs) that were, a few years back, considered as valuable compensation components have ceased to be so given the erratic nature of the stock market and the lock-in periods.
Non-taxable benefits, which increased the net “take-home” of an employee, are now subject to the Fringe Benefits Tax (FBT), and so organizations are forced to take second looks at these components.
Retirement benefits are left to what is mandated by the government. Organizations that were contributing to a superannuation fund for the employee now have to pay the FBT.
Pension benefits and other similar social security benefits are not on the radar screen of compensation experts in India today, but this component could be under significant discussion and speculation in the coming years.