• 
  High Variable pay serves some of the following purposes -
  1. It differentiates between different levels of performance. Fixed salary reviews are not very successful due to issues such as the salary at which an employee was hired, role of past performance in enhancing the fixed salary etc. Variable pay is for the current period and hence can differentiate on a short term basis.
  2. High performers want to be rewarded according to their contribution. They also look forward to the degree of differentiation between them and others. This is psychological need and if not met can demotivate a high performer.
  ...See More3. If a variable plan is well managed, high performers see this as fair and transparent.
  If the above is managed well, it can add to the engagement of high performers thereby contributing to retention efforts. Answered by Anuraag Maini , Sr VP & Head Human Resources at DLF Pramerica Life Insurance Company Limited | 08, Aug 2010 04:43 PM

• Higher variable pay is one of the tools of retention but not the sole factor,besides the monetary benefit behavior of boss and work culture and working hours are of paramount importance.Of satisfaction stems from appreciation,compensation and promotion.Create confidence and have faith to move forward as team Answered by Babban Prasad Pandey , DGM(P&A) at Electrosteel Castings Limited | 02, Aug 2010 06:57 PM

• It is a powerful tool when management and HR both evaluate on case to case
  verification Answered by satyanarayana P | 01, Aug 2010 11:12 AM

• Higher variable pay will help for some extent.But retention of good emeployee depends how do you recognise & appreciate their good work.you may please forward your queries to
  akshy909@yahoo.com Answered by Kannan , Head-Operations at WEBB | 30, Jul 2010 09:32 AM

• Yes, it is one of the efffective tool to retain really hard working employees who would find reasonable incentive to remain with the firm/company. Ofcourse there are certain other reasons for higher attririon rate such as personal reasons, work environment not being conducive, better status elsewhere, etc. But if other things remaining equal, better performer would like to be paid more for thier effeciency & effectiveness in job performance. This is possible, if higher variable pay in the form of financial incentives, performance bonuses, etc. is provided to them. Answered by Jagdish Kumar Kanojia | 23, Jul 2010 07:51 PM

• Variable Pay is a good tool to retain the employee if you have the cut off date of payment. But this is not the only retaining tool. Yes if the amount mentioned and paid to employee really differs as per the rating during appraisal then it will be an effective tool.
  Variable pay concept works as a good tool to identify the performer and non performer if it is paired with the KRA / KPI. If the Variable pay is higher, an employee will not just leave the organisation as he / she has got a good jump etc. All work for money to be earned and hence no one will leave their hard earned money with the organisation. Answered by Baiju Sukumaran , Manager HR at Quickstart Global | 23, Jul 2010 11:40 AM

• I surely would say a big NO. A sincere employee doesnot stay to receive the variable pay if he or she gets another good break. Also he will not be constrained to stay back if the organisation provides with a handsome fixed pay na da job profile supporting it Answered by Karthik Rajkumar , Jt. General Manager - Projects at Essar Projects India Limited | 22, Jul 2010 10:28 AM

• This factor alone cannot decide the employee retention. There are various other factors to be taken into consideration.How effective are performance indicators to decide the variable pay is also one of the major factors. My personal experience in my organisation reveals though in short term productivity per employee has been increased but at the same time there was a considerable increase in rate of attrition. You may justify that we are able to sustain the productive employees through this tool but if you further analyse your data considerable chunk of attired employees are productive ones. In long term also aspired candidates who are looking forward to join your organisation will be speculative due to the feedback of ...See More ex-employees who are forcefully attired due to this pay model. Answered by Ashish Jain , National Sourcing Head at Reliance HR Services | 22, Jul 2010 07:50 AM

• May be effective in ST...not in LT Answered by Abhishek Kauhsik , Manager at North Delhi Power Limited | 22, Jul 2010 07:47 AM

• It need not be. This option works well for employees who are into direct selling / business development function. For people in other function, this is one of the tool for deferring the employee pay-out component. Apart from this, other key factors are retention are functional autonomy, role clarity, organisational climate/culture, etc Answered by SRIDHAR R , Consultant at SMB Enablers | 21, Jul 2010 07:16 PM

• Before introducing higher variable pay, please do a study on the applicability and customization according to your business model. You should also keep in mind that assessment of organisational vis a vis personal achievement should be fair and transparent..... I would be interested to have a detail brainstorm on this.
  
  Sukanti Guha Roy
  Manager HR, IFB Agro, 09831214331 Answered by Sukanti Guha Roy , Manager HR at IFB Agro Industries Ltd | 21, Jul 2010 06:09 PM

• If u stick to variable pay than ur job wud always be variable and mental wud be horrible.Get good fixed packageso that u can be steady while negotiating with new employer. Answered by Susaan Singh , TSE,Marketing at United Breweries Ltd(Kingfisher) | 21, Jul 2010 05:37 PM

• Motivation like a higher variable pay induces employee to put best efforts to achieve targets within specified time. Answered by RAMESH KUMAR ANAND , Consultant at Anand Consultant | 21, Jul 2010 02:54 PM

• What happened to my answer submitted 15 mts back pl? Answered by Jayant Joshi | 21, Jul 2010 01:39 PM

• Higher variable pay alone may not be a good employee retention tool.The fixed pay component and the operating environment in the organisation are also important for employee retention.Moreover only the direct selling staff is likely to be the only staff benefitted by the variable pay strategy.......... Answered by Arun Lal , DGM(Retired)-Service-Sales at Otis Elevator Co India Ltd | 21, Jul 2010 01:15 PM

• First of all you should know that what type of variable pay it is ? If it is performance linked Incentive than a question of BAND i.e; Company profile? As a humanbeing, we change the job for better oppertunity (in case on money) and career prospect but after joined the said organisation if a person feels that the work culture / environment is not at all good than immediately he looks for change. So, we should have balance of both payment structure as well as a good organizational environment. setup. Both are to be balanced for good employee retention. In this case higher payscale cannot be the only good employee retention tool. It can be one of the tool but not the only tool. Every things depends upon the person concern but, it ...See More is very much proportionet with work culture, Superior attitude and Pay package. Answered by Soumitro Mukherjee , Chief Manager / Head - HR & Administration at M/s. Tollygunge Club Limited | 20, Jul 2010 10:22 PM

• Depends on the Trust employees have on the performance evaluation process Answered by P.K rao , Executive Director at E-Pioneer Consultants Pvt. Ltd. | 20, Jul 2010 10:06 PM

• No. It is not only the variable pay which attracts the employee.There are other factors which contribute to his continuing in the job. His liking for the job he is doing, the working atmosphere he is in, the team he is in or leading, support from the company, the quality and system he is performing above all corporate social responsibility factor of the organization. Answered by Harish Kumar , CEO at Checkdeals | 20, Jul 2010 07:27 PM

• Variable pay for sales people by way of incentives is benificial for both the employees and the organisation as on one hand it helps the companies retain performers on the other it gives satisfaction to the emplyees that his good work is being properly evaluated and also being awarded.As the performance is very much within the control of the employee there is little left for the employee to grudge,but linking variable pay with performance of the company,where many factors are beyond the control of employees have every chance of creating dis-satisfaction amongst employees who are denied this previlage for no fault of their;thus this move of T.C.S.may not prove that good as thought out. Answered by chandra pathak , secretary at upmsra | 20, Jul 2010 05:46 PM

• This tool is an eye wash for the employees, where in which fetch good return to the employers in terms of profit. So many companies are adopted this to gain out of it rather helping to the needy who are yet to get these returns. Answered by B D S Kumar , Manager - Customer support at Kirloskar Chillers Private Limited | 20, Jul 2010 05:18 PM

• There are several other reasons for an employee quit. Foremost the job satisfaction, challenge in the job, supportive boss/team etc., If you consider the higher vp only tool to retain an employee I would subscribe that it is NOT. Answered by Balamurugan N | 20, Jul 2010 04:01 PM

• Job appreciation and job satisfaction are two main factors to retain an employees in the organisation. Answered by Basudev Dutta , Regional Manager at Expressit Logistics Worldwide Limited | 20, Jul 2010 02:45 PM

• 
  we should have balance of both payment structure as well as a good organizational environment. setup. Both are to be balanced for good employee retention. Only higher payscale cannot be the only good employee retention tool. It can be one of the tool but not the only tool.
  The situation varies for existing employees we should balance the payment at par with the lateral employees recruited. else thj\ee existing employees may feel rejected and demotivated.
  more emphasize should be on existing employees as laterals are recrutied .
  ...See MoreLast and least depends all on the top most heads how the organisation to take up the situtaton.
  A CEO may also put it as employee leave organisation because their superiors are not cable for mentoring the juniors and co-operative enough to take care of them.
  Also if the employee is a new recruit he may have higher expection in the begining of his career monetarily only but over a period of time he will look for better position and his own market value. Answered by Shoaib Sheikh Mumbai , Officer at The Tata Power Company Ltd. | 20, Jul 2010 12:26 PM

• NO Job appreciation and job satisfaction are two main factors to retain an employees in the organisation. Answered by LAJPAT RAI THAKRAL , GENERAL SECRETARY at Bank of India Retirees Association | 20, Jul 2010 12:11 PM

• I believe higher VP is not the only tool, tax free component in the salary, optimum utilization of skills of individual and top of it job satisfaction are the major tools to retain the employees for a longer period. Answered by Kartikeya Verma , General Manager (Geology) at Ispat Industries Limited | 20, Jul 2010 10:48 AM

• desparate time needs desparate methods especially in IT indy.income inqualities is constantly under scanner so at initail stages 4 freshers its good offer n thus maintain bench strength occupied but in long term its quality matters Answered by SANTOSH PAWAR | 20, Jul 2010 10:44 AM

• I am sorry to say 'NO'. Out of 100, only 1 or 2 % people are highly talented and are confident to do miracles in any sort of organisation and can make it shine. Such people only expect a higher variable pay. Rest of the people always select a profit making and prosperous organisation to be safer. Such people always expect a secured salary, irrespective of the organisation's performance. Such people would always prefer higher fixed pay only. Answered by SASIKANTH VEMULAKONDA , CCT at State Bank Of Hyderabad | 20, Jul 2010 09:53 AM

• i am sorry to say: No. Answered by duke tree , commerical manager at investing company | 20, Jul 2010 07:46 AM

• Let us view this issue from ground reality.Few questions to ponder upon.which category of employees we want to retain? All or only star performers?
  In both the situations, higher variable component will not work as effective tool because retaining employees is directly linked with their motivation level. It is well established that money that too not sure is not the only effective tool to motivate and retain the employees.They look for something more. Even The brand organisations are perplexed on the attrition rate in spite of having all best HR practices. One organisation is talking about overhauling HR policy.
  I don't think Higher variable pay will help in retaining people.Higher variable may attract only star performers and ...See More star performers are not only dependent on variable part. Otherwise also they are in high demand in the market..If want to earn more they may switch over to any other option where they get more assured money than variable.
  Co. has to look for something extra than only variable component
  to retain people. because employee apart from money also look for other parameters to stay.
  Anil kaushik, Chief Editor, Business Manager-HR magazine, Alwar Answered by anil kaushik , Owner, Chief Editor at BUSINESS MANAGER-HR Magazine | 20, Jul 2010 07:44 AM

• No i dont think some,when they are recruiting the lateral with 40% to 60 % Hike in come cases 100% as well . if they have given 20% to 30% also employees will retain.
  When there is a shortage of resource they are recruiting people with good hike then after the existing employees are internally feeling what is the difference and they are also moving to other company .
  
  Hence what i feel there should be a market correction in this regards for the people who already completed 3 yrs min in a company so they will be up to market rate .
  
  there will be much resignations at senior levels because they are coming to new org with high package for that 10 % is also huge Answered by krishna kallkuri , Technical lead at Wipro Technologies Ltd | 20, Jul 2010 12:35 AM

• Interesting thought. Depends what are you trying to fix - short or long terms issues OR whos the target audience?
  
  Going by a more pragmatic scenario, I suggest for the mid management positions is not a viable option to explore as the audience is pretty volatile in anyway by its very nature. For senior level position/s this could be a rentention tool specially for those who are planning to look for a more stabel factors.
  
  I know some of you would also like to debate the so called "VARIABLE" factors involved in my answer :)
  
  Cheers! Answered by Anuranjan Gautam , Mgt. Consultant at IBM India Private Limited | 19, Jul 2010 10:51 PM

• High variable pay a good employee retention tool at some extent,there are various things affects to the performance of employee,we have to take these things in to consideration while designing pay scale.
  
  Otherwise it is demativational,higher variable pay high turnover Answered by Vijaykumar Shinde , Manager - HR at Synergyhrs Consultancy | 19, Jul 2010 10:22 PM

• I partially agree to the statement as higher variable pay is not only the tool for retention of employees but it is one of the tool in motivating employees in the organisation. If this tool is clubbed with the other tools prevailing as per the culture of the organisation then the company can become a "people loved" and leader leading with and without title in the hearts of employees. Answered by Manju Choudhary , Consultant-HR at PriceWaterhouseCoopers Pvt. Ltd (PWC ) | 19, Jul 2010 09:58 PM

• Variable tool is a very good tool but not for all sections of employees. When we speak of higher variable pay it inherently involves an element of risk taking ability and confidence of accomplishment in an employee which is not a visible trait in non managerial employees. However this is proven in Japan where the component of variable pay is as high as 70%. To apply it to India particulalrly when it is a developing economy with abundant oportunities may be a risk. Answered by Subramanyam S , C E O at Ascent Consulting Services Private Limited | 19, Jul 2010 08:58 PM

• Yes, definitely a very good employee retention tool as employees will have an urge to excel in their role as it will directly impact the organizations performance - which will benefit them! Answered by shankar raghavan , Head - Sales Training at Virgin Mobile India | 19, Jul 2010 07:35 PM

• I party agree that monetary incentives encourages and motivates an employee to think twice before switching jobs. But that's not enough to retain good talent. A challenging and fulfilling atmosphere, a good boss who understands and cares for his subordinates and importantly an Organization which is people-centric is the one which will stay ahead in these times of frequent job changes and new career options. Answered by r srinivasan , CEO at English Language Hub | 19, Jul 2010 07:01 PM

• Variable pay might be one of the retention tool , but it cannot be termed as a major determining factor. Retaining employees requires both monetary and non-monteary factors. Answered by Lipsa Sahoo | 19, Jul 2010 06:48 PM

• I do not strongly agree with this statement. The other factors like good working environment, culture, other benefits, role & responsibilities also played vital role in employee retention. Answered by Vikram Dhir , Placement Officer at Management Education & Research Institute | 19, Jul 2010 06:31 PM

• Yes it's good tool but basis on which to calculate should be very clear and ageed in advance otherwise at the end of the day employee might feel cheated and leave the organisation for a fixed salary job. Answered by Anup Gulati , Deputy General Manager at Gulf Agency Company | 19, Jul 2010 06:30 PM

• There is no single retention tool which can help in retaining employees alone. So is true with "higher variable pay". It is always a collective effort of various tools and policies. Answered by Sameer Sinha , BDM + Recruitment Team Lead at Confidential | 19, Jul 2010 06:11 PM

• It can be helpful but only to a certain extent, if financial incentives are not added up or clubbed with some developmental (Individual & Professional) incentives, the concept of Variable Pay may very soon loose its power of employee retention. Answered by Roshan Dungdung , Officer HR at NTPC Ltd | 19, Jul 2010 05:51 PM

• Good variable pay is a good employee retention tool , no doubt about it. But a higher variable pay in a bad working condition would not make much of sense. The variable pay would be an important component in a salary structure but retention would only happen if physiological needs of the employees are also cared for . Answered by Sourav Mukherjee , Senior Manager - Admin & Commrcl at Paharpur Cooling Towers Limited | 19, Jul 2010 05:44 PM

• No. However, it depends upon the type of business, the criticality of objectives that are required to be met by the business.
  
  Higher variable cannot be denied. Industry practices do not indicate favourable response to the same.
  
  On the contrary, if we look IT business, this can really work. Need is to implement, execute the right compensation strategy. Answered by Gaurav Madan , Manager -HR at R Systems International Ltd | 19, Jul 2010 05:29 PM

• I have been a strong advocate of Variable Pay. I also believe that there should be no limits when it comes to designing pay for performance. Answered by Ajai Singh , Principal at Shamrock Training Consultants | 19, Jul 2010 05:24 PM

• Variable pay that is related to performace & result oriented.It may calle as "pay at risk".At some extent it plays a good roll in employees retention.It is only one corner of employees retention.So company must have to see other corners of retention stratigy i.e. wether employees are satisfied with thier Job Envoirnment(Job Satisfaction). Answered by Arif Khan , H.R. Executive-Retails at Staples Future | 19, Jul 2010 05:24 PM

• no.
  This highlights the need for a comprehensive comp n ben plan to be drafted keeping in mind business considerations/ individual needs/ etc.
  for eg RSI will shed light on individual needs.
  skill based pay will help in rewarding hot skills.
  etc.
  a good comp n ben structure is like a quadratic equation with as many variables as structurally reqd. Answered by Surya Vrat Rana , HR specialist, at Zamil Industrial, Kingdom of Saudi Arabia | 19, Jul 2010 05:10 PM

• Partly it is OK. But this is not only the tool to retain the talents. Answered by GMK Guru , GM - HR & ADMIN at UNIPRES INDIA PVT LTD | 19, Jul 2010 05:09 PM

• upto my knowledge money plays a secondary role where as job satisfaction and working atmosphere play a major role in retention. off course money is lethal in retention but not as important as JS and WA. Answered by Santhosh Kumar , PMO at IBM India Private Limited | 19, Jul 2010 05:04 PM

• The variable pay is a good tool to retain right talent. But for mediocre who are also required in the system it may not workout. Therefore while developing a performance linked pay(PLP) we have to look in to many aspect. Ina typical manufacturing set up it may be totally a different ball game. Answered by Ganesh Hegde , Group Head- HR at Bharat Silks Group | 19, Jul 2010 05:02 PM

• 'Yes' and 'No'. Monetary compensation is as primary as 'Job satisfaction'. Both go hand in hand. A demotivated employee cannot and will not give you his or her best. Employee loyalty, hardwork and thereby growth is as important. Shared ideas and visions, and not dictatorship is the essence of growth. And, this can happen only with opportunity to part take in sharing ideas and not just huge remunerations. The new generations is thirsting for self growth both professionally and personally and therefore this needs consideration. Answered by IVY D SOUZA , Country Administrator / Communicator at Cargotec Corporation | 19, Jul 2010 04:48 PM

• Yes. Higher variable pay can be one of the ways to retain high performers. However, to retain employees, the Organisation need to provide - opportunities for employee development, transparency/ethical conduct in the system and work-life balance. Social Security schemes could be a key tool for employee retention other than above. Answered by Bharat Chhabra , Manager at North Delhi Power Limited | 19, Jul 2010 04:48 PM

• I believe that variable pay is only a small part of the engagement process. Try Hudson Talent Engagement Solution, based on the Psychological contract, where not only rewards, especially not only financial, are of great importance. in case of questions please write to natalya.berdikyan@hudson.com Answered by Natalya Berdikyan , Talent Management at Belgium | 19, Jul 2010 04:46 PM

• No Answered by Ramakrishna Madabhushi , General Manager - Recruitments at ZCS Consulting Ltd | 19, Jul 2010 04:46 PM

• Pay is one of the factor to retain good employees in a Organization. This is one of the basic need that emploees are seeking for in addition to promotion & career development. A company will be rated in fourth quartile who are capable to fulfil all expectations of the emploees & customers as well. It is vulnerable for any organization to keep a balance. Organization should maintain coherent atmosphere by creating a good HR-IR system without depriving any employees. It is true, all the employees can not perform best. But the Management should find opportunity to develop ones capability. Sometimes higher variable to an employees will create dissatisfaction among others in the group , if not known to others in the group, the ...See More valient reason for paying higher variable. In such cases the employees will loose faith on the Company & adverse situation also may arrise. Answered by PRAKASH KR GHOSH , Management of Secondary Steel Making & Training Proffessional at Tata Steel Ltd | 19, Jul 2010 04:37 PM

• it is the key factor but not only the factor.
  Any employee need timely verbal and non verbal appreciation
  Motivation by word and higher responsibilities.
  himanshu pathak
  Ahmedabad Answered by Himanshu Pathak , AGM(HR) at Torrent Power Ltd | 19, Jul 2010 04:33 PM

• In my opinion, the good employee retention tool must be company security which has been provided to employees, here if any organization does not care for the loyalty & caliber of the employees, for sure the employee may not show their skills in the performance of job, Yes sometime higher variable helps employees to contribute sincerely, but not always, therefore good and motivated employees are the back bone of the business, definitely, they should be protected with the best remunerations and benefits. it is the key point for any business to develop in secured way. Answered by MOHAMMED ALI , Professional Advisor at Saudi Aramco | 19, Jul 2010 04:27 PM

• It can be a useful tool - but only if a company stands by (and up to) its policy on variable compensation. In my experience (especially with global organisations) the variable pay is based on global performance rather than "on the ground". Therefore while the individual's business unit performs to expectations, if global doesn't then the variable pool is cut - meaning that it becomes a useless tool and results in people looking elsewhere. Answered by Bruce Ashman , HR Manager at TBA | 19, Jul 2010 04:21 PM

• As a short term measure if you ask then the answer is yes. But if you look for longterm the compensation and benefits comes only 4th or 5th place as employee retention tools. The first one is Job satisfaction, working environment, supportive boss comes in the top 3 place. Therefore I am of the opinion as a sort term measure it will yield results. In the long term it will hve negative impact. Answered by Ravi Chandiran | 19, Jul 2010 04:21 PM

• No, according to me projects offered to the employeesand the pay structure go hand in hand these days. coz i have come across employees who have good package but are still looking for a change only for the reason that there were not given the projects where their skill sets fit in. Answered by Divya Kumar , Associate HR Recruiter at Wizmatrix consulting pvt. ltd. | 19, Jul 2010 04:19 PM

• A higher variable pay will never be a good motivating factor for retaining an employee. I have been part of so many interviews and sensed general tendency of candidates and it is very clear that they are not keen in annual benefits and more intrested in taking higher take home pay. They are very choosy in selecting companies whoes monthly take home is heigh.
  
  If you consider the IT coverage also there is no benefit taking the annual VPP.
  
  Regards,
  Venu Answered by Venu Gopal , Amara Raja at amara Raja Power Systems Limited | 19, Jul 2010 04:18 PM

• yes Answered by Suhas Joshi , Proprietor at Synergy Inc | 19, Jul 2010 04:15 PM

• It looks like a good retention tool to be used for people who are new to variable pay. However i have had bad experience with Reliance Communication and Reliance Retail. Sometimes you dont get all of it and sometimes therez recession or the company is in losses. Too many variable for not being paid the variable pay. In the end what matters is how much i can take home. I am a No No for it.... Answered by Ramandeep Sidhu , Manager-HR at Reliance Retail Ltd | 19, Jul 2010 04:11 PM

• If the KRA's are defined very clearly and agreed upon yes higher variable pay can be good employee retention tool. Answered by Kalpesh Gandhi , Works Manager at Hitech plast Ltd | 19, Jul 2010 04:11 PM

• Certainly no, because only lucrative pay can't retained a talent. One has to create the employees engagement tools for retaining the best talent such as family picnic, employees stock in company share, CMD on table etc... Answered by Pratap Singh Rajput , Asst. Manager - HRM at Tide Water Oil Co. (India) Ltd. | 19, Jul 2010 04:04 PM

• No, an employee cannot be retained for long if only his financial needs are satisfied. Job satisfaction, Training and Development are also other tools which helps in retention of the employee. Answered by Sneha Saxena , Asst. Professor at EMPI Group of Institutions | 19, Jul 2010 04:00 PM

• I don't think so . Answered by Rajesh Kumar , OWNER at Aayam Consultant | 19, Jul 2010 03:53 PM

• Hi Niharika,
  
  Yes I think all human beings appreciate appreciation. A higher variable will motivate them.
  
  Regards
  
  Shantanu
  Inspiration and Consulting Service
  Noida
  # 9873098900
  Email: inspiration2003@gmail.com Answered by Shantanu Roy Chowdhury , Founder at Inspirations & Consulting Services | 19, Jul 2010 03:53 PM

• In my opinion, A good variable won't be the only solution to retain employees. Companies should be given benefits like Employee Stock Option. The employees who are under performer should be motivted by lucrative incentive schemes like variable pay. Broadly if categorized employees can be put into 3 categories viz, above par performers, On PAR Performers, Below Par performers. The 1st two categories has to be retained hence they should feel a sense of belonging to the organization. Recently TCS's attrition rate has gone to 13.4 % this shows that the employees are not satisfied. It might be a good idea to conduct a survey for the Ex TCS the reason for leaving the organization, I'm sure the reasons stated at the time of Exit ...See More Interview and the one now would be very different.
  This would help them track where are they missing in keeping their employees happy and reduce the attrition. Answered by Aparna Hareesh , Research Executive at Emploi Globale Consulting Private Limited | 19, Jul 2010 03:50 PM

• 
  No, need not necessarily be an important retention tool. The following factors play a more important part in retention of the employee vis-a-vis a higher variable component pay-out.
  
  1. Base package (this is something that is assured)
  ...See More2. On-time rewards and recognitions from his/her superior for the efforts put in by the employee (It can be as simple as a pat on the shoulder or appreciate one's good work in a forum)
  3. Evaluate the skills and construct a career map for employee's progression in the company
  4. Talk to the employee on his aspirations and then chalk out what needs to be done to realize an employee's aspirations.
  
  Note: An individual will not leave the company just for a higher package but a higher package will be the sole factor if nothing mentioned above works out. Answered by Praveen Paritala , Program Manager at Keane India Ltd | 19, Jul 2010 03:46 PM

Comments (1)

• Great!! I agree... Commented by Srikant Parab, Sales Manager at Pantaloon Retail India Ltd | 570 days ago

• Not really. It would, if implemented, appeal to only star performers i.e. 5% or 10% of the workforce, which we normally consider during the normal distribution during appraisal process. What about rest of the employees? They would jump to companies which do not go by this concept. Also, people are more interetsed in their take home monthly salary to meet their commitments and savings.
  
  This concept works in a securities market industry where people are ready to take risk to earn more. Not in industries like IT and others. Answered by Jatin Bharmani , Sr. Manager - HRD at Hungama Digital Media Entertainment Pvt. Ltd. | 19, Jul 2010 03:45 PM

• Not at all. Answered by Abhishek Singh , Asst. Manager 2 at Times Business Solutions Limited ( TBSL ) | 19, Jul 2010 03:45 PM

• Absolutely not. Answered by Sanjay Kumar , Developer at Times Business Solutions Limited ( TBSL ) | 19, Jul 2010 03:44 PM

• It definately improves the performance of a employee with Enthu n aspiration.. Answered by Suresh Ediga , Sr.Specialist - Talent Acquisition at Mentorware | 19, Jul 2010 03:42 PM

• No Answered by Ranadip Deb , HR Manager at Nokia Siemens Networks India | 19, Jul 2010 03:42 PM

• No Answered by Shashikant Tekade , Sr.Excutive - Telent Aquisition at Infogain | 19, Jul 2010 03:39 PM

• no Answered by MItesh Sahiware , Sr Practice Manager Recruitment at GlobalSearch Services | 19, Jul 2010 03:38 PM