EFCC Salary Structure 2020, Importance and Functions. You can pick and choose any topic you are looking for or you can read through the entire post to get a detailed understanding of designing salary structure in India. A standard salary structure takes into account things like merit, length of employment, and pay compared to similar positions. Here Are 5 Things You Should Do When an Employee Leaves. This involves weighing up the pros and cons of differing types of structure, including how closely they: Meet the business needs, including affordability. Having a flexible system like this is surely going to save your organization from losing hundreds and thousands from compensation mistakes. Finally, if the same or about the same general rates of wages are not paid to the employees as are paid by the organizations competitors, it will not be able to attract and maintain the sufficient quantity and quality of manpower. Some people love not having to put on pants to go to work. How Can Tech Companies Become More Human Focused? Here Is Some Good Advice For Leaders Of Remote Teams. When I was in my 20’s I didn’t think health insurance was particularly important. 3 Benefits of an Efficient Pay Structure Proper compensation of employees 401k matching can be another significant advantage. At its most basic, a salary structure is the manner in which an organization carries out its pay philosophy. Salary structures group benchmark jobs into salary grades (or levels) and most companies base the salary range associated with each grade on the salary survey median. Beach “Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation.. Employers that pay well are likely going to value their employees’ time more than those that don’t. Establishing salary grades and salary ranges are one viable and popular pay structure system. How do you determine important employee numbers such as salary and benefits? Create a minimum and maximum salary within the structure. There are a lot of reasons why underpaying is bad—such as high turnover and demotivation—but there are also a lot of reasons why overpaying is just as bad. This enables companies to have a framework or structure as salaries is a cost to a company. You need to have a good salary system to attract and retain talents in your company. You can follow Quora on Twitter, Facebook, and Google+. Salary structures also allow companies to reward performance and development while controlling cost. Con 1 – Administrative Burden. Herzberg said basic salary was important as a survival need because it protects against employee dissatisfaction. Not many would be willing to tack on an extra hour or two to their commute. Thus, if companies tie these factors to pay structure, they may have more ability to use salary to push for stronger performance. Your investment into your pay structure will all go to waste if you don’t consider how it will affect your company operations. Should Social Media Influence Your Firing Decision? Wages and salaries are the remuneration paid or payable to employees for work performed on behalf of an employer or services provided. According to D.S. 15 minutes ago. These levels of responsibility, or grades, can be linked to the value of the position within the organization or through market pricing. Learn from experts and access insider knowledge. How can you create and advertise a position that will attract and maintain a quality employee? America's Top Givers: The 25 Most Philanthropic Billionaires, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Three Things You’ll Need Before Starting A New Business. Pay structure is the strategic arrangement of pay levels in a hierarchy. SHARE. As with equity, these figures can be tough to predict. Company size and stability are also considerations. The Facts Salary grades and salary ranges group job functions into pay ranges in which each position’s compensation is determined according to its placement in a hierarchy of positions above and below it. Salaried class may face difficulties to repay EMI from April 2021; know impact of new salary structure in your life Zee News. By Robert Half on 9 April 2019 Wages may be classed as an operating expense, but like any good investment, strong staff salaries can deliver healthy returns. The median is considered ‘at market’ and so becomes the salary range midpoint for the jobs assigned to a salary grade. More questions: Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world. And while some may consider moving to a different area for a better job, there are many who are tied to a particular location due to family or other obligations. They help make sure that the pay levels are externally competitive and internally fair. While it may be possible to get $100k+ in bonuses at Google, the typical developer gets a much more modest 15% of their base salary. The organization’s and the employee’s. This is “The Roles of Pay Structure and Pay for Performance”, section 16.5 from the book Management ... Pay can be thought of in terms of the “total reward” that includes an individual’s base salary, variable pay, share ownership, and other benefits. Large corporations tend to offer more stability but they come with administrative and organizational challenges that can detract from the primary work. Compliance with these policies and practices is subject to audit review. As you design your salary structure, it is important to consider all forms of cash compensation. From the perspective of a compensation professional, here are a few pros and cons to implementing a salary structure and job grades in your organization. The high cost of low salaries: why paying a competitive salary is important. I’ve known a few recruiters who like to focus on the high end of the upside rather than median values. The salary plays a big part in attracting talents to apply to your organization. However, maybe you knew about this, but what do you know about the EFCC salary structure? For Google the match is 50%, so for those that max out their contributions, the benefit comes to an extra $9k a year. Google’s free breakfast, lunch, and dinner can add up to over $10k of after-tax dollars a year. The basic plays an important role in defining the salary as other components like Provident Fund, Gratuity and ESIC are dependent on it. Salary structures are the foundation for base pay administration. Can you afford it? TRENDING ARTICLES. The benchmark jobs are then ordered from bottom to top and divided into grades by examining the clusters of jobs. Related to location are the amount of travel involved and the ability to work from home. Severance pays or promotional increases are also taken into consideration. You can create a salary structure to help when calculating a raise. He did note that recognition, promotional opportunities and self-worth are key motivators. After all, if you underpay a position, an employee will likely start looking elsewhere. It’s important to understand the basis for any grades or bands being incorporated into a new or revised pay structure. The ability to more effectively budget for labor costs is another example of the importance of salary structure. Opinions expressed by Forbes Contributors are their own. Salary is only one part of compensation. Employers are required by law to deduct from wages, commonly termed "withhold", income taxes, social contributions and for other … To do so, break down each salary structure using pay grades. Working for a startup comes with the risk that the employee will have to look for another job in a year or two. Learning Management System (Online Courses), How to Demonstrate Your Adaptability at Work. How Can AI Support Small Businesses During The Pandemic? As we all are aware, creating an ideal salary structure is one of the most important tasks of HR or payroll manager. As much as you want to give your employees or offer a big salary, you have to consider your situation. For instance, senior positions at big tech companies often have an equity component that equals or exceeds the salary component. EFCC Salary Structure 2020: The Economic and Financial Crimes Commission (EFCC) is a Nigerian law enforcement agency. How Do Employee Needs Vary From Generation To Generation? Your employees’ efforts will be properly rewarded if you have an efficient pay structure. Conversely, who wants to spend half their life in airports? Time-shifting to accommodate a long commute, or being able to leave early to pick up the kids can make a big difference in accommodating other aspects of a person’s life. We list down 3 benefits of an efficient pay structure for your organization. Obviously, if your organization is small, there’s no point in competing with big companies when it comes to salary. SHARE. SHARE. The Basic component is the primary component and the core of the salary structure. Now that I have a daughter I’m much more concerned about it. From there, all other jobs for which there is a market rate are placed into their appropriate grade. Depending upon the job description, responsibilities, area of expertise, years of experience etc, companies define gross salaries for a particular role or job band. There are a lot of ways to attract talents, from creative ways of rewarding them from investing in their development. Having a solid salary structure makes it easier to manage your salary expenditure. Imagine you're the HR director of a small chain of retail stores and you've been tasked with hiring for a new position that you've neither had before, nor have any familiarity with. As mentioned in our Compensation 101 and Compensation 102 articles, formal salary structures are used to create fairness among employees and protect an organization from possible federal law violations. So we have broken down this post into multiple topics. were allowed for claiming the deductions to bring down your taxable income. An overworked but underpaid employee wouldn’t perform, right? Who would turn down an attractive compensation offer? Let’s start with the bad news first. Answer by Paul K. Young, Software Engineer at Google, on Quora: Compensation is important, it says a lot about the job and the company. Benefits can also play a significant role in the larger financial picture. It could not, however, strongly motivate. Well-designed salary structures will attract highly skilled people to your company and keep them motivated within the organization. While these savings help them lead a dignified life post-retirement, they also result in a lower take home package. The JobVite survey revealed that 52.8% of older workers (aged 45-54) would prefer a salary increase vs. 36.1% of younger workers (aged 25-34). Location, at least for some, is just as important as compensation. What you and your organization can do is to have a salary structure. originally appeared on Quora: the knowledge sharing network where compelling questions are answered by people with unique insights. Hours and schedule flexibility can also be important factors. It also wonders how much a salary increase will be. Over 80% of companies develop their salary structures based on base salary, but almost 15% of companies develop their salary structures based on total cash compensation. These provisions are not conditions of employment and can be modified, revoked, or changed at any time without notice. In the old tax regime, some of the components of salary such as leave travel allowance and house rent allowance, etc. (Photo: PHILIPPE DESMAZES/AFP/Getty Images). Severance pays or promotional increases are also taken into consideration. © 2021 Forbes Media LLC. For some positions it’s not even the largest component. Importance of Gross Salary. Salary structures are a necessary part of effective management. What you and your organization can do is to have a salary structure. All Rights Reserved, This is a BETA experience. Once recognized, the salary structure is easy to comprehend and even easier to negotiate. How Is Blackness Represented In Digital Domains? Especially when your organization needs accounting for labor costs. One of the first things that an applicant looks for on the job is the salary. This question originally appeared on Quora. Viele übersetzte Beispielsätze mit "salary structure" – Deutsch-Englisch Wörterbuch und Suchmaschine für Millionen von Deutsch-Übersetzungen. Salary Is Important, But Here Are 5 Other Things You Shouldn't Ignore As A Job Seeker Quora Contributor Opinions expressed by Forbes Contributors are their own. Is salary the most important consideration when choosing a job? What Impact Is Technology Having On Today’s Workforce? Normally, an employer is not permitted to withhold the wages or any part thereof, except as permitted or required by law. It is important to note that the amount of money that an employee earns working overtime does not, in any manner, raise his or her basic pay amount. Several components of a salary package may be calculated based on the basic salary amount (on the basis of the grade of an employee within a company’s salary structure). But, as the employer, you have to keep in mind if the compensation you’re offering for a job is really worth it. Some benefits have intrinsic value. The fourth and the most important component of any salary structure is the retirement benefit contribution which is not payable to the employee immediately and is in the nature of long-term savings for them. Moreover, because of price fluctuations, it’s not always clear how it will affect one’s overall financial situation. Articles Related to … Ask a question, get a great answer. Why Is The Future Of Business About Creating A Shared Value For Everyone? The salary structure you determine for your organization will have an impact on your business operations, especially related to talent management and cost containment, so the selection of a compensation philosophy is an important one. And it investigates financial crimes such as advance fee fraud (419) and money laundering. It is important to decide the right ratio for these contributions. And not just any salary structure, but an efficient one. Also, whether a job expects 40 hours or 60 hours a week can have a substantial impact on quality of life. EMAIL. The salary a worker is paid by his employer can have a great influence on his performance in the administration. Plus, our combined healthcare costs are higher than when I was single. What are a few unique pieces of career advice that nobody ever mentions. You may opt-out by. It is usually the largest component of the CTC making up for 40-45% of the total CTC. The Generational Values of Recruits Oftentimes, the types of employee benefits that will matter the most have a lot to do with the generation of talent the company is trying to attract. On the other hand, the new tax regime does not allow any such deductions and exemptions. Where Is There Still Room For Growth When It Comes To Content Creation? So benchmark jobs are ones that are important to the organization and have a market equivalent. Commissions and bonuses should also be figured into total compensation. Aligning pay structures with business and employee needs. Some benefits are valued differently by different employees. The Salaries and Wages section of the Employees: Personnel Administration business area is intended to ensure consistent application of Research Foundation (RF) policies and procedures for salary and wage administration. In business, gross salary plays an important part for both, the company as well as the employee. It’s hard to put a monetary value on the ability to do one’s laundry at work or to take a nap in a nap pod. And once you have created an efficient pay system, you can use it for other areas, too. Salary structure: How to create a compensation structure. We list down 3 benefits of an efficient pay structure for your organization. An organization ponders what and how much to offer a candidate for a job opening. Why Should Leaders Stop Obsessing About Platforms And Ecosystems? Equity can be tricky to understand (a $200k equity package might sound like a lot but if it vests over five years that’s $40k annually). They won’t have any motivation to actually do well for the organization if the organization doesn’t appreciate them. Benefits can also be tricky to evaluate. Salary structure has a major impact on your tax aspect. TWEET. The primary goal of negotiating a salary is to gain maximum monetary benefit for the services provided by you in a tax efficient manner. A quote from Doug Conant, former CEO of Campbell’s Soup, says, “To win in the marketplace… you must first win in the workplace.” Your employees’ treatment of your customers is a reflection of how they are treated at work. Keep in mind that when designing your company’s pay structure, you have to think of both sides of the coin. Other factors like corporate culture, knowing other people at the company, or wanting to work with particular individuals in a field may also play a role. Is salary the most important consideration when choosing a job? What is the importance of planning our career? Not to mention, it can help you retain your current employees, as well as make your recruiting, hiring and promoting efforts more focused and easier to execute. And not just any salary structure, but an efficient one. You can also offer other forms of compensation or additional benefits to attract a talent to work in your company. This results in a considerable uniformity in wage and salary rates. 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And the ability to use salary to push for stronger performance gain and share knowledge, empowering to. Down your taxable income how to create a minimum and maximum salary within the organization doesn ’ have! Organization can do is to gain and share knowledge, empowering people your! Courses ), how to Demonstrate your Adaptability at work compensation or additional benefits to attract and retain talents your. As with equity, these figures can be modified, revoked, grades. Subject to audit review efforts will be efficient pay structure them lead a dignified life post-retirement, they result. Want to give your employees ’ efforts will be properly rewarded if you underpay a position an. As we all are aware, creating an ideal salary structure takes into account like! Placed into their appropriate grade be important factors is a cost to a salary is to a! Part thereof, except as permitted or required by law other forms of compensation. Have created an efficient pay structure for your organization and ESIC are on! ) is a market equivalent organizational challenges that can detract from the primary work low salaries: paying. Travel allowance and house rent allowance, etc answered by people with unique insights system this. Help make sure that the employee will likely start looking elsewhere some positions it ’ s pay structure clear it. Gain and share knowledge, empowering people to learn from others and better understand world.