Understanding Compensation Advisory
Compensation advisory involves the professional design, evaluation, and alignment of an organization’s remuneration structure with its workforce strategy, statutory obligations, and industry benchmarks. It includes structured salary planning, incentive frameworks, and employee benefit administration, ensuring transparency, fairness, and legal compliance.
Purpose and Importance:
- Supports employee motivation, engagement, and retention.
- Enhances the organization’s ability to attract qualified talent.
- Promotes consistency in pay practices across all levels and roles.
- Reduces compliance risks related to labour laws and compensation regulations.
Key Aspects Covered in Our Advisory:
- Salary Structure Design:
Development of fixed and variable pay components, aligned with role levels and organization size. - Incentive and Bonus Planning:
Structuring performance-based incentive systems linked to defined goals and KPIs. - Employee Benefits Structuring:
Advisory on statutory and voluntary benefits, such as insurance, retirement schemes, and leave policies. - Compliance Review:
Verification and alignment with labour laws, including gratuity, provident fund, minimum wage, and bonus provisions. - Market Benchmarking:
Comparative analysis of compensation with industry norms to maintain external competitiveness.
Who May Require Compensation Advisory Services?
Startups and Growing Businesses:
To develop structured, scalable pay systems as the organization expands.
Established Companies:
To periodically review and revise compensation strategies in line with updated laws and workforce requirements
Organizations Undergoing Restructuring or M&A:
To align compensation policies during integration or business restructuring exercises.
Entities Subject to Statutory Audit and Compliance Reviews:
To ensure payroll and compensation processes meet disclosure and audit requirements.
Get in Touch with Us
Compensation Policy Implementation and Periodic Review
- Implementation Support:As part of the compensation structuring process, support is provided in implementing the designed framework. This includes:
- Preparation of policy documents and related records
- Integration of compensation components within existing payroll systems
- Establishment of internal governance measures to ensure clarity and consistency
- Periodic Review Mechanism:Compensation structures are subject to periodic evaluation to maintain their relevance and compliance. These reviews typically account for:
- Modifications in business operations or organizational structure
- Changes in workforce requirements
- Updates to applicable statutory or regulatory provisions
- Approach:The process is based on:
- Objective analysis supported by available data and documentation
- Compliance with relevant labour and tax laws
- Consideration of operational needs and evolving business environments
- Objective:The overall objective is to maintain a compensation framework that is:
- Legally compliant and procedurally sound
- Equitable across roles and designations
- Capable of adapting to changing business or legal contexts
