Analyze the case given below and answer the questions in your own words analytically: SAS Pvt. Ltd is probably the least-well known major software company in India. The company makes statistical analysis software (hence the acronym SAS). And the company is growing very rapidly from 1900 employees five years ago, it now has 5400 employees. But SAS is not your typical software company. It is not your typical ‘anything’ company. At its headquarters, just outside Bangalore, there is a 36,000 square-foot gym for employees. There is a full-length basketball court, pool tables, a private sky-lighted yoga room and workout areas. Outside, there are soccer and cricket fields. Massages are available several times a week and classes are offered in dance and tennis. The company also operates the largest day-care facility in India. To encourage families to eat lunch together, the SAS cafeteria supplies baby seats and high chairs. To encourage families to eat dinner together, the company has a seven-hour work day, five days a week. Unlike many work-obsessive software firms, most SAS employees leave the office by 5pm. Management likes to call its work place culture “relaxed”. The list of employee amenities at SAS goes on and on. Unlimited tea, coffee and juice. One week paid vacation during Diwali. An on-site health clinic staffed with six nurses and two doctors. Zero cost to employees for health insurance. They can put on casual dress every day. Is this any way to run a business? Management thinks so. SAS’s strategy is to make it impossible for people not to do their work. Even though the company provides no stock option plans and salaries no better than the competition, the company has built an unbelievably loyal workforce. Whereas competitors typically have turnover rates above 30 percent, SAS’s rate has never been higher than 5 percent. Management claims that it saves Rs. 75 lakhs a year just in employee replacement-related costs such as recruitment, interviews, moving costs for new hires and lost work time. Just in case any one wonders if the company makes any money, we’ll add the following. SAS is owned by just two people – Rahul Sharma and Deepak Ahuja. They were recently listed as being in the top 100 richest people in India. Questions:
1) List the important facts in the case.
2) Are progressive HR practices like those at SAS, a cause or a result of high profits? Discuss. 3) What possible problems could the management at SAS face (from employees) due to the benefits offered? 4) If you are appointed as the HR manager at SAS, what changes would you recommend in the compensation structure? Compensation Management in Indian corporate &
components of compensation|
The increasing competitiveness of the labour market and turnover of employees had resulted in nightmare in compensation planning. Apart from this, the growing demands of the employees and competitive salaries offered by multinational companies had almost resulted in a compensation war in certain industries.
Therefore, the human resources managers and tax experts have to evolve proper compensation planning for High end and qualified employees. The components of compensation have to be devised in such a way that, it focuses on the growing demands of employees while retaining the competitiveness and profitability of the company.
Industry driven factors:-
There are also certain driven factors that are influencing the compensation planning. The compensation Packages of knowledge workers are different from that of manufacturing sector. The employees working in call centers are compensated differently (vs) employees of technology driven companies. Some notable examples are.,
a) Compensation paid in IT/ITES,
b) Investment banking,
c) Software companies,
d) High-end industries having high technology content like Bio/Nano technology. e) Private research and related fields. |
Components of compensation:-