Total Fixed Pay
Assumptions made: 1. In the case we were given 4 positions, we took into consideration the Total Cost to Company (TCC) for each position to decide upon the hierarchy in organization XYZ. The hierarchy is shown in the descending order below:
Job Positions | Total Cost to Company | Head Finance | 3746 | General Manager- Finance | 2251 | Senior Manager Finance & Accounts | 1063 | Manager Finance & Accounts | 0526 |
2. We assumed that the post of the Senior Manager Finance & Accounts is the most coveted and competitive post on comparison with the market as TCC for this position is at 71 percentile. It is only for this post that the organization follows a lead policy while determining TCC while for all the others it follows a matching or lag policy.
Total Fixed Pay: Job Position | Total Fixed Pay | Variable Pay | Head Finance | 18 percentile position | 46 percentile position | General Manager- Finance | 51 percentile position | 14 percentile position | Senior Manager Finance & Accounts | 83 percentile position | 32 percentile position | Manager Finance & Accounts | 47 percentile position | 41 percentile position |
Inference: * It follows a lag policy for Total Fixed Pay with both Head Finance and Manager Finance & Accounts which gets compensated by variable pay which is in the mid quartile range. * It follows a lead policy for Total Fixed Pay with General Manager- Finance and Senior Manager Finance & Accounts. Particularly for Senior Manager Finance & Accounts whose percentile position is way higher than all the other three positions. This states that this particular position is important to the company as the TCC of the same is also high- 71%. * The variable pay for all the job position follows a lag policy. * So what more can be inferred from the above information is that the company has less focus on variable pay, as it falls on the lower side of the paying range. As the variable
Job Positions | Total Cost to Company | Head Finance | 3746 | General Manager- Finance | 2251 | Senior Manager Finance & Accounts | 1063 | Manager Finance & Accounts | 0526 |
2. We assumed that the post of the Senior Manager Finance & Accounts is the most coveted and competitive post on comparison with the market as TCC for this position is at 71 percentile. It is only for this post that the organization follows a lead policy while determining TCC while for all the others it follows a matching or lag policy.
Total Fixed Pay: Job Position | Total Fixed Pay | Variable Pay | Head Finance | 18 percentile position | 46 percentile position | General Manager- Finance | 51 percentile position | 14 percentile position | Senior Manager Finance & Accounts | 83 percentile position | 32 percentile position | Manager Finance & Accounts | 47 percentile position | 41 percentile position |
Inference: * It follows a lag policy for Total Fixed Pay with both Head Finance and Manager Finance & Accounts which gets compensated by variable pay which is in the mid quartile range. * It follows a lead policy for Total Fixed Pay with General Manager- Finance and Senior Manager Finance & Accounts. Particularly for Senior Manager Finance & Accounts whose percentile position is way higher than all the other three positions. This states that this particular position is important to the company as the TCC of the same is also high- 71%. * The variable pay for all the job position follows a lag policy. * So what more can be inferred from the above information is that the company has less focus on variable pay, as it falls on the lower side of the paying range. As the variable