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Human Resources/Variable pay confusion

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Question
Respected Sir,

My query is basically with respect to the demarcation between fixed and variable pay.Often during salary negotiation interviews the HR is keen to know only about one's fixed pay out of total CTC rather than considering variable pay too.They state that the hike according to industry standards will be given on fixed pay and variable would not be considered as that depends on company to company. So is a hike always given on fixed component or on the total CTC? This is because I am presently having two offers in hand both with a near about similar fixed salary but one has a very large variable component than the other which is creating a confusion in my mind as to which offer to accept?

Answer
It is true that fixed pay and variable depends on company to company.The guiding principle is that fixed pay could be to about 60 to 75 percent of the total pay ; variable pay could be based on performance , targets achieved , profitability of the division & so on . It is difficult to help you deicide on which offer is better based on your email .I can help you further incase you can send more details .you are welcome to speak to me if you wish on Monday around 11 am .

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Prof R S S Mani

Expertise

I can answer questions pertaining to Human Resource Management ,particularly in the Indian Context.The specific areas I could tackle include Training,HRD, Human Behaviour At Work ,OD and such

Experience

Prof. R S S Mani has been active as a HRD specialist & Mentor in the areas of Education Management, Organizational Behavior and Career Guidance for over 20 years. He is currently involved in advising several blue-chip companies and business schools in Mumbai & other metros. He is a HRD & Management Strategy expert, associated in value added interventions to many reputed companies in the domains of HRM, Institution Building & Edifying, T&D, Corporate Strategies, OB, OD, and allied faculties. He has been associated in training & consultancy activities with a large no. of corporate entities across the globe from various fields . At present he & his team of committed professionals under the banner of R S S Mani & Associates are actively involved in delivering high quality value added HR services to various organizations He was also a former faculty member of TATA Institute of Social Sciences (TISS) associated with the personnel management department from 1989 1994 & was in-charge of organizing /conducting training programmes for many organizations throughout India. He has been regularly contributing intellectual inputs for various news papers like the Economic Times, The Times of India, The Hindu, and Indian Express and Financial Express. He was on the advisory board (career development) of Institute for Technology & Management (ITM) group of business schools. He was also a founder member of the ITM group of management institutes (from 1991-2001) in Mumbai, Navi Mumbai, Chennai, Bangalore, Warangal, Hyderabad .During his decade long stint with ITM , he took up many path-breaking and revolutionary initiatives in management education & research Prof R S S MANI IS ALSO ON THE ACADEMIC ADVISORY BOARD OF SIES Institute of Management Studies .He was recently bestowed the SAMAJ SHAKTI AWARD for his outstanding contribution to the feild of education . Reach us on 98210-91435 or profrssmani@rediffmail.com

Organizations
PROMOTER & CEO ,R S S MANI & ASSOCIATES Educational Consultant to TISS, SIES & ITM Management Schools Founder of www.keentohelp.blogspot.com

Education/Credentials
MBA in HRD from TISS ,Mumbai .A gold medalist from TISS ..

Awards and Honors
He has been acknowledged by The Times of India for his pioneering work spanning over 20 years in the field of Management Education & also ensuring educational & vocational opportunities for the underprivileged. He is the recipient of the Samaj Shakti Award 2008 & Dharam Bharathi Mission Award 2009 for his outstanding contribution to Education & Community Service for ensuring better educational facilities for the underprivileged. He was also bestowed the Dr P N Singh Foundation Award 2010 for his outstanding contribution to the LEADERS OF TOMORROW project that aims at enhancing educational facilities for the underprivileged. The latest feather in his cap was the Best Teacher Award for Outstanding Contribution to Teaching HRD & Career Counselling & Mentoring presented by the honourable Sheriff of Mumbai Dr Indu Shahani at a well attended function in Mumbai on 5th September 2011

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