Design of Variable Pay
As part of the Compensation Strategy, Purple helps create a Performance Linked Variable Pay (Incentive Scheme).
Some of the key questions that need to be answered are:
What are the Behaviours / Performance parameters that the Company wishes to drive through the Incentive Scheme?
Who would be covered under the scheme?
Would there be a weightage factor based on potential to contribute to the identified parameters?
How much would be the component of Incentive in the Total Pay Packet and Total Employee Cost
What would be the maximum and minimum earning potential?
One important aspect continuously emphasized by Purple is to try and ensure that the Receipt Cycle (Revenue) of the Company coincides with the Payout of Incentive.