COMPENSATION

• The compensation at Peak Technologies had a 2 tier structure. The

salaries of the newly inducted employees were divided into two parts.
The fixed component comprising of the basic salary and HRA, CCA,
Meal Allowance, Medical, Advance Bonus, Other Allowance and
Retirals. The variable part consisting of Process Based Performance
Pay, PBPP (after completion of compulsory training), Attendance
Incentive and OverTime. The Fixed Component structure was same for
all the employees working at Peak Technologies; however the amount
varied from person to person based on the qualifications and no. of
years of experience.
• Further as part of compensation there was statutory deduction under
Employee PF, Profession tax and Employee State Insurance every
month.
• The salary stack also differed according to the shifts. The day shift
salary was lower by Rs 1250/- per month. The employees were also
entitled to Mediclaim coverage for Rs. 1 lac per annum, Life insurance
coverage of Rs. 3 lacs and Personal accident coverage of Rs. 2 lacs.
The employees were entitled for annual leave after 6 months of
probation.
• The undergraduate working with the other 3 employees was being
paid the least with regards to the Fixed Component. The 2 graduates
although having the same qualification were being paid differently.
Their basic salaries were different from each other. Firstly Rohan had
an engineering degree and secondly Amit had a work experience of
1.5 years. While Rohan was being paid Rs.1500/- more than the
minimum Basic salary, Amit was being paid Rs. 2000/- more than the
minimum although he had a B.Sc. degree. Therefore Amit’s basic
salary was Rs. 500/- more than Rahul’s. The rest of the components in
the Fixed Part of the salary stack were similar for both of them. Pooja,
the Post-graduate by virtue of her qualification was being paid Rs.
3000/- more than the minimum Basic pay although she didn’t have
any prior work experience. Therefore she was earning the maximum
Basic Salary among the 4 inducted employees.
• While working together with each other for a period of more than 6
months, all of them became permanent employees of Peak
 Technologies after their Probationary period of 6 months got over. All
of them were now entitled for Annual leaves consisting of Paid-leaves,
Sick-leaves, Sabbatical-leaves and Maternity leave. All the employees
working at Peak Technologies were very competitive since more than
50% of the salary they got comprised of the Variable component
which primarily contained Process Based Performance Pay. The
employees were given performance pay based on the no. of positive
feedback received from the client side. This was measured by SAT
Score. For each SAT feedback received the employee was awarded a
performance pay of Rs. 200/-. The feedbacks came either as SATs
(Satisfied) or DSATs (Dissatisfied) from the customers based on online
feedback reports.
• The PBPP was also in the form of no. of calls received. The base level
was 20 calls in a shift of 8 hrs. To get call incentives, the no. of calls
received/attended should exceed 20 in a shift. For each extra call
attended Rs. 10/- gets credited in the salary of the employee.
Therefore if the average no. of calls attended in a shift in a month is
30, the Call Incentive (CI) is Rs. 3000/- for the particular month.
• With regards to OverTime the compensation was Rs. 500/- per day.
The required no. of working days in a week was 5. For each extra day
attended at the office the employee is entitled to get Rs. 500/- as Over
Time. The ceiling was however at Rs. 3000/- per month.
• Attendance Incentives (AI) were also given to the employees. For
coming on all the 5 working days every month, an AI of Rs. 2500/- was
given per month (this doesn’t include the days office attended as part
of OverTime). A sum of Rs. 500/- was deducted from the salary for
being absent on a working day.
• Apart from the financial incentives given as part of PBPP, there were
also some non-financial incentives that the employees were entitled
for. Employees with outstanding performance were given Recognition
Based Awards, Gift Certificates, and Merchandise Incentives. All these
non-financial awards were given in the form of “Employee of the
Week” and “Employee of the Month”. Based on the various
performance factors a cumulative score was generated weekly and
monthly for all the employees. The Employee of the Week received
movie tickets and dinner coupons. The Employee of the Month
received Personalized Plaques, Free Mess Service for a 5 day week, T-
Shirts and Jackets, shopping vouchers and his/her photo and story on
the firm’s intranet website.
• As far as Annual Leaves are concerned, the employees were entitled
for these leaves once they became permanent employees of the
company after completing the probation. Further a minimum
attendance of not less than 90% over a period of 3 months was
required to avail the Annual Leaves. The Sick-Leave granted was 5
days in a year, Sabbatical Leave of 8 days in a year and Maternity
Leave of 15 days in a year. Therefore a maximum of 28 Paid leaves
was available to a female employee and a maximum of 13 Paid leaves
to a male employee in a calendar year. This was available for the next
1 year coming after the completion of Probationary period of 6
months. The next consecutive years would increase the number of
Sick-Leaves by 2 days every year while the Sabbatical and Maternity
Leaves were constant throughout.