Tuesday, January 22, 2008

Performance and Compensation

Performance & Compensation


Performance evaluation is an on-going activity with the individual as the focus.

Your manager continuously evaluates your job performance. Regular interaction between you and your manager and the continuous feedback should give you a sense of how your manager perceives your performance. However, to avoid haphazard or incomplete evaluation, we conduct formal reviews and appraisals annually. This gives both you and your manager a formal opportunity to discuss, set goals and evaluate performance.

Performance reviews are normally conducted twice a year – an informal appraisal in September and annual appraisal in March. A review may also be conducted in the event of a promotion or change in role and responsibilities. The outcome of these reviews will be used for the annual appraisal, which will be conducted in January every year. Compensation review is also done annually along with the Performance Appraisal once a year.

We believe that it is the employee who is a key player during the review. Hence, it is the employee who initiates the process by doing the self-assessment and indicating his development plan for the next 6 months. Based on the inputs received, the manager conducts the review. During formal review, your manager will consider the following, among others:

*The quality and quantity of work
*Initiative and effort
*Attitude, willingness and continuous improvement
FTD Group believes in maintaining transparency of the process and encourages employees to discuss openly with their managers on these aspects on a continuous basis.

A final evaluation and recommendation will be completed according to the Performance Review Process, designed by the HR Department.

It is our goal to attract, motivate and reward high performers who produce high-quality, innovative and professional work. To achieve these goals, our compensation program attempts to compensate each employee according to their contribution, level and complexity of duties and responsibilities.

Compensation Structure:

The HR assigns each position to a Salary Grade. A range of pay is specified for each grade according to prevailing market pay rate. Adjustments to individual salaries ordinarily are made in terms of a percentage of current salary. Irrespective of the grade, a common compensation structure is followed for all positions. A sample compensation structure adopted by xxxxxx, eligibility and taxability of the components is given below:
· Basic pay 40% of the CTC
· Conveyance Allowance
· HRA 40% of Basic
· Flexible Allowance
· Medical Allowance
· Food Allowance
· Leave Travel Allowance
· Provident Fund 12%
· Gratuity 4.8% on Basic Pay
· Medical Insurance & Personal Accident Insurance
Pay Day:

Salary will be paid on the last working day of every month. Salary will be deposited at the company’s bankers (Citi Banks), and employees are required to open an account with Citibank on joining. Incase the employees have accounts in these banks prior to their joining, they are required to give details of their account numbers to the Accounts department for crediting salary and maintenance of records.

Pay Deduction:

The law requires that xxx make certain deduction from every employee’s compensation towards income taxes and statutory compliances.

If any employee has any questions concerning why deductions are made from the paycheck or how they are calculated, please address the issues to Accounts department.
Pay corrections:

xxx takes all reasonable steps to ensure that employees receive the correct amount of pay in each paycheck and that employees are paid promptly on the scheduled payday. In the unlikely event that there is an error in the amount of pay, the employee should promptly bring the discrepancy to the attention of accounts department, so that correction can be made as quickly as possible.

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