In today's materialistic world, where corporates are finding it hard to retain and find talent, Richard G Payne, regional director, Asia, The Corporate Resource Group, has devised a new strategy in compensation management.

Christened as The 3 Ps and You, Payne's compensation management system is based on a process of realising value by paying for position, performance and that `unique' person. Payne was down from Singapore to conduct a two-day seminar on compensation management in Mumbai recently, in which a consistent system was discussed with topics like compensation planning, position or job grading, salary structures, allowance setting and performance pay system design.

Since staff-related costs can run to almost 30-50 per cent of the total operating costs in many organisations, Payne feels realising value from these costs requires a strategic approach. His compensation strategies are thus designed around linking business objectives and strategies, reflecting culture in your mission, encouraging people and work unit development, maintaining internal equity while accommodating individual needs and recruiting by ensuring external competitiveness.

He believes CRG's system reduces distracting and disruptive fire fighting and crisis management freeing people at all levels to focus energies on building the business and operating profits.

Highlights Payne, ``We offer an integrated HR package linked to the company's business strategy. In effect, we maximise the corporate resources of an organisation. Compensation is a major element of retention. Companies have to identify factors that will help them retain their employees.Organisational analysis is done, whereby a system is designed focussed on how to drive your business based on your values.''

Comprising of several modules, the seminar outlined topics such as using value added analysis in compensation management, where the concept of linking compensation to business strategy through value-added analysis was discussed. Besides techniques to measure, monitor and measure the value added, calculating project total compensation costs and determining the ideal compensation mix were some of the other aspects highlighted.

In the 3 Ps, paying for position involves developing an equitable job grading structure, creating a reference salary structure and leveraging compensation costs with market survey information. Paying for the person entails analysing and paying for market value, developing a total compensation package and designing meaningful benefits programmes. Finally, paying for performance includes designing bonus and incentive plans, shifting recognition from merit increases to variable pay and choosing longer term reward plans for profit sharing, stock plans, etc.

Payne's guidelines for managing compensation are:

* Evaluate the effectiveness of your current compensation practices* Develop administrative guidelines for implementation* Handle the pay consequences of promotions, demotions, re-classifications * Conduct periodic auditsThe Corporate Resources Group started operations in India in April this year by floating a 100 per cent subsidiary. It is an independent human resources information, consulting and training organisation, headquartered in Geneva, Switzerland. With its client list including most of the big infotech companies like Verifone, Lucent Technologies, Ericsson and Siemens, CRG is here to stay in India.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.