Theo Rasmussen· People Analytics Lead, Steinbach Industrie
Asked in Global & Mobility ·
Comparing India and Mexico offers in a global range when so much pay sits in allowances?
Our global ranges are expressed as annual base salary. That works badly in two of our largest countries. In India, pay is structured as cost to company, with basic salary often only 40% to 50% of the total and the rest in house rent allowance, special allowance and retirement contributions. In Mexico we have the Christmas bonus, holiday premium, savings fund and food vouchers on top of base.
We are an IT services firm with about 22,000 employees, 9,000 of them in India. Managers comparing a grade 6 in Pune with a grade 6 in Guadalajara and one in Leeds are comparing three different things.
Which pay element do you use as the reference for ranges in each country?
6 helpful · 3 insightful · 2 replies · 411 views · 6 following
Accepted answer· by Samir Gupta
Use the element the local market trades on, and stop trying to make countries comparable to each other through one definition. In India we build ranges on fixed cost to company, which is everything guaranteed including employer retirement contributions, because that is the figure in every offer letter and every survey. In Mexico ranges are on monthly base, and we publish a standard multiplier showing guaranteed annual cash, about 14.6 monthly salaries under our benefits design. For cross-country comparison managers get one extra column, annual guaranteed cash in local currency and in group currency at constant rates. Compa-ratio is always calculated against the local reference element and nothing else.
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