Theo Rasmussen· People Analytics Lead, Steinbach Industrie
Asked in Global & Mobility ·
Our applicant tracking and HR systems hold one figure, annual base salary. That works for the UK and US. In Brazil and the Philippines, where a 13th-month payment is required by law, our recruiters have been quoting monthly salary times 12 while the compensation team's ranges are built on 13.
The result last quarter was four offers in Sao Paulo made about 8% above the intended position in range, and two in Manila that candidates turned down because they compared our 12-month figure with a competitor's 13-month one.
We are a business services company of about 5,500 people. How do others define the annual number in these countries, and what do you hold in the system?
6 helpful · 1 insightful · 2 agree · 3 replies · 222 views · 5 following
Accepted answer· by Maya Chen
We define three terms globally and hold all three: monthly base, annual base (monthly times the number of legally or contractually guaranteed payments in that country, so 13 in the Philippines, 13 in Brazil, 14 in some others), and annual guaranteed cash, which adds fixed allowances. Ranges are built on annual base. Survey data is matched on the same definition. For Brazil be aware the 13th is not the only extra. The holiday bonus of a third of a month's pay is also guaranteed, and we include it in guaranteed cash but not in annual base. A one-page country sheet for recruiters fixed our offer errors within a quarter.
Read in the conversation ↓
Director of Benefits, Tidewater Utilities
Monthly salary is the unit in both countries, so that is what we hold and what goes in the offer letter. The system calculates annual guaranteed cash as monthly times 13 and that is the figure used for ranges and compa-ratio. Recruiters never quote an annual number in those markets.
Total Rewards Manager, Silverline Media
Whatever you choose, show the candidate both figures in the offer: monthly amount and total guaranteed annual. Half the declined offers I have investigated came down to the candidate comparing unlike numbers, exactly as in your Manila cases.
