Answer Posted / vishwas bhide
The most important factors to be considered while finalising "Compensation Structure" are -
1. Must be in line with 'Industry - cum Region' comparison
2. Employer's capacity to pay ( Profitability of the company)
3. Demand and supply situation of particular 'skill'
4. Location of the company ( General standard of living )
5. Some part must be linked with linked with Performance
6. Rewards for good achievement ( at Individual & Company level)
7. So9me part taking care of 'Inflation' ( concept of D. A. )
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