Are corporate compensation structures getting simpler?
Five years ago, there were organisations that would give you perquisites for items like linen, cutlery, washing machines, and even club memberships. Compensation was very complicated, given the presence of so many items. The British left and changed their system, but they left behind the institutionalised burra sahib culture of perks, which we continued. In the last two-three years, Hewitt has played a pioneering role in changing the structure of compensation in India. On our part, we have started flushing out all those perquisites. We have simplified them and almost brought them to international standards where there is only cash, a perk, and retirement benefits. How much of this is due to changing tax laws? We encourage companies to become tax-conscious and adopt simplicity in compensation rather than look for ways of providing money to employees in ways that later on may come under scrutiny. There are organisations that dole out more money due to the conservative interpretation of t
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