Inception and To be written off in To be written Annual cost, Annual cost, Annual cost, Annual cost, promotion 3 years, low impact off in 3 years, low impact on low impact on low impact no impact on on IS low impact on IS IS on IS IS IS Take off To be written off in To be written To be written Annual cost, Annual cost, Annual cost, 3 years, reasonable off in 5 years, off in 5 years, low impact on low impact low impact impact on IS reasonable considerable IS on IS on IS impact on IS impact on IS Consolidation I To be written off in To be written Annual cost, Annual cost, Annual cost, Annual cost, 3 years, reasonable off in 5 years, low impact on low impact on low impact very low impact on IS reasonable IS IS on IS impact on IS impact on IS Consolidation II To be written off in Annual cost, To be written To be written To be Annual cost, 3 years, low impact on off in 2-3 off in 2-3 written off in low impact considerable impact IS years, years, 2-3 years, on IS on IS considerable considerable considerable impact on IS impact on IS impact on IS Market leadership Annual cost, very Annual cost, Annual cost, To be written Annual cost, Annual cost, low impact on IS low impact on reasonable off in 2-3 considerable low impact IS impact on IS years, impact on IS on IS considerable impact on IS The CEO, CFO and the CHRO will have to always establish a balance between the wage for short term tangible results and the wage ‘recurring cost’ incurred ‘capital to be treated as a long term investment in human resources as cost’ company’s distinguishing assets. Challenges in making SWP a fool-proof exercise There are few major challenges companies normally face when bringing perfection to SWP. Different companies face them differently based on their priorities, conveniences of the promoters, market conditions etc. An organisation believing in long term, sustainable and all-round growth, views SWP as an important tool for retaining and enhancing the competitiveness of its human resources. The challenges may be narrated as follows. Striking a balance between for and ‘wages yearly measurable results’ ‘wages for long term has always been a challenge. Short term profitability and goals’ long term sustainability should be viewed as complementary and not contradictory. This could be achieved through a pragmatic performance management system. Choosing between the extremes of capitalist structure and socialist structure of wages is also a difficult act of balancing between entrepreneurial reward
Inception and promotion To be written off in 3 years, low impact on IS To be written off in 3 years, low impact on IS Annual cost, low impact on IS Annual cost, low impact on IS Annual cost, low impact on IS Annual cost, no impact on IS Take off To be written off in 3 years, reasonable impact on IS To be written off in 5 years, reasonable impact on IS To be written off in 5 years, considerable impact on IS Annual cost, low impact on IS Annual cost, low impact on IS Annual cost, low impact on IS Consolidation I To be written off in 3 years, reasonable impact on IS To be written off in 5 years, reasonable impact on IS Annual cost, low impact on IS Annual cost, low impact on IS Annual cost, low impact on IS Annual cost, very low impact on IS Consolidation II To be written off in 3 years, considerable impact on IS Annual cost, low impact on IS To be written off in 2-3 years, considerable impact on IS To be written off in 2-3 years, considerable impact on IS To be written off in 2-3 years, considerable impact on IS Annual cost, low impact on IS Market leadership Annual cost, very low impact on IS Annual cost, low impact on IS Annual cost, reasonable impact on IS To be written off in 2-3 years, considerable impact on IS Annual cost, considerable impact on IS Annual cost, low impact on IS The CEO, CFO and the CHRO will have to always establish a balance between the ‘recurring wage cost’ incurred for short term tangible results and the ‘capital wage cost’ to be treated as a long term investment in human resources as company’s distinguishing assets. Challenges in making SWP a fool-proof exercise There are few major challenges companies normally face when bringing perfection to SWP. Different companies face them differently based on their priorities, conveniences of the promoters, market conditions etc. An organisation believing in long term, sustainable and all-round growth, views SWP as an important tool for retaining and enhancing the competitiveness of its human resources. The challenges may be narrated as follows. Striking a balance between ‘wages for yearly measurable results’ and ‘wages for long term goals’ has always been a challenge. Short term profitability and long term sustainability should be viewed as complementary and not contradictory. This could be achieved through a pragmatic performance management system. Choosing between the extremes of capitalist structure and socialist structure of wages is also a difficult act of balancing between entrepreneurial reward
Strategic%20Wage%20Planning%20-%20Paper%20by%20Dr%20%20Girish%20J%20Final.docx