Hello, For a company with 2 Cr turnover in non-metro (tier 2) city, what percentage as a reward (for the employees) is decent? The reward will be for 1 person in a quarter and the company has 30 employees. Thanks

To calculate the available reward budget, let's assume you're willing to allocate 10% of the company's turnover, which amounts to 20 lakhs. Assuming it's a one-time reward, you can divide the budget among individual employees based on factors such as performance and duration of employment. You can decide what percentage of the budget goes to managers and what percentage goes to employees based on - 1) a commonly used formula - Profit-sharing amount = (Profits X Profit-sharing Percentage) X (Employee Compensation / Total Employee Compensation) 2) Assuming that there are 10 senior roles and 20 junior roles, and you decide to share it equally, divide the 20 lakhs by 30 people. Each person would receive approximately 66,666.67 rupees. 3) If you want to differentiate between managers and employees, you can allocate 1 lakh to each senior role and 50,000 to each junior role. (Simply double the number of senior roles, add it to the total number of employees and divide the total amount by it - 20L/40) This distribution ensures that the senior roles receive a higher reward compared to the junior roles.