Hello c&b comnunity friends: we are proposing to introduce variable pay component in the CTC and standardise it across through this and next cycle. What are the recommendations w.r.t %of VP. What approach would one choose 1. Dept/ Role wise 2. Based on Salary ranges 3. other We are a young saas startup and have CSM, Engg, QA, linguists,shared services- hR, fin, IT support. There are no structured level/grades in place a yet.

Variable pay for roles in recruitment, sales, marketing, and customer facing positions is typically higher than variable pay for roles in engineering, technology, QA, and HR. This is because roles in the former category are more directly linked to revenue generation and customer satisfaction, and they often require a higher level of performance stretch. The maximum amount of variable pay for roles in recruitment, sales, marketing, and customer facing positions is typically 30% to 50% of base salary. For roles in engineering, technology, QA, and HR, the maximum amount of variable pay is typically 20% of base salary. As a startup, you may want to consider offering a lower percentage of variable pay for all roles, such as 5% to 10% for engineering, technology, QA, and HR roles, and 10% to 20% for recruitment, sales, marketing, and customer-facing roles. You can also divide the variable pay into two parts: a portion that is paid out monthly or quarterly based on individual and team goals, and a portion that is paid out annually based on the overall business performance and employee performance. for reference you can look at data: companies salaries for freshers SDE (https://leetcode.com/discuss/compensation/2748640/300-company-compensation-for-) consider age factor for the data

Thanks Vinay for your inputs and the link

Can someone help with preparing a Felix benefit structure. & also provide details of popular items which companies are using currently.

I hope this helps. If you have payroll software, they will be having required schema for it. You can have option to make changes yearly once or 6 months once