Compensation mgmt: New HR buzzword
Compensation management co-sourcing is what corporates and HR consulting firms are partnering for.
By Amanpreet Singh, TNN |
NEW DELHI: Plain vanilla HR outsourcing is passe. Compensation management co-sourcing is what corporates and HR consulting firms are partnering for.
Compensation management is a complex, non-transactional process, which includes decisions regarding benefits and variable pay. HR consultancies like Mercer armed with compensation experts are looking at strategic partnerships with companies during the peak compensation cycle.
Compensation analysts are a difficult breed for companies to retain, while HR firms like Mercer train and groom them as an integral part of the firm.
Come pay-time, companies seek out these firms to evaluate individual benefits and also bring them at par with external environs such as competition, geography and industry growth rate. “There is a trend of strategic partnerships in higher value HR functions as they are too integral to outsource,” says Steve Brink, human capital product solutions and global partner, Mercer HR Consulting.
Non-core HR functions such as recruitment, payroll administration, HR management, and risk management are the typical functions that companies are hampered by due to shortage of HR professional outsourcing.
Industry estimates peg the HR outsourcing market in India at $2bn with companies preferring to only outsource low-end and transactional processes.
Meanwhile, Mercer is betting big in India with a research centre in Bangalore, which concentrates on quality assurance, executive remuneration research group. The Bangalore centre also employs Phds, economists and MBAs who discern global trends with regards to compensation.
Mercer is also looking at ramping up its Noida operations centre from 20 currently to 60 people by ’07-end. The centre will focus on compensation surveys and management. Currently, Mercer employs 650 people in 46 countries who work exclusively on compensation.
HR is becoming the big focus for companies as they increasingly realise that the only competitive advantage that a firm has is its people. Most companies are bifurcating HR into administration and people.
So while the administration is looked after by a separate head, most companies employ a chief people officer who is more integral to the company.
Compensation management is a complex, non-transactional process, which includes decisions regarding benefits and variable pay. HR consultancies like Mercer armed with compensation experts are looking at strategic partnerships with companies during the peak compensation cycle.
Compensation analysts are a difficult breed for companies to retain, while HR firms like Mercer train and groom them as an integral part of the firm.
Come pay-time, companies seek out these firms to evaluate individual benefits and also bring them at par with external environs such as competition, geography and industry growth rate. “There is a trend of strategic partnerships in higher value HR functions as they are too integral to outsource,” says Steve Brink, human capital product solutions and global partner, Mercer HR Consulting.
Non-core HR functions such as recruitment, payroll administration, HR management, and risk management are the typical functions that companies are hampered by due to shortage of HR professional outsourcing.
Industry estimates peg the HR outsourcing market in India at $2bn with companies preferring to only outsource low-end and transactional processes.
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Meanwhile, Mercer is betting big in India with a research centre in Bangalore, which concentrates on quality assurance, executive remuneration research group. The Bangalore centre also employs Phds, economists and MBAs who discern global trends with regards to compensation.
Mercer is also looking at ramping up its Noida operations centre from 20 currently to 60 people by ’07-end. The centre will focus on compensation surveys and management. Currently, Mercer employs 650 people in 46 countries who work exclusively on compensation.
HR is becoming the big focus for companies as they increasingly realise that the only competitive advantage that a firm has is its people. Most companies are bifurcating HR into administration and people.
So while the administration is looked after by a separate head, most companies employ a chief people officer who is more integral to the company.
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