ABOUT THE COMPANY:

There has always been an allegation towards HR departments that they act as cost centers and are
still light years away from developing a strategic focus. HR departments spend as much as 80-
85% of their time in day-to-day employee life cycle activities like HR operations, Exit
Interviews, Compensation Administration, Benefits Administration, Payroll Management,
Compliances, Recruitment Process, Employee Query resolution etc. These activities are
transactional, mundane and do not leave any time for the expected strategic focus and activities
which can add value and ultimately to the company's bottom-line.

Pankaj Bansal and Shelly Singh being seasoned HR professionals and co- founder of this
organization came up with the thought of emphasizing the importance of modern day HR where
the HR role is more strategic and less transactional. PeopleStrong HR Services was formed with
a single minded focus of adding value to HR professionals and to their companies. The company
was started in January 2006 under the aegis of Withya group and they have grown from
strength-to strength during these years.

PeopleStrong HR Services Pvt. Ltd. is a leading HR Outsourcing company specializing in HR

Shared Services, Consulting, Payroll Management and Recruitment solutions, based out of India.

PeopleStrong is venture capital funded Company and its investors include CXOs of top global
companies such as Quatrro, IBM, Aditya Birla Group, Viacom etc. Within two years of its
inception, People Strong was rated as emerging RPO Leaders from Asia by HRO Today
magazine.

Within the initial three years, PeopleStrong has won several marquee clients like Nokia,
Commonwealth Games 2010, L&T, SRF, Maruti-Suzuki, Aditya Birla Financial Services, Tata
Sons, Microsoft, Zapper, Nokia Siemens Network etc.

Even with economy slowing down, through our persistent PeopleStrong has been able to
maintain a healthy growth rate in both its topline and bottomline. The annual turnover of the
company is around 43 crore and the attrition rate is between 12-15%.

The reason why we choose this company is because one of our group member has already
worked with this organization and it was easier for her to get all the details regarding the
compensation structure of this company as other firms were not willing to share their
compensation plans as it a very confidential piece of information.
COMPENSATION STRUCTURE of PEOPLESTRONG

Compensation has become a far more complicated issue than just deciding how much to pay
your employees. Employees also have greater expectations of what should be included in their
compensation packages, and they may demand specific benefits. Costly or not, building a fair
and attractive compensation packages is critical for attracting and retaining employees. The basic
components of a compensation structure are as follows:

As per the discussion with the HR head of PeopleStrong (Mr. Devashish Sharma) we got the
below mentioned details:

 How do they design their compensation structure?

 Compensation structure is designed keeping in mind what other companies in the

same sector are offering for different position this process is called as external
benchmarking.

 They have few forum members (NASSCOM) and they have a tie-up submit HR
and they provide the details of different firms in the same sector and the
compensation that they are offering to their employees at different levels.

 PeopleStrong is an HR outsourcing company specializing in HR shared services

and handles multiple clients so the cost of the project is also an important element
in determining the compensation structure of the employee. For e.g. XYZ co. got
into a contract and outsourced all their HR functions to PeopleStrong for a period
of say 5 years and the cost of the project is around 7 crore for 5 years then based
on this price compensation of an employee is set.

 When it comes to designing a compensation structure it is a joint effort by all the

departments but the main decision is taken by the HR department. Various
departments give the details regarding the role and responsibilities of the position
along with the skills required and based on these requirements the HR personnel
will determine who will get what.
  PeopleStrong have a quarterly meet which is called as QSQT(Quarter se Quarter
tak) in which they announce three best performers for their individual
contribution for the organization and are given vouchers/monetary rewards.

How do they go about the Performance Appraisal Cycle?

 When any employee joins our organization he/she undergoes a probation period
for 6 months. If during this period the employee performs amazingly well then
they are put under the step program for 3 months in which their performance is
closely monitored and if they perform well during this program as well then they
are promoted to the next well The company follows both 180 and 360 degree
level to review the performance of the employee depending on the level at which
the employee is. Lets understand this in detail now:

 At the time of joining manager tells his employees that what is expected out of
them and guides them throughout towards the achievement of the common goal.

 YSE(Year Start exercise): 3 months post joining employees are asked to fill up
the year start exercise in which they do self assessment and this further helps in
determining their KRA’s.

 YEE(Year end exercise/year review exercise): After 6 months again employees

are asked to fill up the year end exercise/year review exercise where they do an
analysis about the difference in their performance like the way they were 3
months post joining and what is the current status of their performance and
submits the same to their supervisor.

 Manager Review: When the probation period gets over the manager has to send
his review report to the HR department that he has shortlisted these many
candidates for the Step up program.
 When the employee undergoes the step up program he/she is evaluated on certain
parameters like: Process Knowledge, Soft Skills, Leadership Skills, willingness
to share process information with other team members, flexibility, attitude
towards work etc. if the employee passes all the criteria then he/she is promoted
to the next level and enjoys a salary hike ranging from 10-30% depending on the
level to which they are promoted and this decision is also taken by the HR
department.
Based on our research we found that the compensation structure is excellent
in the organization and has a major strengths.

Strengths

1. PeopleStrong have a quarterly meet which is called as “Quarter se Quarter tak” in

which they announce 3 best performers for their individual contribution for the
organization and are given vouchers/monetary rewards.

These rewards keep the employees motivated to keep working hard as it gives them
recognition among the people in the organization.

2. The compensation structure is a collective effort between the various departments of

the organization. Though the main decision is taken by HR department , the other
departments are considered and the deceision is based on their requirements.
CONCLUSION:-

Compensation structure is the most important , critical , and confidential piece of

information for any organization.

In our case , one of the group members had worked with an organization (Peoplestrong)
and hence it was not a tough ask to get to know the compensation structure of the
organization and made the organization a first choice for the project.

The actual problem faced by the group was for getting the information for the 2nd firm.
We tried to contact different people from different orgnizations but nothing was fruitful.
The employees of the companies were not ready to disclose the policies as it is against
the Integrity.

After a lot of hardwork we were able to get a contact in Indiamart Intermesh Ltd. and got
to know its compensation structure.

It was a great Learning experience for the group to get to know about the compensation
structure of the different organizations and we also got to know how different
departments also contribute to the compensation structure apart from the HR department.

Also, we came to know how compensation structure can attract/distract the employees ,
and the role it plays in retention of the employee. There are certain
advantages/disadvantages of the of the structure which have been mentioned in the
report.

The major diffrence b/w the 2 organizations lie In their HR practices.