How closely is productivity tied to wages in your firm What

How closely is productivity tied to wages in your firm? What factors determine your income level in general?

Solution

In my firm (which is a Fortune Top-5 company) wages comprise 2 parts: Fixed and variable. The fixed component comprises 90% of total compensation, and the variable component is rest 10%. The fixed component doesn\'t depend on employee productivity, but the variable component is a performance related bonus. Below a threshold productivity (which is determined from annual performance review) level, no productivity bonus is paid. Therefore, it\'s possible that an employee gets only 90% of the compensation.

As per my firm\'s compensation structure, my income depends on:

(1) My qualification, which comprises my degree as well as category (brand) of the academic institutions attained.

(2) Any international certifications (like CFA, CIMA etc)

(3) Prior years of experience

(4) Importance of the role (position).