The Impact of Salary Personalization on Employee Satisfaction and Retention

Salary personalization, also known as individualized or personalized compensation, is a modern approach to employee compensation. It focuses on multiple factors to offer tailored compensation to employees.

Traditionally, it has been a practice of compensation based on factors like performance, experience, market value, and personal needs. A person’s financial goals, lifestyle choices, and choices with their money were kept out of the equation.

Mool challenges the legacy method. 

Our product Vetan has processed CTC across tax brackets. In each case, Vetan has found ways to for maximizing take-home and reducing tax in the same CTC - a relief for both employees and employers.

Intuitive dashboards, automation, customizations, and tax optimization options pave way for the employers to increase employee engagement, satisfaction, and retention.

Let’s look a little more closely!

Considering employee’s say in CTC design

With a cookie-cutter approach to CTC, employee’s individual financial standing, future goals, and lifestyle choices are ignored. 

A 10 Lakh CTC will mean differently to an employee who is single vs an employee who’s married. 

The single employee may limit their preferences to food and travel allowances, while married individuals may want additional allowances for child education and fuel and vehicle maintenance reimbursements, all of which can be included in CTC design.

With Vetan, employers get to make offers that also considers employees’ options and preferences into account.

Increased transparency and fairness

By tailoring compensation packages to individual needs and preferences, organizations can create a more equitable and motivating environment.

Salary personalization encourages an open dialogue between employees and employers fostering trust and transparency. Employees who feel more seen will likely see the compensation system more fair and transparent.

Enhanced retention, lesser attrition

Enhanced retention and reduced attrition are critical for organizational success. They lead to increased productivity, improved morale, and a stronger employer brand.

Fostering a positive work environment with open communication for salary personalization can foster a sense of loyalty and commitment, leading to lower turnover rates and retain top talent.

Supporting career breaks for women

As per LinkedIn’s WorkForce Report, 38% Indian women list a career break for parenting compared to 9% men.

Amidst many comments, the suggestion are for flexible work options like remote and hybrid and structured returnship programs. Personalized compensation plans may help women with building confidence and aid in returning to work. 

Reduced burden, increased efficiency 

Automated systems can process compensation data much faster than manual methods, allowing for quicker and more accurate calculations and payouts.

Vetan applies consistent calculation rules and formulas to employee compensation, eliminating the potential for human error and inconsistencies, and significantly reduces administrative burdens.

To conclude...

Salary personalization can significantly boost trust, satisfaction and retention.

Mool's Vetan is meticulously developed to factor in all essential aspects of offering a personalized compensation, including tax regulations while covering various situations. The platform delivers an intuitive user experience, similar to popular HRMS software, facilitating smooth onboarding and ease of use.

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