Why we select a particular company to work for and how compensation’s are decided..

1 Jun

Now that we all know that recession is over and its raining jobs here in India,I thought maybe I can write something about as why people select to work for Top 10 X companies ,what factors your salary is decided on etc etc.The reason I felt I need to write about this is that most people join the companies and later on regret in less than 3 months their decision for some reasons like salary offered is less,company X is offering better salary for the same experience as I have etc, etc.

So what are the factors that makes us to decide as why I need to join company X,some of the factors I can think are,

1.Company X is Top 5 company in India and is also counted in top 500 or 1000 in the world.

2.Company X is always in the front page for all the innovations it does or some magazines rates it as one of the best companies to work for or it bags a multi million dollar deals spanning 10’s of years of work.

3.Company X is too big to Fail.Yes some companies which has 6 digits employee strength are considered as too big to fail. We still get the full package while in sitting in bench.

4.There is plenty of Onsite chances.Its known fact that with onsite we can save couple of dollars/Pounds etc.

5.Social status.This is almost the most important point as why people prefer to work TOP 10 or top 5 list.If you are not in this top 10 list, then you can expect higher rate of interest for the bank loans/getting the girl for your marriage is difficult(Father in law always expects that future son in law should be in company which is shining).This applies for both genders.

6.Working in top 5 OR top10 companies makes our parents feel proud.I have seen many parents telling me proudly that their son works in ‘top 5 company in senior XX Role” etc.I feel really good to see parents are happy.

7.Some people say that working in big companies provide path to explore many other technologies,but how far this is true ,I am not aware.Personally I haven’t seen anyone doing that successfully.So as per my opinion once inside you will see that there are too many COE’s and once tagged to some COE’s its just impossible to come out of it.No one likes to lose the resource to any other COE’s specially when its raining deals.

8. Company X offers excellent pay package loaded with goodies.

Now let us talk about as how salary is decided,

1. Your salary is decided based on what you have drawn in your last job.If your last gross salary is 5 lacs per annum, then this salary is taken into consideration for your next job.If you are asking for 10 lacs/pa then I personally don’t feel any company will give you that rate of hire.Max hire will be around 30 to 40 % in gross.

2.Your skills sets and type of projects you were involved in your last job is taken into consideration.

3. Any certification and rewards which you have taken in your previous job is taken into consideration.

4. Your education is also taken into consideration.Master or Doctorate degree candidates are considered as mature and good hire.

5. Your relevant experiences is taken into consideration.If you have 5 years of experiences and out of these 5 years, you have worked 1 year in QTP and you have applied for QTP Automation lead, then only your 1 year of QTP experience will be taken into consideration.You will paid 4 years of Manual experience salary and 1 year of Automation experience salary.This is all dependent on market conditions and type of company you have applied for.Product and service based companies have their own benchmark figures

6. Your negotiation skills.

7. How fast the company wants to fill the position.Some times critical roles needs to filled in the very short time,so for that reason companies will be generous to offer you the package what you ask.But again it will never be more than 50%.If you get more than that, consider yourself as lucky and also make sure you go through your monthly take home properly.Monthly take home figures maybe not same as you had expected.

8.How many jobs you have changed in the past.More the number of the companies in your profile less the people consider you as reliable.

9. Your role in last job along with your job responsibilities.

Hope this helps people in understanding as how pay structures are decided and this post applies only for people who are in the bracket of 1 to 7 years of experiences.For senior folks ,calculation is very much different and some points gets added and some gets deleted.

I would also like to highlight that this observation is based on my silent research and it may not always be true.

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