Humano

Please wait...

Pay mix


It refers to the value of every element from the compensation package expressed as a percentage from the total compensation value. 



Calculation steps:

  1. choose employee
  2. identify the values for each compensation element received by the employee
  3. calculate the value of the compensation package
  4. express each compensation element value as percentage from the total amount

Relevant dimensions: company, level, job family, department, performance.

The pay mix you offer at company level and at job level will determine the profile of people that you will attract and convert in employees.


Example:

Let's say we have an employee that received last year the following gross amounts:

  1. Basic pay (salary) per month - 1000
  2. Christmas bonus - 1000
  3. Performance bonus - 2000 - twice a year
  4. Sales bonus - 3000 - once a year


We will refer mix to Total cash:

Total cash = (1,000 x 12) + 1,000 + (2,000 x 2) + 3,000 = 20,000

Total cash = 12,000 + 1,000 + 4,000 + 3,000 = 20,000

Calculation:

  • Basic pay = 12,000 / 20,000 = 60%
  • Fixed guaranteed pay = 1,000 / 20,000 = 5%
  • Short term variable pay = (4,000 + 3,000) / 20,000 = 35%


Total cash Pay mix: 60% + 5% + 35%



This content can only be accessed by members with a subscription

Or pick the package that suits you best:

Member

  • More than 40 HR KPI’s explained
  • Limited access to best practices
  • A learning hub that grows
  • Access to our promotions
  • One account


Free Sign up

This package does not offer access to this indicator

Professional

  • More than 200 HR KPI’s explained
  • Full access to best practices
  • Full access to new content
  • Access to our promotions
  • One account
  • 12 months subscription
€73,00 €51,10 All taxes included

Join Now

Corporate

  • More than 200 HR KPI’s explained
  • Full access to best practices
  • Full access to new content
  • Access to our promotions
  • Unlimited accounts
  • 12 months subscription
€182,50 €127,75 All taxes included

Join Now