Variable Pay in Accenture 2023 | Accenture Variable Pay for All Levels | Accenture variable Pay Cycle | Accenture variable Pay Month | How much percentage variable pay in Accenture | 27 percent variable pay in Accenture
Variable Pay in Accenture 2023 | Accenture variable Pay Calculation: Variable pay is the portion of sales compensation that is resolute by employee performance. When employees achieve their goals, variable pay is paid in the form of a bonus, incentive pay, or commission. On the other hand, the base salary is fixed and paid even if the employees achieve their targets. The combination of variable pay and basic pay is called a pay mix. Variable pay is basically employee compensation that changes. Variable pay refers to bonuses, incentives, commissions, and other monetary compensation that depends on employee performance. Here’s everything you need to know about the types of variable pay, advantages, disadvantages, bonuses, and more. Get the latest Private Jobs here
- Variable pay varies from 15% to 18%. It depends only on your rating and current salary. Payments are made twice a year.
- Once that is done, the factor is calculated.
- Accenture has recently increased its differential pay percentage, from 21% for application development senior analysts and 27% for team lead positions.
- ASE has variable pay, it’s 23500 and then it increases depending on performance and appraisal.
What is Accenture Variable Pay?
- Variable pay is often based on two main factors: your own performance and your company’s performance.
- Therefore, most of the programs developed by the companies have target-setting and actual payments based on that combination.
- Variable pay is one of the five main components of total rewards in any organization and is usually a percentage of fixed pay.
- Variable compensation can be communicated up front as an incentive or given after the fact as reinforcement or a bonus.
- Numerous employers compensate employees with variable pay, such as cash, stock, or pay from work.
What are the typical Variable Pay-Outs across different levels?
How has Variable Pay evolved in India?
The concept of variable pay started gaining prominence in the Indian market in the last decade. Typically a Western concept, it has migrated with MNCs, arriving in Asia and other emerging markets. But Indian companies are now catching up with Western countries because the best part of variable pay is performance-linked. Even public sector organizations are now moving towards it, where the percentage of variable pay offered is generally not high. Get the Graduate Jobs here
Who gets Variable Pay?
There is a fair amount of visibility within and between companies when it comes to who gets variable pay and why. Some jobs typically have variable pay. For example, sales roles and leadership roles typically have clear pay linked to specific deliverables. Get the latest Freshers Jobs here
- There are company-driven and employee-based reasons for this.
- The distribution and type of variable pay depend on the organizational level
- Often companies struggle with how far to extend their variable pay program.
- The choice ultimately depends on the company’s culture and budget.
- For companies offering variable pay, this extends all the way to non-exempt employees.
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Types of Variable Pay Plans
- Bonuses
- Gain Sharing
- Profit Sharing
Difference between Fixed Pay and Variable Pay in salary structure?
- Fixed pay is defined as fixed and you will get the same salary as mentioned in the offer letter.
- Your Package= Fixed Pay (X% of Total Package) + Variable Pay (100-X% of Total Package).
So variable pay is part of your salary package. You will get your fixed pay at the end of every month but you will get your variable pay quarterly/semi-annually/yearly (may differ from company to company). Let us understand this with an example. Suppose a company pays variable wages every quarter.
- Suppose your total monthly salary is Rs. 30,000. Out of which you are getting Rs. 25,000 as fixed pay and Rs. 5,000 as variable pay. So you will always get Rs. 25,000 at the end of each month.
- Now let’s suppose that your company announces the percentage of variable pay to be 80%, so you will get 80% of your variable pay which is = Rs. 4,000/-
- Hence at the end of the quarter, you will get: Rs. 4,000 X 3= Rs. 12,000/-
Advantages and Disadvantages of Variable Pay
| Advantages | Disadvantages |
| One of the primary advantages of variable pay is employee retention. | Most companies fail to establish an equalizer in their variable pay. It results in a seemingly high pay package, which turns out very less paid in reality. |
| Variable Pay helps the organization to balance out and equalize the salaries of their employees. | If the criteria for variable pay are not defined accurately, it can result in the improper implementation of the pay structure. |
| Performance-based variable pay helps to reward hard-working employees, thereby motivating them. | An increase in variable pay adds to the cost of the organization. |
| Variable pay allows organizations to tie compensation to revenue and financial performance. | Variable Pay isn’t factored into an employee’s annual compensation, although the amount may be based on the employee’s salary. |
Accenture Variable Pay in Which Month
- Accenture’s Local Variable Pay (LVP) is a fancy name for a bonus payout.
- It is payable twice a year, once in June and again in December
Accenture Variable Pay for Freshers
This is 15% of your standard. Variable pay will be given twice a year based on your performance.
Accenture variable pay for levels 6, 7 | Accenture variable pay for levels 8, 9
- If your career level is 9 – 6, adding the two together, you have a variable component of 18%.
- Now, the variable pay I mentioned above is the maximum amount you are entitled to, but there are some factors that determine the actual percentage.
Accenture variable pay for level 10 | Accenture variable pay for level 11 | Accenture variable pay for level 12
- Accenture, a typical service-based company, has an element of variable pay in its salary structure.
- Variable pay is determined based on your career level/position.
- If your career level is between 12 – 10, both inclusive, you will have a variable component of 15.6%.
- Now, the variable pay I mentioned above is the maximum amount you are entitled to, but there are some factors that determine the actual percentage.
Accenture Variable Pay @ Factors
Profitability of the company, whether the company made a profit or suffered a loss during that particular period, usually 6 months. Your usage in a program, whether you are on the bench or have been in a program for the entire period, i.e. again 6 months. Your last performance appraisal is a key factor in variable pay Once you are able to overcome all the above factors, you will receive 100% of your eligible variable amount. If either of those things doesn’t go well, the percentage can be anywhere from 0 – 80, again inclusive of both.
How much does an average employee earn at Accenture with 15% variable pay?
Rarely does anyone get full variable pay? With the recent change in compensation policies, things have become even worse. For 15.6% of my pay, it is 71,200 divided into two terms, but the total I got was somewhat 27000, which is only 6%. Few others got worse. 71,200 divided into two terms, for 15.6% of my salary, but the total amount I got is roughly 27000, which is only 6%. Others have gotten worse. This is despite having a great performance rating and 104% utilization. The calculation for pay is not transparent and if you ask HR you won’t get any reason.
What percentage of variable pay does an Accenture employee usually get 27%?
- It is about 50%, payable in two installments.
- If your variable salary is 2 lakhs, you will get 35-40k in December and 35-40k in June.
- Variable pay depends on your performance and the company’s quarterly profit.
If Accenture offers fixed compensation of 7 lakhs and variable pay of 0-15.6%, how much can I expect for take-home pay?
Variable depends on many factors like your performance+company performance+project performance+luck+etc. I.E ur use in allsec. If it is 100%, you can get a good variable. If you want to pay the maximum variable, always pay in the WBS. Do BPA with unassigned.
- 7 LPA Fixed + 1 LPA variable = 8 LPA.
- Take home pay = 7/12 = 58K.
- Variable paid half yearly in June and Dec = 50k*
- Any Hot Skill – 1LPA paid Quarterly.
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