Cost-To-Company Conversion/Package Structuring
The prevalence of using the Cost-to-Company (CTC) Package Structure has increased dramatically over the past years, and conversions to this pay approach are becoming increasingly attractive. There are various reasons for this, but the most common include the alignment of staff remuneration with best practice, limitation of liability, offering staff flexibility in their pay choices, all whilst serving to attract and retain superior talent. If implemented correctly, it would benefit its employees without necessarily increasing costs, thereby contributing to retaining your key staff.
Quite often employees require different elements of pay at various stages within their life (e.g. younger employees may prefer a higher net pay, whereas employees who are closer to retirement may require higher contributions towards their pension scheme). By implementing a Cost-to-Company (CTC) approach, organisations are able to offer all employees enough flexibility to adjust their remuneration to suit their lifestyle.