Kanthi D Suresh

Author: Kanthi D Suresh

Posted Date: April 12, 2023


Being in the business of Recruitments, the one term that we get to be asked from almost all employers across international markets that we cater to is ‘CTC’-Cost to Company!

The cost to Company is the salary package of an employee, and is more often than not, the making & breaking parameter for employee selection or rejection.

A great deal of thought goes into drawing up the excel sheet with various components that add up to a CTC, and the negotiations across excel sheets begin with potential candidates, where most HR folks are very well abreast of market pay, take-home packages, competitor pay, tax-friendly deductions, etc etc, going great lengths to convince employees to accept a package, with a euphemistic hope of an ‘increment’, in the near future!!! The focus completely shifting to who wins across the negotiation table on the CTC!

The CTC discussions can boil down to differences, dissuasion, defiance, diffidence, delays, dejections, and ultimately many a times, ‘Rejections’!

But, is such a lop-sided, partisan, narrow perspective, the right way to judge an employee. Why are most of us very clear about investments on real-estate, mutual funds, financial instruments, stock-markets, but tend to get a little fuzzy, when it comes to human-beings??

Is an employee a cost or an investment?

Can not the detailed mathematical sheet of employee CTC, be judged alongside a simple sheet for employee BTC(Benefit to company).

Unless & until, HR does not create a BTC sheet, with clear-cut parameters of measurement, CTC would always remain a bone of contention, and employees would always be measured as a cost and not an investment that can reap huge benefits in future!!!