A comprehensive overhaul of the compensation and benefits structure to build consistency, role-based equity, and employee-centric reward programs
Time to Read: 4 mins
Background
Thomas Cook India Ltd., with its diverse business verticals and legacy payroll structures, had evolved compensation practices that were inconsistent and fragmented across functions. Redundant allowances, unequal benefits, and outdated salary constructs were affecting internal equity, employee satisfaction, and tax efficiency.
To build a sustainable, competitive, and transparent rewards system, a complete Total Rewards transformation was initiated, anchored on business relevance, job architecture, and employee wellbeing.
Objective
To redesign the Total Rewards framework by aligning compensation with job roles, eliminating redundancies, and introducing tax-efficient, employee-friendly salary components.
Actions Taken
- Compensation Structure Redesign
- Transitioned from business-specific fragmented structures to a centralised job role–based pay architecture.
- Benchmarked compensation internally and externally to ensure competitiveness and alignment with role criticality.
- Benefits Rationalisation
- Eliminated outdated and non-standard benefits that added administrative load but lacked perceived value.
- Introduced flexi-benefit components such as food wallets, LTA, and medical reimbursements, increasing take-home value and tax efficiency.
- Transition Management
- Rolled out a one-time payout plan to offset compensation dips during migration, ensuring employee trust and fairness.
- Communicated changes transparently through FAQs, one-on-ones, and manager toolkits.
- Technology & Process Integration
- Aligned new C&B structures with the PMS and HRIS systems to enable seamless payroll, increments, and reporting.
- Built dashboards for Total Rewards analytics and governance
Results
- 100% migration to the new structure within one performance cycle.
- Improved internal equity and transparency, boosting employee morale and manager ownership.
- Achieved 25% increase in tax-efficient pay components, enhancing take-home value for employees.
- Reduced administrative overhead by eliminating non-value-adding components.
- Positioned Thomas Cook as a progressive and fair employer brand during a competitive talent market phase.
"Transforming rewards wasn’t just about pay, it was about trust, clarity, and creating value for both the business and its people."
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