Hi all,
I have a company of 60 employees in India for last 7 years where, we have various departments. Software development. Testing, Support, Sys Admin and BPO.
We wanted to maintain a common salary structure in the company and the confusion started when the developers felt they deserved to be paid more than a BPO department.
Current Salary Structure:
Table 1: Hike percentage after an year
Grade Hike Percentage
Below Expectations 0
Meets Expectations 10 % - 20%
Exceeds Expectations 21% - 30 %
Outstanding Performance 31% - 40 %
Table 2:Hike percentage after year two and onward
Grade Hike Percentage Additional Components
Below Expectations 0 0
Meets Expectations 10% - 20% 0
Exceeds Expectations 21% - 25% Bonus Amount - 30000
Outstanding Performance 26% - 30% Bonus Amount - 50000
*Bonus – Employees will be eligible for bonus after confirmation or in second year of their service.
In case, we hire experienced person, then that person will fall under “Year 2 and onwards” slab of appraisals.
Considering our company is based in Delhi(cost of living is high), and the BPO team is of 20 employees, what salary structure can you all suggest. I have had a look at various website, trying to understand BPO salary hikes, however, it will not be fair to compare to those standards as my company is very small in size.
From India, Gurgaon
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I have a company of 60 employees in India for last 7 years where, we have various departments. Software development. Testing, Support, Sys Admin and BPO.
We wanted to maintain a common salary structure in the company and the confusion started when the developers felt they deserved to be paid more than a BPO department.
Current Salary Structure:
Table 1: Hike percentage after an year
Grade Hike Percentage
Below Expectations 0
Meets Expectations 10 % - 20%
Exceeds Expectations 21% - 30 %
Outstanding Performance 31% - 40 %
Table 2:Hike percentage after year two and onward
Grade Hike Percentage Additional Components
Below Expectations 0 0
Meets Expectations 10% - 20% 0
Exceeds Expectations 21% - 25% Bonus Amount - 30000
Outstanding Performance 26% - 30% Bonus Amount - 50000
*Bonus – Employees will be eligible for bonus after confirmation or in second year of their service.
In case, we hire experienced person, then that person will fall under “Year 2 and onwards” slab of appraisals.
Considering our company is based in Delhi(cost of living is high), and the BPO team is of 20 employees, what salary structure can you all suggest. I have had a look at various website, trying to understand BPO salary hikes, however, it will not be fair to compare to those standards as my company is very small in size.
From India, Gurgaon
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Hi Palvee,
First thing is you need to be a good people manager :) And yes, there is always this compensation comparison between employees in any company. Basically, I feel that people join BPOs because they believe there is good pay in that sector, and it all depends. There are companies that provide excellent salaries to development personnel, and there are also companies that offer salaries less than the market rate to their employees.
You haven't mentioned what technologies your development team works on and what kind of BPO you operate. If that is mentioned, maybe it would be easier to get more appropriate answers. Managing people was never easy :) I hope you will get the exact figures for your questions from our fellow users. All the best!
From India, Bangalore
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3First thing is you need to be a good people manager :) And yes, there is always this compensation comparison between employees in any company. Basically, I feel that people join BPOs because they believe there is good pay in that sector, and it all depends. There are companies that provide excellent salaries to development personnel, and there are also companies that offer salaries less than the market rate to their employees.
You haven't mentioned what technologies your development team works on and what kind of BPO you operate. If that is mentioned, maybe it would be easier to get more appropriate answers. Managing people was never easy :) I hope you will get the exact figures for your questions from our fellow users. All the best!
From India, Bangalore
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Hi Palvee,
I believe you are a part of the management team. Just want to take a quick take on the HR department of your company and how strong the team is, in terms of headcount and experience. Hopefully, you will not have a team of more than 3 people.
If you have a strong team, then you shall plan for Compensation Benchmarking, as the percentage you fix is far more than the regular appraisal percentage. I understand that startups/SMEs will have more flexibility than a CMMI level organization. However, the percentage you fix is above the compensation wavelength. If in case the HR team is not very strong in terms of the experience level, then there are agencies who do this CB for different levels. Still, I am not very sure about the costing as that would be a little expensive.
According to reports, the increase across sectors is maximum 12% for fixed and 16% for variable. Exclusively for the IT sector, it is between 8.9% and 13.3%. This is an overall report and not specific according to the category of the organization.
You shall also include Fringe Benefits rather than direct salary. That would always help in terms of periodicity. However, wish you good luck!
From India, Bangalore
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I believe you are a part of the management team. Just want to take a quick take on the HR department of your company and how strong the team is, in terms of headcount and experience. Hopefully, you will not have a team of more than 3 people.
If you have a strong team, then you shall plan for Compensation Benchmarking, as the percentage you fix is far more than the regular appraisal percentage. I understand that startups/SMEs will have more flexibility than a CMMI level organization. However, the percentage you fix is above the compensation wavelength. If in case the HR team is not very strong in terms of the experience level, then there are agencies who do this CB for different levels. Still, I am not very sure about the costing as that would be a little expensive.
According to reports, the increase across sectors is maximum 12% for fixed and 16% for variable. Exclusively for the IT sector, it is between 8.9% and 13.3%. This is an overall report and not specific according to the category of the organization.
You shall also include Fringe Benefits rather than direct salary. That would always help in terms of periodicity. However, wish you good luck!
From India, Bangalore
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Dear Palvee,
Without analyzing your operational costs, including all expenditures and expected profits to be generated, you cannot derive a salary structure. Keep in mind that there will be a performance-based hike every year, in addition to paying a bonus for outstanding employees (optional).
My suggestion is that you kindly do not follow any organization's salary structure. You need to define your own based on financial aspects. You could end up paying more than what you have earned. Due to the cost of living, many companies have started shifting to tier 2 or tier 3 cities. Operation standards remain the same, but expenditures have reduced. There are millions of unemployed individuals in India. Look out for those who are truly in need of a job and are willing to commit for a number of years.
When recruiting employees for your BPO, do not hire postgraduates as their expectations are high. Be very specific during the hiring process. Look out for recruiting talented undergraduate applicants. Develop their skills and try to retain them for a minimum of 2-3 years.
With profound regards,
From India, Chennai
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Without analyzing your operational costs, including all expenditures and expected profits to be generated, you cannot derive a salary structure. Keep in mind that there will be a performance-based hike every year, in addition to paying a bonus for outstanding employees (optional).
My suggestion is that you kindly do not follow any organization's salary structure. You need to define your own based on financial aspects. You could end up paying more than what you have earned. Due to the cost of living, many companies have started shifting to tier 2 or tier 3 cities. Operation standards remain the same, but expenditures have reduced. There are millions of unemployed individuals in India. Look out for those who are truly in need of a job and are willing to commit for a number of years.
When recruiting employees for your BPO, do not hire postgraduates as their expectations are high. Be very specific during the hiring process. Look out for recruiting talented undergraduate applicants. Develop their skills and try to retain them for a minimum of 2-3 years.
With profound regards,
From India, Chennai
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