Good morning all,
I have completed my MBA with a specialization in HR. Currently, I am working in a manufacturing company in the SAP HR module. As I am a fresher, I do not have any relevant experience in core HR activities besides my studies. Could anyone please provide me with details on the complete compensation process and its calculations? I am eagerly awaiting your valuable response.
Thanks & Regards,
Gopalakrishnan K.C
From India, Bangalore
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1I have completed my MBA with a specialization in HR. Currently, I am working in a manufacturing company in the SAP HR module. As I am a fresher, I do not have any relevant experience in core HR activities besides my studies. Could anyone please provide me with details on the complete compensation process and its calculations? I am eagerly awaiting your valuable response.
Thanks & Regards,
Gopalakrishnan K.C
From India, Bangalore
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Dear Gopalakrishnan,
You would need to learn the operational part in compensation and not the theory. SAP HR deals with the functional module. Please research the process within the company as anything beyond wouldn't be relevant. What is the salary hike cycle that is being followed? How are salary bands designed? What are the strategies used for disbursing incentives? How does it differ at each level? What are the different benefits offered in the company? How do they increase with each level? Looking forward to brainstorming this with you.
From India, Mumbai
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You would need to learn the operational part in compensation and not the theory. SAP HR deals with the functional module. Please research the process within the company as anything beyond wouldn't be relevant. What is the salary hike cycle that is being followed? How are salary bands designed? What are the strategies used for disbursing incentives? How does it differ at each level? What are the different benefits offered in the company? How do they increase with each level? Looking forward to brainstorming this with you.
From India, Mumbai
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Dear (Cite Contribution),
Thank you for your guidance. I definitely follow your advice within my company. I would like to know what I should do if I want to learn common processes, as they may vary from company to company.
Thank you.
From India, Bangalore
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Thank you for your guidance. I definitely follow your advice within my company. I would like to know what I should do if I want to learn common processes, as they may vary from company to company.
Thank you.
From India, Bangalore
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Hi Gopalakrishnan,
It is a lengthy process to have a full C&B structure. Firstly, you have to understand the company's mission, vision, and brand value/position within the industry to benchmark your positions with peers. In order to benchmark positions, you have to start with Job Analysis (understanding the Key Result Areas of each position - not the person). Then, you have to prepare Job Descriptions listing priorities for all the unique positions in a job family (mentioning the competency requirements for each position, the accountability, financial magnitude), and an Organizational structure. Next, you have to use any third-party job evaluation tools such as the Hay Guide Chart or Mercer methodology to determine the total weight of each position. Once you have the weight, you can easily define your grading system. Furthermore, you have to benchmark your positions with market positions to finalize the grading system for good external equity.
Once you have your grading system, you need to align it with your company's vision in your pay structure to attract talent from the peer group/industry and address internal priorities - such as higher variable payments for senior positions (to achieve targets, generate revenue, and satisfy both the company and the employees simultaneously) and lower variable payments for blue-collar workers, etc. Additionally, you have to manage compensation administration to ensure internal equity. You need to create a correlation chart to compare grades vs. current pay and revenue vs. pay structure movement. I hope you now have a comprehensive understanding of the C&B role.
Thanks
From United Arab Emirates,
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It is a lengthy process to have a full C&B structure. Firstly, you have to understand the company's mission, vision, and brand value/position within the industry to benchmark your positions with peers. In order to benchmark positions, you have to start with Job Analysis (understanding the Key Result Areas of each position - not the person). Then, you have to prepare Job Descriptions listing priorities for all the unique positions in a job family (mentioning the competency requirements for each position, the accountability, financial magnitude), and an Organizational structure. Next, you have to use any third-party job evaluation tools such as the Hay Guide Chart or Mercer methodology to determine the total weight of each position. Once you have the weight, you can easily define your grading system. Furthermore, you have to benchmark your positions with market positions to finalize the grading system for good external equity.
Once you have your grading system, you need to align it with your company's vision in your pay structure to attract talent from the peer group/industry and address internal priorities - such as higher variable payments for senior positions (to achieve targets, generate revenue, and satisfy both the company and the employees simultaneously) and lower variable payments for blue-collar workers, etc. Additionally, you have to manage compensation administration to ensure internal equity. You need to create a correlation chart to compare grades vs. current pay and revenue vs. pay structure movement. I hope you now have a comprehensive understanding of the C&B role.
Thanks
From United Arab Emirates,
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Hi Gopalakrishnan 18.2.2015
SUB: CATEGORISING / GRADING OF EMPLOYEES BASED ON DESIGNATIONS & SALARY
CATEGORISING / GRADING of every Employee’s Designations in an Organisation (especially, Labour Intensive Mfg. Cos. Steel, Cement, Mines etc.,) from Kalassi / Peon to GM/Director (i.e., Un-skilled to Top Management) is an important task of HR Dept. tobe done in such a way that; every employees Qualifications, experiences, salaries are taken into account to avoid complaints of anomaly; later.
Also, it needs tobe done carefully and properly that the HR Dept. staff who have to prepare Annual Increments, Promotions, Fitment, Benefits Orders etc., are able to understand the Categorisation so as to programme it in Computer while making such Increment, Promotion Orders with Salary, Grades for thousands of employees at a stretch in big labour intensive Mfg. Companies.
The Salaries are tobe fixed in such a way that employees in each grade has a particular salary range in a descending order say; from Sr.Manager down to the Un-skilled employees. Such Categorisation helps HR Dept. to group all employees from Un-SK to Top Mngmnt. and it is required for HR, MIS Reports & for filing various Returns. It will also help Interview Panel Members to fix a particular Candidate’s Designation in a Grade matching to his salary & post for the new candidate considering his Qlfn. & exp. vis-à-vis existing employees in the particular Dept. to which the new employee is going to join / recruited; to reduce heart-burning and anomaly problems among existing employees later.
Salary fixation (as in many other cases) depends upon Demand & Supply. A fixed range cannot remain for ever. For ex: a HR Manager with 10 yrs.exp. gets 5 lac/anum in X Co, will shift to Y Co. if Y Co. offer 6 lac & again to Z Co. who may offer 8 lacs. Rarely, people accept new Co. with lesser salary unless, it is close to his native place or his wife or other compelling reasons.
Salary fixation for each employee (based on Qlfcn, exp. & job knowledge) is one aspect whereas fixing his Grade/Category depending upon his Designation is another. The 2nd one i.e., Categorising/ grading/ grouping say 1000 employees into various grades is important to say how many Engrs./Officers, Managers, Mechanics are there at a particular time. State Laws require Filing of Returns to District Industries Centre where Company has to state how many people of the Particular State are given jobs;- Category wise, say Skilled, Supervisor etc., In Karnataka, every Company has to file KANNADIGAS Report to provide statistics of Kannadigas employed in Manpower Returns - Quarterly.
I have attempted to Categorise all employee’s Designations as under (from Un-SK to Top Management in XL format) so that every employees Designations in a Labour Intesive Units like Steel Plants; are covered in Ascending Order; starting with
Un-Skilled,
Semi-Skilled &
Skilled . . (Skilled - 4 Levels like Jr.Optr, Asst.Optr, Optr & Sr.Optr.)
Supervisory (4 Levels - Jr.Supervisr, Asst.Supervsr, Supervisr & Sr.Supervisor)
Officers/Engineers (4 Levels – Jr.Offcr/Jr.Engr, Asst.Ofcr/Engr, Ofcr/Engr, Sr.O/Sr.Engr.)
Managers (7 levels – Jr.Manager, Asst.Mgr, Dy.Mgr, Manager, Sr.Manager, AGM & DGM)
TOP MANAGEMENT (5 Levels – GM, SR.GM, CGM, AVP, VP, CEO, PRESIDENT, DIRECTOR, E.D. & M.D.)
However, the Categorisation, Levels & Designations could be changed as per the Organisations needs & nature of Industries. The position is different in Software & other type of Companies compared to Steel, Cement etc., as stated above.
As Salaries will vary depending upon Qlfcn, Exp. location, type of industry etc., the same can be grouped to fit into appropriate grades. I request respectable Cite HR Senior Members to peruse the above and provide us (in a Statement Form) the types of Categorization / Grading of all Designations available for the benefit of HR Managers who need such List not only for their works but also, for convincing Senior Management whenever Salary, Designations are to be reviewed / re-fixed. Even though there may not be fixed norms for revision or change, it will be helpful if Seniors provide some Formats / Guidelines which will be showing Categorization / Grading of all designations for better presentation as there is a saying; something is better than nothing. This will help many HR Professionals just like Standard quotations / specifications, Comparative statements with rates for products like Car, bike etc.
I request Cite HR Sr. Members to give more information on this important aspect of HR to help HR Managers for categorizing the employees for various HR & MIS Reports and also for Recruitment teams.
Yours sincerely,
• C.Neyim, HR Consultant, Ex:AGM (HR&A), Hiriyur, Chitradurga, Karnataka, S.India.
• Mobile - 9535470460 EMail:
From India, Bangalore
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SUB: CATEGORISING / GRADING OF EMPLOYEES BASED ON DESIGNATIONS & SALARY
CATEGORISING / GRADING of every Employee’s Designations in an Organisation (especially, Labour Intensive Mfg. Cos. Steel, Cement, Mines etc.,) from Kalassi / Peon to GM/Director (i.e., Un-skilled to Top Management) is an important task of HR Dept. tobe done in such a way that; every employees Qualifications, experiences, salaries are taken into account to avoid complaints of anomaly; later.
Also, it needs tobe done carefully and properly that the HR Dept. staff who have to prepare Annual Increments, Promotions, Fitment, Benefits Orders etc., are able to understand the Categorisation so as to programme it in Computer while making such Increment, Promotion Orders with Salary, Grades for thousands of employees at a stretch in big labour intensive Mfg. Companies.
The Salaries are tobe fixed in such a way that employees in each grade has a particular salary range in a descending order say; from Sr.Manager down to the Un-skilled employees. Such Categorisation helps HR Dept. to group all employees from Un-SK to Top Mngmnt. and it is required for HR, MIS Reports & for filing various Returns. It will also help Interview Panel Members to fix a particular Candidate’s Designation in a Grade matching to his salary & post for the new candidate considering his Qlfn. & exp. vis-à-vis existing employees in the particular Dept. to which the new employee is going to join / recruited; to reduce heart-burning and anomaly problems among existing employees later.
Salary fixation (as in many other cases) depends upon Demand & Supply. A fixed range cannot remain for ever. For ex: a HR Manager with 10 yrs.exp. gets 5 lac/anum in X Co, will shift to Y Co. if Y Co. offer 6 lac & again to Z Co. who may offer 8 lacs. Rarely, people accept new Co. with lesser salary unless, it is close to his native place or his wife or other compelling reasons.
Salary fixation for each employee (based on Qlfcn, exp. & job knowledge) is one aspect whereas fixing his Grade/Category depending upon his Designation is another. The 2nd one i.e., Categorising/ grading/ grouping say 1000 employees into various grades is important to say how many Engrs./Officers, Managers, Mechanics are there at a particular time. State Laws require Filing of Returns to District Industries Centre where Company has to state how many people of the Particular State are given jobs;- Category wise, say Skilled, Supervisor etc., In Karnataka, every Company has to file KANNADIGAS Report to provide statistics of Kannadigas employed in Manpower Returns - Quarterly.
I have attempted to Categorise all employee’s Designations as under (from Un-SK to Top Management in XL format) so that every employees Designations in a Labour Intesive Units like Steel Plants; are covered in Ascending Order; starting with
Un-Skilled,
Semi-Skilled &
Skilled . . (Skilled - 4 Levels like Jr.Optr, Asst.Optr, Optr & Sr.Optr.)
Supervisory (4 Levels - Jr.Supervisr, Asst.Supervsr, Supervisr & Sr.Supervisor)
Officers/Engineers (4 Levels – Jr.Offcr/Jr.Engr, Asst.Ofcr/Engr, Ofcr/Engr, Sr.O/Sr.Engr.)
Managers (7 levels – Jr.Manager, Asst.Mgr, Dy.Mgr, Manager, Sr.Manager, AGM & DGM)
TOP MANAGEMENT (5 Levels – GM, SR.GM, CGM, AVP, VP, CEO, PRESIDENT, DIRECTOR, E.D. & M.D.)
However, the Categorisation, Levels & Designations could be changed as per the Organisations needs & nature of Industries. The position is different in Software & other type of Companies compared to Steel, Cement etc., as stated above.
As Salaries will vary depending upon Qlfcn, Exp. location, type of industry etc., the same can be grouped to fit into appropriate grades. I request respectable Cite HR Senior Members to peruse the above and provide us (in a Statement Form) the types of Categorization / Grading of all Designations available for the benefit of HR Managers who need such List not only for their works but also, for convincing Senior Management whenever Salary, Designations are to be reviewed / re-fixed. Even though there may not be fixed norms for revision or change, it will be helpful if Seniors provide some Formats / Guidelines which will be showing Categorization / Grading of all designations for better presentation as there is a saying; something is better than nothing. This will help many HR Professionals just like Standard quotations / specifications, Comparative statements with rates for products like Car, bike etc.
I request Cite HR Sr. Members to give more information on this important aspect of HR to help HR Managers for categorizing the employees for various HR & MIS Reports and also for Recruitment teams.
Yours sincerely,
• C.Neyim, HR Consultant, Ex:AGM (HR&A), Hiriyur, Chitradurga, Karnataka, S.India.
• Mobile - 9535470460 EMail:
From India, Bangalore
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