I am working in a tyre industry with around 1000 employees working in the company with the union. We completed 2 settlements with 9 categories with a common variation of 1250 and next with 1000 variation for each category but now we are trying for service weightage for the coming settlement and we are confused about the calculation plz explain how to calculate service weightage from 1 to 14 years experience... kindly explain and sort my issues.
From India, Chennai
From India, Chennai
The service weightage has not legal procedure to be followed but it is purely an arrangement between the employer and the employees. For example, if you fix a service weightage of Rs 50 for a service beyond 10 years (covering those having more than 10 years and upto 14 years), a service weightage of Rs 35 for a service of 5 years and 10 years and Rs 20 for those with a service of three years and upto 5 years, those with respective service will earn the amounts added to their basic salary. It will be after adding these service weightages that basic salary will be fitted in the pay scales. Therefore, the chances of an employee getting the next level of the scale is also available. Fixation will, however, depend upon the settlement. I cannot comment further on it without studying the salary structure your organisation is following right now. You can also refer to the similar settlements done in Public Sector Units.
From India, Kannur
4248From India, Kannur
Hi Saiprasad
Calculating service weight-age for settlement in the context of employment typically involves assigning a certain value or weight to each year of service to determine the overall compensation for an employee based on their tenure. The idea is to recognize and reward employees for their years of dedicated service to the company.
Here is a simplified example of how you might calculate service weight-age:
Determine the Weight-age Scale:
Define a scale that assigns a weight to each year of service. This could be a linear scale where each year is assigned a fixed weight, or you may choose to give higher weights for later years to emphasize long-term service.
Assign Weights to Each Year:
For example, you might decide on a linear scale where each year contributes a certain amount to the service weight-age. Let's say you decide on a scale where the first year contributes 1 point, the second year contributes 2 points, and so on.
Calculate Total Service Weight-age:
For each employee, calculate the total service weight-age based on their years of experience. Add up the points or weights for each year of service.
Example:
An employee with 5 years of experience would have a total service weight age of 1 + 2 + 3 + 4 + 5 = 15 points.
Incorporate into Compensation:
Once you have the total service weight-age for each employee, incorporate it into the settlement calculation. This might involve multiplying the total service weight age by a certain factor to determine the additional compensation for the employee.
Discuss and Negotiate:
Before finalizing the settlement, it's important to discuss and negotiate the service weight-age with the union representatives and employees. Transparency and clear communication are key to ensuring that the process is fair and understood by all parties.
Hence, the exact calculation method and the scale of service weight-age can vary based on the agreement between the company and the union. It's crucial to involve relevant stakeholders, such as HR professionals and union representatives, in the decision-making process and to adhere to any legal or contractual requirements in your jurisdiction.
Thanks
From India, Bangalore
Calculating service weight-age for settlement in the context of employment typically involves assigning a certain value or weight to each year of service to determine the overall compensation for an employee based on their tenure. The idea is to recognize and reward employees for their years of dedicated service to the company.
Here is a simplified example of how you might calculate service weight-age:
Determine the Weight-age Scale:
Define a scale that assigns a weight to each year of service. This could be a linear scale where each year is assigned a fixed weight, or you may choose to give higher weights for later years to emphasize long-term service.
Assign Weights to Each Year:
For example, you might decide on a linear scale where each year contributes a certain amount to the service weight-age. Let's say you decide on a scale where the first year contributes 1 point, the second year contributes 2 points, and so on.
Calculate Total Service Weight-age:
For each employee, calculate the total service weight-age based on their years of experience. Add up the points or weights for each year of service.
Example:
An employee with 5 years of experience would have a total service weight age of 1 + 2 + 3 + 4 + 5 = 15 points.
Incorporate into Compensation:
Once you have the total service weight-age for each employee, incorporate it into the settlement calculation. This might involve multiplying the total service weight age by a certain factor to determine the additional compensation for the employee.
Discuss and Negotiate:
Before finalizing the settlement, it's important to discuss and negotiate the service weight-age with the union representatives and employees. Transparency and clear communication are key to ensuring that the process is fair and understood by all parties.
Hence, the exact calculation method and the scale of service weight-age can vary based on the agreement between the company and the union. It's crucial to involve relevant stakeholders, such as HR professionals and union representatives, in the decision-making process and to adhere to any legal or contractual requirements in your jurisdiction.
Thanks
From India, Bangalore
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