Hi,
Request you to mail me the different salary components from different companies and how to compare our company ctc/salary with other companies.How to compare our salary grid with job seeker's salary grid while negotiation of salary. Please help me
Request you to mail me the information at the earliest.
Thanks in advance.
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From India
Request you to mail me the different salary components from different companies and how to compare our company ctc/salary with other companies.How to compare our salary grid with job seeker's salary grid while negotiation of salary. Please help me
Request you to mail me the information at the earliest.
Thanks in advance.
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=UHVzaHBhLm1hcmNoQGdtYW lsLmNvbQ==[/IMG]
From India
This is biggest dilemma in Indian job market to determine market pay for particular job. Because of variations and diverst nature of compensation practices across all india levels and from government sector to private sectors they do nto match each other. Every orgaization has its own compensation philosophy based practices.
Under this circumstaces you are driven by the thought that you shold follow market practice but you must know there is no standard market practice. For compensation professional with sound background of global practices its good opportunity to offer best compensation practices based on pay for perfomance.
Lets not believe on what others are doing and establish your own base salary and grade structure:
The Power of Base Pay
You're having trouble attracting good workers. Your key employees are interviewing elsewhere. What can you do? For starters, create a better compensation system. Family companies often have problems with hiring and retaining employees due to an inconsistent or insufficient pay system. Explains how to develop an effective, market-driven base pay system:
Then work out total cash inclusing basic salary+ operational allowance+ non operational allowance+perks and benefits cost = total cost of job.
If you are looking for only nomenclature of allowance to decorate your pay structure for negations then all above advise is waste of time.
Regards
Rashid
From Saudi Arabia
8Under this circumstaces you are driven by the thought that you shold follow market practice but you must know there is no standard market practice. For compensation professional with sound background of global practices its good opportunity to offer best compensation practices based on pay for perfomance.
Lets not believe on what others are doing and establish your own base salary and grade structure:
The Power of Base Pay
You're having trouble attracting good workers. Your key employees are interviewing elsewhere. What can you do? For starters, create a better compensation system. Family companies often have problems with hiring and retaining employees due to an inconsistent or insufficient pay system. Explains how to develop an effective, market-driven base pay system:
- Document your jobs. Document the responsibilities and functions of each job in your firm. Then have each employee fill out a job questionnaire detailing what he or she does. Use both to create written job descriptions.
- Group jobs. Based on the job descriptions, create an internal hierarchy by ranking each job from lowest to highest in terms of value to your organization. Then look for clusters in the hierarchy, and group the positions in appropriate grades.
- Gather market data. Obtain recent surveys containing pay data for your line of business and location. To find them, inquire at local colleges, large employers, human resource groups, chambers of commerce, and on the Internet. Match your jobs to common positions at similar companies in your industry or region. Don't expect perfect matches, but use other positions for comparison.
- Create pay ranges. Use the data to fix a salary midpoint and range for each grade of positions. You may find, for example, that the data indicates a midpoint salary of certain grade, with a range. It is likely the salary range for a given grade will overlap with ranges from the grades immediately above and below.
- Implement the system. Some of your employees' current pay may fall above or below the new ranges. For those underpaid, consider significant adjustments consistent with good performance. For those overpaid, you may have to hold adjustments for a few periods. To reduce the risk of losing overpaid employees, explain fully how you devised the pay system, and that it is based on market rates.
Then work out total cash inclusing basic salary+ operational allowance+ non operational allowance+perks and benefits cost = total cost of job.
If you are looking for only nomenclature of allowance to decorate your pay structure for negations then all above advise is waste of time.
Regards
Rashid
From Saudi Arabia
Halo Puspa,
Will mail u the salary components, comparing salary grid is simple, consider only the fixed components n not variable amount. Give 10-15% hike in take home salary whch automatically leads to 30-40% hike in total package, provided u have a lumpsum amount in annual components. If u have anymore queries, post me....Keep rockin......
From India, Mangaluru
Will mail u the salary components, comparing salary grid is simple, consider only the fixed components n not variable amount. Give 10-15% hike in take home salary whch automatically leads to 30-40% hike in total package, provided u have a lumpsum amount in annual components. If u have anymore queries, post me....Keep rockin......
From India, Mangaluru
Hi Dear Chumi,
I am your friend Rashid here,
Could you please enlighten us what exactly you mean by 10-15% hike that will have automatic cumulative effect resulting in 30-40 % hike in total.
For example my fixed components is :
Basic + HRA, CCA, VDA, FDA, Transport Alloance, Medical Allowance, School Allowance.
If this is increased by 10-15% how it will end up with 30 -40 ?
Satish Chumi please reply me ..
Regards
Rashid
From Saudi Arabia
I am your friend Rashid here,
Could you please enlighten us what exactly you mean by 10-15% hike that will have automatic cumulative effect resulting in 30-40 % hike in total.
For example my fixed components is :
Basic + HRA, CCA, VDA, FDA, Transport Alloance, Medical Allowance, School Allowance.
If this is increased by 10-15% how it will end up with 30 -40 ?
Satish Chumi please reply me ..
Regards
Rashid
From Saudi Arabia
As suggested by some other members, first take part or initiate a compensation survey pertaining to your industry. Check out where you stand in comparison with competition.Having done the above, decide - and this is where HR has to work closely with CFO - where you would like to be e.g. 70th or 80th percentile etc. This will depend to a large extent on the 'capacity to pay' of the organisation. As an offshoot of the above, decide on the Min and Max salaries for all the key positions in the organisation. With regards to 'heads of payment', it is getting less relevant as compared to a few years ago. There are very avenues to save tax ( and these too are likely to be further reduced in next couple of years ;(- ). However, pl ensure you have Basic and HRA - then you could have Medical Allowance, Education Allowance and Conveyance Allowance. Don't forget 'Bonus'. Keep as few heads as possible and resist the temptation to increase them or giving fancy names to them !While comparing CTC of candidates, you must keep the 'CTC' concept in mind. However, the youngsters today are 'obssesed with 'Take-home' and are seldom willing to consider long-term components like superannuation or even gratuity. They are already doubting that they will stay 5 years in any organisation !! So you need to keep abreast with the times and think innovatively - e.g. pay Bonus, LTA, as monthly payments, or Annual Performance Incentives on a quarterly basis !Be careful what all is included in the CTC given by the candidate - e.g. whether it includes mobile cost, subsidised food or travel etc. It is likely that you too are providing similar or even more benefits which need to be quantified.Hope the above is useful to you .....Regards,Innovation
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Salary Negotiation.pdf