Hello friends!
I am trying to find out what is the ideal percentage of salaries for each department. I mean from the total salary budget, say for Rs.100/-, what should be the ideal percentage for each department's salary?
As per my knowledge and understanding, a major chunk of the total salary budget should go to the Sales dept and other revenue generating department, but is there any blueprint about it or any concept/idea which can help us to identify this kind of budget allocation?
Kindly advise.
Thanks
Ranjana
I am trying to find out what is the ideal percentage of salaries for each department. I mean from the total salary budget, say for Rs.100/-, what should be the ideal percentage for each department's salary?
As per my knowledge and understanding, a major chunk of the total salary budget should go to the Sales dept and other revenue generating department, but is there any blueprint about it or any concept/idea which can help us to identify this kind of budget allocation?
Kindly advise.
Thanks
Ranjana
I have never heard of any rules that prescribe how salary is distributed in an organisation.
Every organisation is different, and build their business according to the what they are trying to achieve.
What happens if in YOUR organisation, there are more HR people than Sales people? HR gets the highest proportion of the salary budget.
In my view, the area that is likely to get the highest proportion of the budget would be management as their salaries are much higher.
It may be an admirable theory to assign the highest proportion of the salary budget to revenue earning departments, but I have some doubts as to whether it would work in the real world. In my long experience, many organisations seem to be be top heavy with administration people, e.g. HR, Finance, and other assorted pen pushers and paper shufflers, etc.
From Australia, Melbourne
661Every organisation is different, and build their business according to the what they are trying to achieve.
What happens if in YOUR organisation, there are more HR people than Sales people? HR gets the highest proportion of the salary budget.
In my view, the area that is likely to get the highest proportion of the budget would be management as their salaries are much higher.
It may be an admirable theory to assign the highest proportion of the salary budget to revenue earning departments, but I have some doubts as to whether it would work in the real world. In my long experience, many organisations seem to be be top heavy with administration people, e.g. HR, Finance, and other assorted pen pushers and paper shufflers, etc.
From Australia, Melbourne
How can you just allocate an 'ideal' salary to each department?
This is ridiculous !
The budget provides for the cost of each function and department and for each element of cost. how did you make a total company level budget without departmental budgets?
From India, Mumbai
This is ridiculous !
The budget provides for the cost of each function and department and for each element of cost. how did you make a total company level budget without departmental budgets?
From India, Mumbai
Mr. Banerjee, please read the query carefully... its not ideal salary, its ideal percentage and the question itself asks if there is any such concept(nowhere have I have mentioned that something like that exists). Just an advice, if you find some post ridiculous or funny, please dont waste your time further on it.... go ahead and comment on other query which may seek your attention.
Thanks!!
Thanks!!
My question is the same.
How did you get an idea that there is an ideal percentage of salary across division for any industry?
Incidentally, can you get an ideal percentage without ideal salary?
And I am not wondering if you are aware of how budgets are even made.
Will you make a budget without knowing the salary and number of people in a department?
You have put a query on a public forum and I am a member of the forum. If I find a particular concept ridiculous, then yes, I will comment on it and you can't expect that on an open forum you will have a selective list of people who will respond in the manner you wish.
From India, Mumbai
How did you get an idea that there is an ideal percentage of salary across division for any industry?
Incidentally, can you get an ideal percentage without ideal salary?
And I am not wondering if you are aware of how budgets are even made.
Will you make a budget without knowing the salary and number of people in a department?
You have put a query on a public forum and I am a member of the forum. If I find a particular concept ridiculous, then yes, I will comment on it and you can't expect that on an open forum you will have a selective list of people who will respond in the manner you wish.
From India, Mumbai
Ranjana-Lal-Sharma
Your comment on Mr Banerjee's post borders on being inappropriate. Please maintain a respectful attitude when replying to posts - even those you do not agree with.
We can have a "robust" discussion about various HR topics, but at all times this discussion must be respectful.
In this thread, let us confine our remarks solely to the points raised in regard to salary.
From Australia, Melbourne
Your comment on Mr Banerjee's post borders on being inappropriate. Please maintain a respectful attitude when replying to posts - even those you do not agree with.
We can have a "robust" discussion about various HR topics, but at all times this discussion must be respectful.
In this thread, let us confine our remarks solely to the points raised in regard to salary.
From Australia, Melbourne
Rajana,
Can you tell us why or how you came to the understanding suggesting a nexus between salary allocation and revenue earning departments?
I am not questioning the theory as I do see some merit in it. The idea is akin to another axiom, i.e. spending money on the things that generate income for a business, and cutting back on things that drain resources.
I've not been able to find anything on this subject, but there is a wealth of material online regarding salary, e.g. https://www.google.com/search?q=shou...hrome&ie=UTF-8
From Australia, Melbourne
Can you tell us why or how you came to the understanding suggesting a nexus between salary allocation and revenue earning departments?
I am not questioning the theory as I do see some merit in it. The idea is akin to another axiom, i.e. spending money on the things that generate income for a business, and cutting back on things that drain resources.
I've not been able to find anything on this subject, but there is a wealth of material online regarding salary, e.g. https://www.google.com/search?q=shou...hrome&ie=UTF-8
From Australia, Melbourne
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Salary-Note.doc
SALARY SHEET CALCULATION.xls