Hi, Everyone,I have worked on a salary survey and i have to come up with new salary ranges..Can you people guide me how generally do we set up the salary ranges?
From Pakistan, Karachi
From Pakistan, Karachi
Hi,
Salary ranges depend on various factors i.e. Market pay for the jobs, pay range whcih you will maintain based on bands in your org.
you may wish to start that by getting the market salary data and place that inline with your level bands in the organization, then decide on the percentile you may want to maintain for your staff as compared to market data. Further you may do the range i.e. 1st find the median pay (that will be the percentile you may want to consider as median from parket data) for each grade and then find the min and max. normally thye range of band is 50% i.e. 25% below median and 25% above median.
Once you have bands, chcek the feasibility by applying the same to your existing staff and understand the overlapping factor of salary across bands whcih needs to suffice high paid outliers in each band.
If the existing salaries does not fit well, realign your considered median and do the exercise again. Usually companies in IT pay salaries from 40th percentile to 70th percentile of market pay. Again, your primary focus should be on your existing staff and not only to the market pay.
Regards,
From India, Delhi
2Salary ranges depend on various factors i.e. Market pay for the jobs, pay range whcih you will maintain based on bands in your org.
you may wish to start that by getting the market salary data and place that inline with your level bands in the organization, then decide on the percentile you may want to maintain for your staff as compared to market data. Further you may do the range i.e. 1st find the median pay (that will be the percentile you may want to consider as median from parket data) for each grade and then find the min and max. normally thye range of band is 50% i.e. 25% below median and 25% above median.
Once you have bands, chcek the feasibility by applying the same to your existing staff and understand the overlapping factor of salary across bands whcih needs to suffice high paid outliers in each band.
If the existing salaries does not fit well, realign your considered median and do the exercise again. Usually companies in IT pay salaries from 40th percentile to 70th percentile of market pay. Again, your primary focus should be on your existing staff and not only to the market pay.
Regards,
From India, Delhi
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Salary-Note.doc
SALARY SHEET CALCULATION.xls