Hi,
Wishing you all a Happy Shankranthi.
Please help me in understanding the procedure of the salary revision.
This is a new company and we have to revise the salary of our first batch of employees.
Is it finance who gives the budget to the HR and then HR based on the Performance Review submitted by the reporting manager decides the salary revision of the employees and take approval from the finance or is their any other way.
Pleeeezzz advice me on this.
Thanks and Regards,
Chaya.
From India, Bangalore
Wishing you all a Happy Shankranthi.
Please help me in understanding the procedure of the salary revision.
This is a new company and we have to revise the salary of our first batch of employees.
Is it finance who gives the budget to the HR and then HR based on the Performance Review submitted by the reporting manager decides the salary revision of the employees and take approval from the finance or is their any other way.
Pleeeezzz advice me on this.
Thanks and Regards,
Chaya.
From India, Bangalore
Hi Chaya
There is no approval involved. The Process works like this
1.HR initiates Performance Appraisal
2. All Departments give their ratings and the Heads of Departments review ratings and sitting with CEO freeze the Ratings.
3. HR keeping in mind the Market situation work out increases for different ratings and levels. They should also work on disparities as new recruitments would have brought in some disparities.
4. Work out the Total impact
5. Operations/All Departments, Finance, HR with CEO then decide the increase the Company can afford to give for that year.
6. Initial impact works out to say 50 lakhs additional burden which work out to 20 percent of pay bill. The committee comprising of CEO Finance Operations and HR decide that the percentage should be brought down to 15, then Hr works out the revision accordingly. It is also possible that this committee may decide to increase this 25%
This is how I have seen this process working.
Siva
From India, Chennai
368There is no approval involved. The Process works like this
1.HR initiates Performance Appraisal
2. All Departments give their ratings and the Heads of Departments review ratings and sitting with CEO freeze the Ratings.
3. HR keeping in mind the Market situation work out increases for different ratings and levels. They should also work on disparities as new recruitments would have brought in some disparities.
4. Work out the Total impact
5. Operations/All Departments, Finance, HR with CEO then decide the increase the Company can afford to give for that year.
6. Initial impact works out to say 50 lakhs additional burden which work out to 20 percent of pay bill. The committee comprising of CEO Finance Operations and HR decide that the percentage should be brought down to 15, then Hr works out the revision accordingly. It is also possible that this committee may decide to increase this 25%
This is how I have seen this process working.
Siva
From India, Chennai
Do hire a hr consultant to understand the market dynamics for your industry. The hr consultant gives you a clear picture of salary structure of other companies from your industry.
From India, Bangalore
From India, Bangalore
Hi Chaya,
According to my knowledge,
1) You have to survey the market and bench mark the salaries according to market and the years of experience in the relevant field of the employees then give your figures to CEO.
2) The manager of each team should recommend salary for his team members.
3) On the basis of both figures you can give raise the salaries of the employees.
Wish you all the best!
Diparna :)
From India, Pune
According to my knowledge,
1) You have to survey the market and bench mark the salaries according to market and the years of experience in the relevant field of the employees then give your figures to CEO.
2) The manager of each team should recommend salary for his team members.
3) On the basis of both figures you can give raise the salaries of the employees.
Wish you all the best!
Diparna :)
From India, Pune
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Salary Revision formulas- CA.doc
Salary Revision.xls