Hi everyone
How do companies determine the salary review of their executives???
1. Whether its to be done yearly/once in two yr/3 yrs, etc??
2. What percentage of hike to be given??
3. How to determine what other companies are paying or what is the industry rate??
regards
[/b]
From India, Kochi
How do companies determine the salary review of their executives???
1. Whether its to be done yearly/once in two yr/3 yrs, etc??
2. What percentage of hike to be given??
3. How to determine what other companies are paying or what is the industry rate??
regards
[/b]
From India, Kochi
Hi Kaushika,
It would help the viewers to respond to your query if you can let us know what kind of Industry is your Company into. The frequency of the salary hikes and the Percentage and the Market rate differs from Industry to Industry.
Please do give some more inputs to your question you will see desired results shortly thereafter.
Regards,
~Raghav V
From India, Kochi
45It would help the viewers to respond to your query if you can let us know what kind of Industry is your Company into. The frequency of the salary hikes and the Percentage and the Market rate differs from Industry to Industry.
Please do give some more inputs to your question you will see desired results shortly thereafter.
Regards,
~Raghav V
From India, Kochi
Hi,
1.Proposed Salary increase to be given every year (financial or calander year)
2.Percentage increase depends upon the size of the company say., a Group Company or only one company. Increase depends upon the profit it makes and it has made the previous years. If it is a small group company, the increase may be given between 10 and 12% and for big group companies it may be even 20 to 25%. Most of the companies differentiate the increment criteria between departments say, Manufacturing, Marketing & Sales, etc. Generally for Marketing & Sales the increase would be more due to employee turnover.
3.Comparison within similar type of industries can be done only by compensation surveys
Regards
Bharathi
1.Proposed Salary increase to be given every year (financial or calander year)
2.Percentage increase depends upon the size of the company say., a Group Company or only one company. Increase depends upon the profit it makes and it has made the previous years. If it is a small group company, the increase may be given between 10 and 12% and for big group companies it may be even 20 to 25%. Most of the companies differentiate the increment criteria between departments say, Manufacturing, Marketing & Sales, etc. Generally for Marketing & Sales the increase would be more due to employee turnover.
3.Comparison within similar type of industries can be done only by compensation surveys
Regards
Bharathi
Hi,
The compensation, increments and incentive will always depend on your financial status, market rate and your anticipated production in the coming financial year. A lots of planning and specifically job evaluation has to go behind the decision.
Hope it clears your doubt,
If it doesnt, can you please specify the exact area you want to know.
Regards,
Santosh Verma.
(9886609605).
From India, Bangalore
The compensation, increments and incentive will always depend on your financial status, market rate and your anticipated production in the coming financial year. A lots of planning and specifically job evaluation has to go behind the decision.
Hope it clears your doubt,
If it doesnt, can you please specify the exact area you want to know.
Regards,
Santosh Verma.
(9886609605).
From India, Bangalore
thanx Bharathi for the ans. But how does one finds out what the competitors are paying.....is there any organised body that keeps such info... i m talking in terms of agri-sector
From India, Kochi
From India, Kochi
Following are the factors that determine salary hike % or amount;
1 Compensation Survey Data.
2 Inflation Rate in economy.
3 Geographical disparities/ similarity in compensation if company has multilocational operations.
4 Willingness to position company in the salary range identified thr. comp. data (Min. Average & Maximum) wherein average refers to band/ pay reference point.
5 Performance Rating patterns emerged in bell curve (based on rating scale).
6 Business affordability.
Regards,
Vivek
From India, Delhi
1 Compensation Survey Data.
2 Inflation Rate in economy.
3 Geographical disparities/ similarity in compensation if company has multilocational operations.
4 Willingness to position company in the salary range identified thr. comp. data (Min. Average & Maximum) wherein average refers to band/ pay reference point.
5 Performance Rating patterns emerged in bell curve (based on rating scale).
6 Business affordability.
Regards,
Vivek
From India, Delhi
Inflation rate increases every year so you need to appraise them atleast once in a year. Regards Anil
From India, Delhi
From India, Delhi
Hi Bharathi,
We worked with Mafoi & Mercer. However I feel Mercer has got better capability in doing C & B Study and one of the reasons why they r better is becoz they have a certified job evaluation tool in place.
Vivek
From India, Delhi
We worked with Mafoi & Mercer. However I feel Mercer has got better capability in doing C & B Study and one of the reasons why they r better is becoz they have a certified job evaluation tool in place.
Vivek
From India, Delhi
Kaush,
You need find out whether there is any c & B Survey going on in ur industry in case if yes then participate in that after discussing with management team. If not you can sponsor a survey study by seeking assistance from consultants.
For budget affordability pls. refer to the manpower budgets as to how much have u budgeted which will be 'check n balanace' mechanism during the exercise of Post Review Consequence Management Exercise.
Reagrds,
Vivek
From India, Delhi
You need find out whether there is any c & B Survey going on in ur industry in case if yes then participate in that after discussing with management team. If not you can sponsor a survey study by seeking assistance from consultants.
For budget affordability pls. refer to the manpower budgets as to how much have u budgeted which will be 'check n balanace' mechanism during the exercise of Post Review Consequence Management Exercise.
Reagrds,
Vivek
From India, Delhi
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