Dear Seniors,
I am currently in the process of designing a grade and band structure. I need to know, on average, how many years an employee stays in one designation.
Also, what is the maximum band we can keep for one grade or level?
From India, Pune
Acknowledge(0)
Amend(0)
6I am currently in the process of designing a grade and band structure. I need to know, on average, how many years an employee stays in one designation.
Also, what is the maximum band we can keep for one grade or level?
From India, Pune
Acknowledge(0)Amend(0)
Hi Chaitrali I don’t think as any one want stay for long time to get promotion. Based on the performance he/she may get promotion much quicker
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Chaitrali,
Salary band and structure all depend on how you look at it. I would suggest, please wait for our senior members to reply to your queries on it. Although in my company, we had a salary band and accordingly we had a structure, but based on management decision, we had to take it back. We had designed the band/grade like this. Note Grade/Band D was not there. I'm referring to the IT industry.
Grade/Band A - CEO, CFO, VPs
Grade/Band B - General Manager, Deputy GM, Assistant Managers
Grade/Band C - Senior Executives, Team Leads
Grade/Band E - Executives
Grade/Band F - Semi-skilled Labourers.
Or this could be done in a reverse way also. Let me know your expectations of all the above. However, please wait for my senior colleagues for their replies, as they could shed more light on it.
Regards,
Ajay Kulkarni
From India, Bangalore
Acknowledge(1)
Amend(0)
0
0
Salary band and structure all depend on how you look at it. I would suggest, please wait for our senior members to reply to your queries on it. Although in my company, we had a salary band and accordingly we had a structure, but based on management decision, we had to take it back. We had designed the band/grade like this. Note Grade/Band D was not there. I'm referring to the IT industry.
Grade/Band A - CEO, CFO, VPs
Grade/Band B - General Manager, Deputy GM, Assistant Managers
Grade/Band C - Senior Executives, Team Leads
Grade/Band E - Executives
Grade/Band F - Semi-skilled Labourers.
Or this could be done in a reverse way also. Let me know your expectations of all the above. However, please wait for my senior colleagues for their replies, as they could shed more light on it.
Regards,
Ajay Kulkarni
From India, Bangalore
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The information provided in the user reply is not entirely accurate. It's important to note that salary bands and grade structures should be designed based on job evaluation, market benchmarks, and internal equity considerations. It's advisable to consult HR professionals and consider industry standards for a more comprehensive approach.
0
0
For this, we should first be clear about what is 'grade' and what is 'band'.
Any organization may require different types of personnel as well as different skills to obtain the organization's objective. Here, different types stand for differing levels of managerial and executive abilities. Skills denote the technical skills. Some skills may be easily available in the market, and some may not. In the organization structure, the higher you go, the more managerial levels are required than the executive skills (which are basically supervisory skills). The company has to decide how many levels they will require based on the functional requirement. But this number has to be adjusted, keeping in view the financial viability of the company, the size and nature of the company, and also the aspirations of the employees for career progression. (I am not explaining and elaborating all these aspects for the sake of brevity.) Similarly, at the working level, what types of skills are required are to be decided based on the nature of business of the company. The skills are to be graded in terms of their importance to the company. The number of grades each skill will have is to be decided based on the technical requirement and also the financial viability, size of the company, and the employee expectations. This is about the grade structure. Thus, we cannot give a thumb rule for the number of grades a company can have. A guiding factor can be the practice followed in similar companies.
Band denotes a pay band. A band can contain so many grades. But each grade within the same band may have varying grade-pay. This is essentially to strike a balance between the organization's requirement and employee expectations. Needless to say that this also has to be decided based on the business of the company as well as its financial strength, size, and the practice followed in similar concerns. No thumb rule is possible.
From India, Madras
Acknowledge(5)
Amend(0)
0
0
Any organization may require different types of personnel as well as different skills to obtain the organization's objective. Here, different types stand for differing levels of managerial and executive abilities. Skills denote the technical skills. Some skills may be easily available in the market, and some may not. In the organization structure, the higher you go, the more managerial levels are required than the executive skills (which are basically supervisory skills). The company has to decide how many levels they will require based on the functional requirement. But this number has to be adjusted, keeping in view the financial viability of the company, the size and nature of the company, and also the aspirations of the employees for career progression. (I am not explaining and elaborating all these aspects for the sake of brevity.) Similarly, at the working level, what types of skills are required are to be decided based on the nature of business of the company. The skills are to be graded in terms of their importance to the company. The number of grades each skill will have is to be decided based on the technical requirement and also the financial viability, size of the company, and the employee expectations. This is about the grade structure. Thus, we cannot give a thumb rule for the number of grades a company can have. A guiding factor can be the practice followed in similar companies.
Band denotes a pay band. A band can contain so many grades. But each grade within the same band may have varying grade-pay. This is essentially to strike a balance between the organization's requirement and employee expectations. Needless to say that this also has to be decided based on the business of the company as well as its financial strength, size, and the practice followed in similar concerns. No thumb rule is possible.
From India, Madras
Acknowledge(5)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply provides a comprehensive overview of grade and band structures in organizations, emphasizing the importance of aligning them with business needs and financial considerations. No specific inaccuracies were identified. (1 Acknowledge point)
0
0
Dear Chaitrali,
I echo our experts. Unless you have a policy of 'Up or Out', similar to what BCG does, there can be no thumb rule. Any talent requires a career path, hence you might need to identify what will take a talent to the next stage. That's your development plan. A mandatory promotion slab is there with the public concerns. However, optimum performance is a must to remain eligible for that. Identify what should be the employee life cycle in your firm and identify the development path. That might remain a reference to the scale or standard for promotion.
From India, Mumbai
Acknowledge(2)
Amend(0)
0
0
I echo our experts. Unless you have a policy of 'Up or Out', similar to what BCG does, there can be no thumb rule. Any talent requires a career path, hence you might need to identify what will take a talent to the next stage. That's your development plan. A mandatory promotion slab is there with the public concerns. However, optimum performance is a must to remain eligible for that. Identify what should be the employee life cycle in your firm and identify the development path. That might remain a reference to the scale or standard for promotion.
From India, Mumbai
Acknowledge(2)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains some valid points on talent development and career pathing but lacks specific information on the average tenure on a designation and maximum bands per grade. It would be beneficial to include these details for a more comprehensive response.
0
0
Hi Chaitrali,
The posts by Ajay and Bpugazhendhi gave you a very good foundation on which to build your Grade and Band structure.
As said earlier, bands and grades depend on the size of the company and the way it operates, including the levels of authority and management that exist or are envisioned by the company.
I, for one, would not bracket the CEO with other management staff in a grade. The CEO must have a grade of its own. The work of a CEO is very different from that of others, so do not band the CEO with others; have an exclusive band for the CEO.
Companies that take a top-down view will start the top grades from "A," and those that take a bottom-up view will start the lowest grade with "A." This is all a matter of organizational views; how and where you start a grade does not matter.
One must first list out the current levels of management, executives, and non-executives, and examine the work done by each, as well as the roles and responsibilities of each position. Please look at grades by position.
A large organization with a pan-India presence will have a different grade structure from a smaller, one-city organization. Similarly, an organization that is multinational will have a different grade structure.
I think the best way is to start from the bottom. Examine the levels of employees at different levels - non-executives, executives, senior executives, assistant managers, managers, senior managers, CTO, CFO, DGMs, GMs, AVPs, VPs, COOs. Once you have listed out the number of people in such positions, you can then examine the grades you will require. If you find that there is only one person in a position or a few positions, then it would be better to band such positions together. The Salary Band can be used to differentiate between positions.
When deciding on bands, first examine the number of years the organization would keep a person in a grade. In some cases, bands may overlap but not by too much.
Bands will show the lowest and highest compensation for that band. Although it is outdated, you may show the minimum increment in a band, e.g., 35000 - 1500 - 60000.
You may establish bands based on basic salary or on CTC; this, again, is based on how the management looks at compensation and how many components make up the CTC.
Please let me know if this is helpful so that we can progress further on this chapter.
Regards,
Ronald
From India, Hyderabad
Acknowledge(1)Amend(0)
0
0
The posts by Ajay and Bpugazhendhi gave you a very good foundation on which to build your Grade and Band structure.
As said earlier, bands and grades depend on the size of the company and the way it operates, including the levels of authority and management that exist or are envisioned by the company.
I, for one, would not bracket the CEO with other management staff in a grade. The CEO must have a grade of its own. The work of a CEO is very different from that of others, so do not band the CEO with others; have an exclusive band for the CEO.
Companies that take a top-down view will start the top grades from "A," and those that take a bottom-up view will start the lowest grade with "A." This is all a matter of organizational views; how and where you start a grade does not matter.
One must first list out the current levels of management, executives, and non-executives, and examine the work done by each, as well as the roles and responsibilities of each position. Please look at grades by position.
A large organization with a pan-India presence will have a different grade structure from a smaller, one-city organization. Similarly, an organization that is multinational will have a different grade structure.
I think the best way is to start from the bottom. Examine the levels of employees at different levels - non-executives, executives, senior executives, assistant managers, managers, senior managers, CTO, CFO, DGMs, GMs, AVPs, VPs, COOs. Once you have listed out the number of people in such positions, you can then examine the grades you will require. If you find that there is only one person in a position or a few positions, then it would be better to band such positions together. The Salary Band can be used to differentiate between positions.
When deciding on bands, first examine the number of years the organization would keep a person in a grade. In some cases, bands may overlap but not by too much.
Bands will show the lowest and highest compensation for that band. Although it is outdated, you may show the minimum increment in a band, e.g., 35000 - 1500 - 60000.
You may establish bands based on basic salary or on CTC; this, again, is based on how the management looks at compensation and how many components make up the CTC.
Please let me know if this is helpful so that we can progress further on this chapter.
Regards,
Ronald
From India, Hyderabad
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Checked)-The information provided is insightful and covers the key aspects of designing a grade and band structure. However, it's important to note that the specific duration an employee stays on one designation can vary widely based on industry, company culture, and individual preferences. Additionally, the suggestion to have a separate band for the CEO is a common practice in many organizations to reflect the unique responsibilities of that role. Overall, the reply offers valuable insights for structuring grades and bands effectively. (1 Acknowledge point)
0
0
Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Grade Structure for Company.xls
Appointment letter Grade M 7.doc
CiteHR.AI
(Fact Check Failed/Partial)-The reply provided is incorrect. Employees may have various reasons for staying in a role, and promotions are not solely based on performance. It's essential to consider retention strategies and career progression opportunities.