Compensation And Policy
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Greetings to My Seniors CiteHR Champians Members,

I need your expert guidance.....

I am facing one serious problem…

We had recruited many seniors experienced employees on junior level.
For example:
The positions needs 3 to 5 years experience occupied by 12 to 15 years experience.
The positions needs 8 to 10 years experience is occupied by 10 to 15 years experience
The positions needs 5 to 7 years experience is occupied by 10 to 12 years experience
The positions needs 2 to 5 years experience is occupied by 8 to 12 years experience.
The positions needs 3 to 8 years experience is occupied by 12 to 15 years experience

Actually, our organization chart and job descriptions clearly states requirements of competencies and experience as well as salary grade for particular position.

- Most of the people over the years have remained stagnant and become over experienced for the position they are holding at present.
- During the course of time newly recruited employees been offered more salaries than their grades and salary range fixed for the grades.
- Newly recruited employees were over qualified and experienced that is why they were not only paid higher salaries but also cross salary levels deserved by their job position.
- If we recruited 10 years experience candidate in place of 3 years Job experience Position, we have to pay for his 10 years experience as per market whereas his job position input to organization remain 3 years experienced level because his excess 7 years experience is not relevant to our organization.
There are some jobs which were required 10 to 12 years occupied by 3 to 5 years experience and placed into higher pay grades of 10 to 12 years experience.

Similarly 8 to 10 years experience jobs been offered to 3 to 5 years resulting in overpayment just under presumption that according to company grade they should be placed in higher grades applicable to their job position.

There are Job Positions of Electrical Engineer: who is required experience in electrical installation of manufacturing plant with circuit breaker, switchgears and power load distributions as well as Generator set. Our Recruitment team has recruited person from Power Sector who was into power generation dealing with gas turbine, Transmission lines, Load Distribution, CTPT units and Transformers kind of jobs which are highly paid than normal electrical engineer into manufacturing…

Similar job anomalies in recruitment in experience cause almost 45% of the job positions.
I have recently joined this organization and submitted my analysis report to the management now management wants solution from me…

What shall I do now?

Please advise…

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Hello Captain,

No luck today,,,people are busy responding to:
No Profit, We are working hard! Help me
Boss Proposed me
Moreover, your subjects is totally not understood by the most of members. Because they don't know:
What Job description has to do with salsry grades and
What expereince and qualifications matters in deciding salaries.
If someone is over qualified or underqualified salary has no connection its matter how you project your salary and bargain in salary negotiations ininterview is practice.
Salary grade business is farce in India.

Actually, you are discussing something meaningfull practices in the western countries..
Salary Grades
Job Positions with proper salary Grades
Job Descriptions with proper Qualification& Experience
Application of Job evaluation Methods to fix the salary
Regular Salary Surveys to update salary grade structure

All this mechanism doesnot work in india its horse trading HR in salary negotiations, Qualification & Expereince has no meaning because fresh graduate of IIM,IIT draw more than three to four times salary of over 10 to 15 years Executive in Banking or Manufacturing or Government Company's.

Experience or qualification doesnot fix the salaries...

This is beyond this peoples understanding and knowledge...You have posted on wrong site....with wrong people....


I think its always better to respond to the particular question raised by the member instead of expressing views on any other issue....sorry to say but i guess to discuss all this make ur own community and discuss........this cite is not right place of those people who only knw how to pull down.......Look ahead plz......

Now coming back to actual post.....well i must say its a good analysis....even we have the same chart for our employees and sometimes we do face problem.......I think you need to work on your HR policy also if possible try to develop their competencies (i knw bit difficult) but sometimes help...

We have also fixed the salary bands of the particular post as per market demand supply....and those employees who already crossed the max band level cant get more hike untill and unless they develop and get promoted...also we have motivated them to learn other skills so that they can be transferred to other dept. and get better position as well...

At the end we need to work for both Employer and employee (benefit). My suggestion may contain many loop holes but i have just tried to help u out.........

will try to give better inputs next time.........:icon1:
Apologies Captain Saab,
Your post is of a too complicated nature everything over my small mind :confused::confused::confused:
but let me see,,,
person recruited for 3 yrs exp, and worked in same position for 10 yrs, i.e in 7 yrs neither he felt need of job change, neither management felt need of change, else this situation wud not have arised...
person recruited for 3 yrs exp but having 10 yrs exp, fault of HR who did not read the requirement properly.
person recruited for 10 yrs exp but having only 3 yrs exp,, but now der is assumption that in ur case,
person having 3 yrs exp in turbine, transmission line = person having 10 yrs exp in electrical installation
this ur organisation must hav analyzed the technical ppl must hav analyzed it,,
more after some time,, im thinking
n what ur trying to do is now like making a machinery work which is lying unused since years so u have to combat the rust n broken parts
Thanks you very much Ms Vijeta and Mr. Ravi for your insight,
Dear Vijeta I ponder over your reply first of all I would like to know following:
What kind of pay bands are you using?
1) A Broad Band
2) A Wide Band

if employee reaches to the maximum limit of his grade as you said you freeze his salary. Then how you are giving annual increments based on performance? If don’t pay then it’s not fare policy and may cause low employee morale.

Well, after going through your reply and my past experience and expertise I have reach to the following conclusions and new compensation strategy for my organization:
I will evaluate employees past performance appraisal, then on the basis of my job descriptions conduct fresh job evaluation and align them to grade structure which will be updated as per current market salary levels.
Each job will be assigned new salary pay bands and spread so that they can be identified whether they are fitted in appropriate place in the salary grade range.
This means whether minimum, median or maximum in other words first quarter or second quarter or third quarter of fourth quarter on the basis of their performance and current market price of the jobs.

Now the real strategy will be:
To place core job positions and key job positions which are more strategic considering our long term business strategy for retention of best talent in my organization to prevent them from pirating or loosing they will be placed in third or fourth quarter in maximum of their respective salary grades.

Some mediocre jobs of average utility for example support functions and service jobs like Assistants, Secretaries, Executives and officers which are available in abundance can be placed in lower side of second quarter…because if we lose them due to average market pay business strategy and targets will not be affected.
Similarly low-end jobs like Clerical and Peons unskilled office staff will be placed in the first quartile so that they may not affect our overall business because they are not directly involve in the business process even if these position kept vacant it will not affect business.

Once this model is accepted, we can review all job positions and recruit and retrench surplus and non-performing redundancies….

What’s your stake on the above, please give me your feedback ….

Kind regards


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