Ed Llarena, Jr.
Owner/ Managing Partner
Hr, Talent Management
+1 Other

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Dear All,
My boss asked me to prepare a Competency Based Salary System for our Employees.
We've already had a Competency Assessment (CA) for our Employees. In this CA, we have five levels (1 - 5 points in which 1 is the lowest point and it means no competence, 5 points is the highest points and means excellent).
Our current salary rate for employee is not consistent. It based on the feeling only.
Please help me with the following:
1. How to set up a job banding. We have Construction Engineers, Mechanical Engineers, Electrical Engineers, Site Supervisors, Legal Department, Marketing Dept, IT, HR, Accounting Department.
2. How to set up a Competency Based Salary System based on the current salary rate. The rate is moving from 300 USD to 3.000 USD/month
Thank you very much for your answers.
Chuc Huong

From Vietnam, Hanoi
A competency based salary system uses broad banding and the rates for each band or job family is based on prevailing market rates.
The ranges adopted for each band is so wide and can range from the 20th percentile up to the 75th percentile of the current market data ---- versus the traditional JE method of using the median or 50th percentile.
To be able to set up a structure and maintain them, you have to complete the set-up of your job families. You must also have regular access to compensation surveys.
Best wishes and good luck!
Ed Llarena, Jr.
Riyadh, KSA

From Philippines, Parañaque
One easy way to have competency as part of the compensation is to have competency evaluation incorporated in performance evaluation and give a percentage of bonus and increments associated with the rating that also has competency assessment as a part of it. However, still very difficult to have competency for job families..i would suggest you have competencies for different types of jobs..like middle management, senior management etc and use it for competency evaluation.
From India, Bangalore
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