Employee Grade And Salary Structure - DOC Download - CiteHR
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Hi!

Please go to the previous page (page 1) of this discussion thread. The following is a copy of the first post:

"The introduction of job grades and/ or bands in an organization that will become the framework of an organization's salary structure needs many pre-requisites. It is something that is better left in the hands of professionals like us who has been doing it for a long time. Simply copying certain models (like the one given above) will not be a good help because it opens to so many questions that must be answered. It can also create problems for the organization that can cause your job because compensation is a very sensitive subject matter. This is where your competence and/ or incompetence can be uncovered.

Hence, if your organization really needs it, then allocate a budget and call the professionals.

Offhand, however, let me say the following:

1. Job Grades and Bands are not simply designed out of nothing. Whatever you will design will mean cost for the company. Hence, you need to understand the four basic compensation principles of: internal equity, external competitiveness, affordability, and sustainability.

If you are a new company, you need the owners pay philosophy and policy to be able to create a good and acceptable salary structure for them. If you are already operating, then you need the latest payroll list to be able to see and plot the current salary ranges of the different job classes in your organization, ie. the executive, managerial, supervisory, staff, clerical, and admin support personnel.

2. Each Job Grade or Band must have the following elements: minimum rate, median rate, and maximum rate. These rates must be properly benchmarked with the current industry market where the company belongs so your pay will be competitive (external competitiveness). The rate ranges in each grade or band must be so designed that overlaps are rational and distortion is avoided at all times. Overlaps are to be observed according to the basic theories we learned in the textbooks.

3. The entire salary structure must be designed in such a way that it is not only affordable to the company, but is also sustainable by it for the long term (3rd & 4th principles).

Best regards.

Ed L.
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Hi!

In the Compensation Lingo, a Job Grade and a Job Band refers to the same thing, i.e. the salary grade.

However, the word "job grade" is more popularly used to describe the traditional grades of a salary structure that adopts between 12-22 job grades (e.g. Hay's Salary Structure design is generally from JG5 - JG24, which has a total of 19 job grades). The word "band" is used to describe the few "salary grades" of structures that uses the "broad banding" method in salary structure design.

Broad Banding would refer to the method of using a few salary grades (e.g. 6-8) in the design of salary structures. They are characterized by "very wide rate ranges" in each grade, and "substantial overlaps" between two bands (details on this aspect has also been discussed earlier in page 1 of this thread).

Hence, the common problem that arises in broad banding is "salary distortion" because certain positions that may have been evaluated and classified in a higher job band, can get a lower rate than some positions that were evaluated and classified in a lower job band--- when both positions are in the overlap rates.

I do not give away samples on this matter. But I have done projects in this area for very big business organizations in Riyadh, KSA, e.g. FMHRC/ SRMG, Team One/ FedEx KSA, Fawaz Al Hokair Group, SABB).

Best regards.

Ed Llarena, Jr.

Managing Partner

Emilla International Consulting Services


Easy said than done. A Construction Company has many verticals of work like Roads, Railways & Bridges, Buildings, Industry, Power & Transmission, Chimneys & Silos, Marine, Ground Engineering, Urban Infra and the list goes on. A Civil Construction Company is basically "Site Based" and there are wings like Civil and Structural Fabrication & Erection. The basic Technical Structure of a Construction Company thoroughly supported by Commercial Departments like Store, Accounts, Administration, Safety etc. Thus, drawing designation-wise "Job Description" is a tremendously tuff job (with specialization like Chimney, Marine, QA/QC, Quantity Survey, Billing, Material Reconciliation etc. etc.).
It therefore be given a good thought and effort to draw Grades considering the factors above.
Regards,
Soumitra Sengupta
Hi Nadhiyaji;

Thanks for ur query in CiteHR reg. Grading of employees.

CATEGORISING / GRADING of every Employee’s Designations in an Organisation (Mfg. Cos. like Steel, Cement, Sugar, Power, Chemical, Mines etc.,) from Kalassi / Peon to GM/Director (i.e., Un-skilled to Top Management) is an important task of HR Dept. tobe done in such a way that; every employees Qualifications, experiences, salaries are taken into account to avoid complaints of anomaly; later.

Also, it needs tobe done carefully and properly that the HR Dept. staff who have to prepare Annual Increments, Promotions, Fitment, Benefits etc., are able to understand the Categorisation so as to programme it in Computer while making such Increment, Promotion Orders with Salary, Grades for hundreds of employees at a stretch .

The Salaries are tobe fixed for each Grade/Category/Level in such a way that employees in each Grade has a particular Salary range/Band in a descending order say; from GM down to the Un-skilled employees. Such Categorisation helps HR Dept. to group all employees from Un-SK to Top Mngmnt. and it is required for HR, MIS Reports & for filing various Returns. It will also help Interview Panel Members to fix a particular Candidate’s Designation in a Grade matching to his salary & post for the new candidate considering his Qlfn. & exp. vis-à-vis existing employees in the particular Dept. to which the new employee is going to join / recruited; to reduce heart-burning and anomaly problems among existing employees; later.

Salary fixation for each employee (based on Qlfcn, exp. & job knowledge) is one aspect whereas fixing his Grade/Category depending upon his Designation is another. The 2nd one i.e., Categorising/ grading/ grouping say hundreds of employees into various grades is important to say how many Engrs./Officers, Managers, Mechanics are there at a particular time. State Laws require Filing of Returns to District Industries Centre where Company has to state how many people of the Particular State are given jobs;- Category wise, say Skilled, Supervisor etc., In Karnataka, every Company has to file KANNADIGAS Report to provide statistics of Kannadigas employed in Manpower Returns - Quarterly.

I have attempted to Categorise all employee’s Designations as under (from Un-SK to Top Management in XL format) so that every employees Designations in a Labour Intesive Units like Steel Plants; are covered in Ascending Order; starting with

Un-Skilled,

Semi-Skilled &

Skilled . . (Skilled - 4 Levels like Jr.Optr, Asst.Optr, Optr & Sr.Optr.)

Supervisory (4 Levels - Jr.Supervisr, Asst.Supervsr, Supervisr & Sr.Supervisor)

Officers/Engineers (4 Levels – Jr.Offcr/Jr.Engr, Asst.Ofcr/Engr, Ofcr/Engr, Sr.O/Sr.Engr.)

Managers (7 levels – Jr.Manager, Asst.Mgr, Dy.Mgr, Manager, Sr.Manager, AGM & DGM)

TOP MANAGEMENT (5 Levels – GM, SR.GM, CGM, AVP, VP, CEO, PRESIDENT, DIRECTOR, E.D. & M.D.)

However, the Categorisation, Levels & Designations could be changed as per the Organisations needs & nature of Industries. The position is different in Software & other type of Companies compared to Steel, Cement etc., as stated above.

As Salaries will vary depending upon Qlfcn, Exp. location, type of industry etc., the same can be grouped to fit into appropriate grades. I request respectable Cite HR Senior Members to peruse the above and provide us (in a Statement Form) the types of Categorization / Grading of all Designations available for the benefit of HR Managers who need such List not only for their works but also, for convincing Senior Management whenever Salary, Designations are to be reviewed / re-fixed. Even though there may not be fixed norms for revision or change, it will be helpful if Seniors provide some Formats / Guidelines which will be showing Categorization / Grading of all designations for better presentation as there is a saying; something is better than nothing. This will help many HR Professionals just like Standard quotations / specifications, Comparative statements with rates for products like Car, bike etc.

I request Cite HR Sr. Members to give more information on this important aspect of HR to help HR Managers for categorizing the employees for various HR & MIS Reports and also for Recruitment teams.

As January is Approacing, HR Dept. is busy to compile Holidays List, Update all Leaves, HR Infn. to consider Promotion, S.I./A.I. in Jan.2017 after P.A., Statutory Returns,etc., the below Rules/points can be Useful; if not yet done.

===========



1.HOLIDAY LIST-2017 – OPTIONAL HOLIDAYS:

================



For Continuous Processing Plants (for uninterrupted Works), 2 Optional Holidays can be Provided in the National & Festival Holidays to ensure Min.MP to man Essential Services like Prodn., O&M, A/c.s, HR etc., as most empl’s don’t observe all Festivals at 1 time & so, when 1 set of empl’s take Holiday, other set can work & vise-versa. It helps HODs to ensure min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid OT or stop work due to Holidays (without increasing Declared Holidays-10-12).

2. FRAMING H.R.RULES:

===========



HR Mgr to Draft all Rules after GM/MD giving detls of Co’s. Vision, Mission, Objectives, Total MP reqd, Posts, Grades, Salary, Benefits etc.

HRM can ask GM



What Rules, Policies to adopt.

For Cos. with 50+ empl’s, U can hire Consultant with 20+ yrs exp. He must make Rules keeping the interest of Co, its empls, Complying with Labour Acts, similar Cos. in the area; as HR Policies can affect Co. Reputation, its empl’s Morale & Retention.

3. WHY STANDING ORDERS ? (S.O.) - I.D.Act

===============

As per Industrial Employment (S.O.) Act,1946, Cos. with 50+ Workmen should Frame & get the S.O. Certified by Dy.LC. The CERTIFIED S.O. becomes part of STATUTORY TERMS & CONDITIONS OF SERVICE – BINDING the Co. & its empl’s.



S.O. is Statutory. Anything in Apptt.Order, Agreement contrary to S.O. can be Contested in Court. Hence, Co. Must

define with SUFFICIENT PRECISION; CONDITIONS OF EMPLOYMENT under them & Make them KNOWN to empl’s to avoid Empl’s Contesting in Court that Co. has not Notified them. i.e.,

The S.O. so Certified; empowers the Co. to take Action against its Empl’s for violating T&C in S.O. BUT; the Co. cannot punish Empl’s for Acts not included in S.O - SUPREME COURT.

TERMINATION WITHOUT ENQUIRY/NATURAL JUSTICE etc. IS ILLEGAL & Court can re-instate such Empl’s.

Hence, Imp.Acts/Conducts involving Discipline of empl’s; MUST be included in “MIS-CONDUCT LIST” in S.O. & PROCEDURES of NATURAL JUSTICE MUST be OBSERVED to make Co’s. action LEGAL.

Do’s, Don’t’s, Duties of empl’s -120 Points.

Mis-conducts for which empl’s LIABLE FOR DISCI. ACTION -100 points. Appt.Order.20 t&c-for Skilled & 30 for Suprvsrs & above (Pl.check t&c in ur A.O, S.O.etc.)- Effect of Non- inclusion.

==============

4. LEAVE RULES:

=========

HRM to make Leave Rules keeping Co.’s interest, Complying Factories, S&CE.Act, Empl’s interest & similar Cos. in the area.

I CAN provide ALL Rules+ Forms for

=========

SHORT & LONG LEAVE,

W-Off, Extra Work, Co-Off Rules, Appn.& Regr

M.B. Rules, Appn. & Pay Forms,

P.L. Rules, Appn.to Encash & Pay - Forms



Most empl’s try to save Leave (& he must save since that is what he get - as Encashment when he leave job).

When emply’ suddenly go due to urgency & return after 3-4 days, How to adjust/save his W-O?

Today, HRM is blamed for Not making Rules; though Rules exist to protect Interest of Co. & workers.

5.PERSONAL INFN. CHANGES NOTICE -P.I.C.N.-FORM. ============



Most HR Dept. have Per.Files on all empl’s. Still,

many empl’s current Infn. is missing when HOD wants them; i.e.



1. Present Address to send Notice to X,

2. Mobile No. would have changed to contact X

3. Nominees detls. to Notify accident etc.

4. Nominees detls. to send payment of deceased X

5. To know Marital / dependents detls,

6. To verify latest Addnl. Qlfcn. etc.,



As the above infn. have changed after giving Ist BIO-DATA -while joining, these infn. can be collected by Dec. using above Form to update HR&MIS to Promote, give S.I./A.I., Transfer etc.,



6. ABSENT NOTIFICATION FORM - A.N.F.

=========

Absenteeism is becoming a serious problem in some Cos. HRM is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify it as void. Pl. check for SAMPLE CIRCULAR + FORM in the 50 LIST for Adoption.



====================================



Most Cos. Hire Experts & give Training; to infuse new Blood / SHARE Exp. to existing Officers & pay as T&D Expense. Training helps to solve most HR problems.



Pl.SMS ur MailId to send List of

42 Imp. Rules+ Forms&150 Policies TO SET UP H.R.Dept.- from the scratch; to solve most HR Problems--

=======================================

-Provided to Cos. where NO HR/Per. Dept./Per.File existed;, NO Co.Appn, Appt.Order, S.O., Leave & Service Rules, ISO, Other Forms existed to Regularise Services of Empl’s. working for many years;

KINDLY “ IDENTIFY & SELECT SPECIFIC RP&F U Need” from the e List to retrieve from 4000 Files & 200 Folders.



As Ur SPECIFIC NEED can vary; OPTION is given Below to CHOOSE.



I can provide 5 Files at 1 time with R.P.& F. + ONLINE GUIDANCE.



1. on Subjects like PA, OD, OP, GP, VP, TA, LTA, MB, Co-Off, Grading, Resignation, Exit Interview/ Procedures, Clearance Certificate, F.S. etc.



2. SHORT & LONG LEAVE Rules, P.L. - Encash, Appn. Form, MB Rules, FORMS, Co.Off Rules + Appn. Forms, Clubbing, W-Off, L.W.O.P., S.O. with Appn., Certification Procedures, Letrs to Labr.Commr., List of DUTIES, MIS-CONDUCT, A.O, Essential Services, All Service Rules, Forms, Bonds, Contracts, Agreements etc.

I hope; My RP&F is easy to Adopt in ur HR works . U will get Ready to use RP&F - Soft copy of HR Expert & help GROW HR Consultancy to Benefit all HR & Other Mgrs. who have to get their work done thru empl’s.

Due to sudden Closure of our Co.in 2013, I + my HR Asst. developed Consultancy to pay rent etc., Pl.consider our Consultancy & I will send all ur HR needs.

REQUEST: Pl. peruse the RP&F & revert for any query. & also refer me to ur Friends.



Kind Regards.



C.Neyimkhan,HR Consultant(Ex-AGM-HR&A)

Ph: 09535470460- E-Mailid:

HOSPET / BENGALURU

Ex-Member, NIPM, Calcutta, Ex- Tr.-Member, I.I.M., B;luru.

Languages known: Kannada, Tamil, Telugu, Malayalam + Hindi & English



Abrevations used to save space.
hello to every one
I am a coordinator of construction firm. we are planed of a systematic way. Means we want post name with responsibility in descending order. Our firm 6 year old and in CR turn over, every employee do work hard but not in a systematic. Someone please help me in this regard. If you have the format, chart etc. please post the same.
Thank you,
E-mail =
Gaurav Atri
7082381617
CATEGORISING / GRADING of every Employee’s Designations

=================================================

in an Organisation (Mfg. Cos. like Steel, Cement, Sugar, Power, Chemical, Mines etc.,) from Kalassi / Peon to GM/Director (i.e., Un-skilled to Top Management) is an important task of HR Dept. tobe done in such a way that; every employees Qualifications, experiences, salaries are taken into account to avoid complaints of anomaly; later.

Also, it needs tobe done carefully and properly that the HR Dept. staff who have to prepare Annual Increments, Promotions, Fitment, Benefits etc., are able to understand the Categorisation so as to programme it in Computer while making such Increment, Promotion Orders with Salary, Grades for hundreds of employees at a stretch .

The Salaries are tobe fixed for each Grade/Category/Level in such a way that employees in each Grade has a particular Salary range/Band in a descending order say; from Director/President/GM down to the Un-skilled employees. Such Categorisation helps HR Dept. to group all employees from Un-SK to Top Mngmnt. and it is required for HR, MIS Reports & for filing various Returns. It will also help Interview Panel Members to fix a particular Candidate’s Designation in a Grade matching to his salary & post for the new candidate considering his Qlfn. & exp. vis-à-vis existing employees in the particular Dept. to which the new employee is going to join / recruited; to reduce heart-burning and anomaly problems among existing employees; later.

Salary fixation for each employee (based on Qlfcn, exp. & job knowledge) is one aspect whereas fixing his Grade/Category depending upon his Designation is another.

The 2nd one i.e., Categorising/ grading/ grouping say hundreds of employees into various grades is important to say how many Engrs./Officers, Managers, Mechanics are there at a particular time.

State Laws require Filing of Returns to District Industries Centre where Company has to state how many people of the Particular State are given jobs;- Category wise, say Skilled, Supervisor etc., In Karnataka, every Company has to file KANNADIGAS Report to provide statistics of Kannadigas employed in Manpower Returns - Quarterly.

I have attempted to Categorise all employee’s Designations as under (from Un-SK to Top Management in XL format) so that every employees Designations in a Labour Intesive Units like Steel Plants; are covered in Ascending Order; starting with

Un-Skilled,

Semi-Skilled &

Skilled . . (Skilled - 4 Levels like Jr.Optr, Asst.Optr, Optr & Sr.Optr.)

Supervisory (4 Levels - Jr.Supervisr, Asst.Supervsr, Supervisr & Sr.Supervisor)

Officers/Engineers (4 Levels – Jr.Offcr/Jr.Engr, Asst.Ofcr/Engr, Ofcr/Engr, Sr.O/Sr.Engr.)

Managers (7 levels – Jr.Manager, Asst.Mgr, Dy.Mgr, Manager, Sr.Manager, AGM & DGM)

TOP MANAGEMENT (5 Levels – GM, SR.GM, CGM, AVP, VP, CEO, PRESIDENT, DIRECTOR, E.D. & M.D.)

However, the Categorisation, Levels & Designations could be changed as per the Organisations needs & nature of Industries. The position is different in Software & other type of Companies compared to Steel, Cement etc., as stated above.

As Salaries will vary depending upon Qlfcn, Exp. location, type of industry etc., the same can be grouped to fit into appropriate grades. I request respectable Cite HR Senior Members to peruse the above and provide us (in a Statement Form) the types of Categorization / Grading of all Designations available for the benefit of HR Managers who need such List not only for their works but also, for convincing Senior Management whenever Salary, Designations are to be reviewed / re-fixed. Even though there may not be fixed norms for revision or change, it will be helpful if Seniors provide some Formats / Guidelines which will be showing Categorization / Grading of all designations for better presentation as there is a saying; something is better than nothing. This will help many HR Professionals just like Standard quotations / specifications, Comparative statements with rates for products like Car, bike etc.

I request Cite HR Sr. Members to give more information on this important aspect of HR to help HR Managers for categorizing the employees for various HR & MIS Reports and also for Recruitment teams.

Yours sincerely,

C.Neyimkhan, HR Consultant, Ex:AGM (HR&A), HOSPET, Karnataka, - Mobile - 9535470460 EMail:

30.3.2017

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