hi everybody, is there is any formula to calculate the exact salary for employees in a band width. Eg. A graduate + 10 yrs experience gets 5000 - 8000(under broadband) . But what exactly wud he get .
From India
From India
hi there , anybody who can solve the above query kindly revert with your valuable information
From India
From India
Greetings, Are you broadbanding the salary within your organization ? You need to set the minimax . Regards, (Cite Contribution)
From India, Mumbai
1858From India, Mumbai
thankyou so much . The minimax would merely mean the minimum and maximum an employee in a particular grade would get. Assuming i have already set that what criteria would help decide the specific and most rational figure .
From India
From India
Hi,
While setting the minimum and maximum for a salary band, you also need to set the increment grade for each band. Once you have that, you can easily decide what would be the salary of each employee based on his experience / tenure with the organization.
For example 5000-500-8000.
This would mean the employee within the salary band of 5000-8000 would receive an increment of Rs. 500 once his/her salary touches Rs. 5000 and would continue to receive the same until he/she reaches Rs. 8000 salary.
The period of increment - 6 months, one year, or so on should also be included when decided salary bands.
Regards,
Gaurang
From India, Ahmadabad
While setting the minimum and maximum for a salary band, you also need to set the increment grade for each band. Once you have that, you can easily decide what would be the salary of each employee based on his experience / tenure with the organization.
For example 5000-500-8000.
This would mean the employee within the salary band of 5000-8000 would receive an increment of Rs. 500 once his/her salary touches Rs. 5000 and would continue to receive the same until he/she reaches Rs. 8000 salary.
The period of increment - 6 months, one year, or so on should also be included when decided salary bands.
Regards,
Gaurang
From India, Ahmadabad
Hi!
There is no specific formula that will give you a Broadband Salary Structure.
Designing salary structures, whether "broadbands" or "ordinary bands", need a lot of considerations and skills on the part of the HR professional. It cannot be discussed and learned in one or few exchange of posts in this site.
Broadband, in the compen lingo, is the use of fewer job grades in the design of salary structure. Hence, from the ordinary 20 job grades, some companies would simply limit their salary structure to around 5-10 job grades. This is for reason of simplicity and ease in the administration of salaries.
The design of salary structures and the rate ranges of each job grade or band (and the entire JG or bands) are better done with the basic compensation principles in your mind and a current market data in your hand. Without them, I am sure you'll only be putting rates that have no meaning or relevance to an organization.
Indeed, it's always best to consult a professional on this matter. I just designed the salary structure for the client of my business partner in the UAE, and would be designing another one this month in KSA.
We can help you too. Just call us (anytime) ---- if you have budget!
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
From Philippines, Parañaque
There is no specific formula that will give you a Broadband Salary Structure.
Designing salary structures, whether "broadbands" or "ordinary bands", need a lot of considerations and skills on the part of the HR professional. It cannot be discussed and learned in one or few exchange of posts in this site.
Broadband, in the compen lingo, is the use of fewer job grades in the design of salary structure. Hence, from the ordinary 20 job grades, some companies would simply limit their salary structure to around 5-10 job grades. This is for reason of simplicity and ease in the administration of salaries.
The design of salary structures and the rate ranges of each job grade or band (and the entire JG or bands) are better done with the basic compensation principles in your mind and a current market data in your hand. Without them, I am sure you'll only be putting rates that have no meaning or relevance to an organization.
Indeed, it's always best to consult a professional on this matter. I just designed the salary structure for the client of my business partner in the UAE, and would be designing another one this month in KSA.
We can help you too. Just call us (anytime) ---- if you have budget!
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
From Philippines, Parañaque
Dear Ed Llarena, Jr.
Thanks for giving a perfect reply. I agree with the points in your post, namely :
- there is no specific formula;
- Broad-banding means reducing the number of salary grades;
- salary structures are organization specific, although based on current job market trends;
- its a highly specialized job.
Warm regards.
From India, Delhi
Thanks for giving a perfect reply. I agree with the points in your post, namely :
- there is no specific formula;
- Broad-banding means reducing the number of salary grades;
- salary structures are organization specific, although based on current job market trends;
- its a highly specialized job.
Warm regards.
From India, Delhi
Dear Ed Llarena, Jr.,
I too agree with you totally on the points you have mentioned. Setting up salary bands is best left to an expert and is generally a process undertaken to reduce and simply the salary grades of a company.
@Crystal - I think you should heed our senior colleague's advice and try and find an expert in the field to help you out.
Regards,
Gaurang
From India, Ahmadabad
I too agree with you totally on the points you have mentioned. Setting up salary bands is best left to an expert and is generally a process undertaken to reduce and simply the salary grades of a company.
@Crystal - I think you should heed our senior colleague's advice and try and find an expert in the field to help you out.
Regards,
Gaurang
From India, Ahmadabad
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CB- Salary Structure Formula.xls