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Dear Seniors,
I am currently in process of designing grade and band structure. I need to know how many years on an average an employee stays on one designation?
Also what is the maximum band we can keep for one grade or level?

From India, Pune

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

Hi Chaitrali,
Salary band and structure it all depends 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 salary band and accordingly we had 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 IT Industry.
Grade/Band A - CEO, CFO, VP's
Grade/Band B - General Manager, Deputy GM, Asst. Managers
Grade/Band C - Sr. Executive, Team Leads
Grade/Band E - Executives
Grade/Band F - Semi skilled Labours.
Or this could be done in reverse way also.
Let me know your expectations of all the above.
However , please wait for my senior colleagues for heir replies, as they could bring more light into it.
Ajay Kulkarni

From India, Bangalore

For this, we should first be clear about what is 'grade' and what is 'band'.

Any organisation may require different types of personnel as well as different skills to obtain the organisation 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 organisation 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 is 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 if grades a company can have. A guiding factory 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 organisation 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 practice followed in similar concerns. No thumb rule is possible.

From India, Madras
Cite Contribution

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 . Thats 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

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 depends on the size of the company and the way it operates. The levels of authority and management existing or envisaged 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 form that of others so do not band the CEO with others, have an exclusive band for the CEO.

Companies that take 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 organization views how and where you start a grade does not matter.

One must first list out the current levels of management, executive and non-executives and examine the work done by each, the roles and responsibilities of each position. Please look at grades by position.

A large organization with pan India presence will have a different grade structure from a smaller one city organization, here again 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, AVP's, VP''s, COO 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 that 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. Viz. 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 helpful so that we can progress further on this chapter.



From India, Hyderabad
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