Kumaran Praveen
Hr-trainee
Sneha Joshi
Hr Manager
Loginmiraclelogistics
Asso.prof.(commerce & Management) Pg
+2 Others

Dear All,
I need urgent guidance from the seniors.
In the Organization , i am working , we have a very lengthy increment procedure.
We give 7% inflation amount to all employees at the time of increment.
Secondly , we compare the salaries of people same designations and give " Correction Amount" to equate the salaries. This is a very lengthy procedure to present to management every time for approvals.
Thirdly comes the performance rating.
My query is - is it necessary to compare salaries each time increment is given ?
Salary is offered on the last salary drawn, someone's last salary may be 10 K and someone's may be 13 K for eg., then there may be some situations that some employee is hired by offering higher salary, some employee may be excellent so as to offer high salary to make him join the company.
Kindly guide should this practice of comparing salaries be continued ?
Thanks & Regards.
Hi,
It is not necessary to compare salary of people while going for increment it will lead to the position or point where person with good skill get same salary as person having low skills.
Hence the increment should be on last drawn salary of each workmen based on merit or performance without equating the amount or comparing the salary.
This practice also improve your workers performance, satisfaction and involvement level.
With Regards
Mr.Thumbs Up
Dear Alpana, Can I know how you Equate The Salaries of employees? and which mode you are using to comparing it with market trend?
Thanks , Mr. Thumbs Up .
@Sneha...We compare salaries of employees of the same cadre in our organization and then based on performance rating and difference in the salaries, we try to bring the salaries at par of the people of the same cadre.
It is a herculean task done in excel sheet.
Here, it has nothing to do with market trend
Dear Alpna
First of all dont compare the salaries of the employees who are in the same cadre, because salary may be variant based on the skills of the employee and also their performance. and increment should on the performance appraisal score.
The effectiveness of your appraisal systems brings in transparency and also doesnt create bias.
Dear Alpna
The purpose of appraisal system is to differentiate talents on scale of results delivered against the results expected from profile. Now when you compare the salary of 2 employees who may be in same cadre but might have different level of accountability/ deliverable.
Hence when you compare salaries and also then equalize them, i think it is creating contradiction to effectiveness of your appraisal system.
Also note that Salary Fitment is a tool only should be used in special cases.
Regards
Shivang
Precisely, my opinion is, there is no necessity to compare one's salary with the other. Because every one got their present salary (pre-revised) on various parameters which has ultimately provided the base for different salary for those employees despite the fact they all are in the same cadre. Disparity bound to be there which no one can help nor equate them on board. However if your co. policy says every one should be given 7% increase irrespective of their past every one have their increased salary after the increase but still the variations would exist. It's not your purpose to bring every one on par, I presume, but, but if you wanted to maintain the disparity or variances commensurate with their past performances in line with your rating/grading system you have to refix their revised salary in such a way to reflect advantages resulted by the grading appraised. At the same time a comparison with various permutations & combinations on a selective basis may be necessary to rule out undeserved employee( s) do not get undue advantage due to arithmetic. I hope comparison does not lead to complications. In other words right people should right fixation.
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