How Do I Design Salary Slabs for Various Roles in My Company? Urgent Help Needed!

Hello,

This is Sonal. I need help in designing salary slabs for my company. The company is having the following designations: Manager-IT, System Administrator, Asst. Manager-HR, HR Executive, Software Engineer, Solutions Consultant, Technical Consultant, Project Lead, Marketing Executive, Research Trainee-Marketing, Asst. Manager Finance, Finance Executive.

Please let me know as I am having an urgent requirement for the same.

Regards,
Sonal

Dear Sonal,

If you can send me the decided CTC for every designation, as you know the CTC is decided based on the responsibilities and the financial structure of the company, then I can send you the breakups. Every organization has its own slabs depending on the financial size of the company. Or you can send me the size and structure of the company, and then I will create the slabs for each designation.

Regards,
Mahavir Singh
hrdonear@gmail.com

Dear Sonal,

As suggested by Mahavir, you need to categorize the designations according to seniority. Based on the seniority, you need to mention the average CTC against each designation. This will give you a mean of the scale. By using statistical tools, you can reach a solution for creating salary slabs. If you require more details, please revert to me.

Regards,
Sharad

I have completed my MBA in HR (Regular) at SRM University. I find myself good at communication as well. Some HR professionals were impressed with me during the interviews, yet I could not secure a job for myself. They attribute it to the recession. Additionally, I completed a certificate course in Human Resource Management at Ma Foi Academy. I have attached my CV; please review it for any mistakes. If I pursue a career in recruitment, do I have to stay in recruitment for the rest of my life?

Dear Sonal,

For the above purpose, firstly, you have to divide the different designations into slabs. Like one slab is for executives, one for Asst. Managers, and for managers. Only after this, one can suggest a salary slab based on your organization's CTC structure.

Regards, Lokesh Sharma

Dear Sonal,

Not only slabs, you'll have to make a tentative organization chart indicating peer positions in different functional areas; as you have designations in Finance, HR, Sales/Marketing, and technical (S/W) positions as well. You'll have to decide whether Assistant Managers in HR and Finance, Sales, and S/W development will have the same salary structure or a differential salary structure.

Compensation Management is not just listing out designations level-wise and putting some slab against each level. You'll have to be clear about many things; for example, how would you compensate a Chartered Accountant with 3 years of experience, an MBA-HR with the same experience, and a B.Tech (S/W) with the same experience? Even in the Technical area, you'll have to be clear on how you intend to fix the salary for a graduate from IIT and one from an REC with different experiences with reputed companies.

Overall, there should be a sense of equity and fairness; else you'll find people leaving every three months after joining.

Apart from the above, every company has its ways of breaking up the salary components. Compensation management is very creative; just like an architect designing a home for every plot size and owner's profile and requirement; there can be a number of solutions.

Regards.

Dear Sonal,

Salary structure differs from company to company. I suggest you do the following:

1. Prepare an Org. chart with levels under each dept. & head count.
2. Prepare a budget for overall cost under the salary head.
3. Do a competitor's analysis and find out how much your competitors are paying for similar skill sets and if you can afford the same or slightly more.
4. Define whether you want the salary to be skill-based or performance-based. If skill-based, keep the fixed components high with low variables and in case you want it to be performance-based, keep high variable with lower fixed CTC.

This process will help you to arrive at accurate figures.

Best Regards,
Dishank