Salary, Grade, and Designation Matrix: How Do You Connect the Dots in HR?

Hi,

I am RBP, currently working as an HR generalist. Could anyone share with me your ideas on how to develop a matrix to relate salary, grade, and designation?

Regards,
RBP

Hi RBP,

There is no single thumb rule for correlating the two. First, it varies from industry to industry and from corporation to corporation. However, by having a general knowledge, you can easily do what is necessary.

Regards,
Gopal

Hi,

Grade is used as an internal tool for the job description with skill level, experience, and proficiency in the job. Secondly, designation is a showcase which cannot be directly correlated to salary. At certain points in time, the salary may be lower as this is essentially the company's way of presenting itself, which may or may not be related to salary in most cases.

Thirdly, salary depends on experience and the financial capability of the company in relation to benchmarking and comparison with other industries.

Regards,
CT

Hi,

There is absolutely no thumb rule. But following decisions are the premise of any system:

1. You can have a 2 * 2, 2*3, 3*3, and so on matrix. Like you can have a system whereby each salary level is applicable to only one designation, or one set of designations.

2. Similarly, you can have a system that applies to operations and staff. In the sense that you have two different structures under the same level for technical people and support people.

3. If you are looking at developing a basic system, here are some tips:

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Regards,
Preeti.