How Can I Resolve Salary Grade Overlap Between High and Low-Level Staff?

Hi all, I'm Bolatito, an accountant from Nigeria. I find this forum very interesting and informative. Please keep up the good work.

I am faced with a task of reviewing my company's salary structure. We presently have a grade structure, but we are faced with a challenge where the high-level staff are clustered at the maximum grade band, and the low-level staff are almost meeting up with them.

Please, how do I resolve this? Is it by reviewing the grade bands, and what happens to benefits attached to these grade bands? Thanks

Can someone please make a comment? I really need an urgent answer. I have been going through articles but kept on having a problem downloading. Please, I am waiting.

Hi,

Could you show us your structure details? I think that after going through your structure, it will be easier to comment or suggest on it. Even though I am not familiar with your structure, I can understand the problems you are facing. There is definitely a solution to it. After reviewing the structure, we can conduct benchmarking.

Santosh Iyer
Email: santosh_iyer79@rediffmail.com

Hi,

I didn't really understand what you are trying to say. If at the maximum grade you have high-level employees, then how come the low-level employees are reaching the same level?

Hi Santosh,

To tell you frankly, what I have understood is that as there was no proper system set, many of the employees (who don't deserve to be at that point) are at a higher cadre. If we consider that his maximum employees are in the Executive cadre and you want a solution for it, we can benchmark that the gradation will start from the Executive cadre, which will definitely bring those at the higher cadre to the lower cadre.

Correct me if I am wrong.

Sush

Hi Santosh,

Thank you for your concern. Please find attached a copy of the structure. I would appreciate your assistance.

I will also send it to your email in case of any possible downloading problems.

Bolatito

Hi Such,

Thank you for your comment. To answer your question on what brought about the gap, there was a time when the gap was significant between the low and high-level employees. Management felt it should be bridged by having a different percentage increment for the two levels during yearly appraisals. The high-level officers get a lower percentage compared with the lower-level employees.

Thanks

Hi Sush/Delhi,

Thanks for your comment. To answer your question on what brought about the gap, there was a time when the gap was significant between the low and high-level employees. The management felt it should be bridged by having a different percentage increment for the two levels during yearly appraisals. The high-level officers get a lower percentage compared with the lower-level employees.

I boldened the word "management" to reply to Sush that truly we may not have a proper system because there is no formal HR in-house.

Thanks

Hi Bolatito,

To tell you frankly, I am a bit confused about your actual problem. Could you please elaborate in detail?

I guess you are right, Santosh.

I just saw the attached file... Boy, the number of salary groups is... I guess the first thing that needs to be done is to bring down the number of groups. You can have a wider range sitting in one group rather than having the current situation. In that way, you will have a clear demarcation as well.

Sush,

As long as Bolatilo doesn't elaborate on the actual problem faced by him, I think we cannot help him. Hope you agree with me.

Hi all, as I said earlier, the grading structure currently in place is causing issues, hence the need for a review. A new employee is assigned to either a low level or high level based on their qualifications and years of experience. The low-level staff range from Level 4 to 10, while the high-level staff are from Level 11 upwards. Consequently, the management's policy of awarding a higher percentage increment to low-level staff during yearly appraisals has almost brought them on par with the high-level staff. What can be done to correct this anomaly, as this is definitely not the norm? Thanks

Hi Blawal,

As I mentioned earlier, the only option here is for you to raise the level. For instance, if the lower level is 4-10 and the higher level is 11 and above, you should eliminate the lower level altogether and establish a new benchmarking system, such as 8-15 for the lower level and 15 and above for the higher level.

Santosh Iyer
Email: santosh_iyer79@rediffmail.com

Hi Santosh,

Thank you for your follow-up and the quick reply. If I understand correctly, it means a complete restructuring of the salary grades. I will work on it and let you know how it goes.

I have a new idea to consider - expanding the bands by broadening the lower and upper limits of each level. This way, we can still accommodate the yearly increment. What do you think about it?

Please let me know your thoughts.

Thank you.