Legal Guidelines for Salary Fixation
As far as legal guidelines are concerned, you have to check the minimum wages prevailing in your state. Other than this, market analysis and comparison of prevailing trends have to be done through various methods such as surveys, data collection through job portals or consultants, etc. Data collection should be from similar types of industries (Industry type here means the nature of business, location, maturity in processes, commencement time, etc).
Key Things to Remember While Conducting a Survey
- Position Paralleling: Understand what each position means in each organization; consider the role of that particular position.
- The number of grades and hierarchy must be analyzed.
While gathering the compensation band details, data for other fringe benefits must be collected as sometimes it is a major part of compensation packages. After obtaining the compensation details of various industries, the median method could be used to evaluate the market median compensation. Finally, you can calculate your compensation band near the market median values.
Thanks & Regards,
Parul Gupta