Formula To Calculate Salary Of Employees In Broadband

Hi everybody,

Is there any formula to calculate the exact salary for employees in a bandwidth? For example, a graduate with 10 years of experience gets $5000 - $8000 (under broadband). But what exactly would he get?

Hi there, anybody who can solve the above query, kindly revert with your valuable information.

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Hi there,

Anybody who can solve the above query, kindly revert with your valuable information.

Greetings,

Are you considering implementing salary banding within your organization? You need to establish the minimum and maximum ranges.

Regards,
(Cite Contribution)

Thank you so much. The minimax would merely mean the minimum and maximum an employee in a particular grade would get. Assuming I have already set that, what criteria would help decide the specific and most rational figure.

Hi,

While setting the minimum and maximum for a salary band, you also need to set the increment grade for each band. Once you have that, you can easily decide what would be the salary of each employee based on his or her experience/tenure with the organization.

For example, 5000-500-8000. This would mean the employee within the salary band of 5000-8000 would receive an increment of Rs. 500 once his or her salary touches Rs. 5000 and would continue to receive the same until he or she reaches Rs. 8000 in salary.

The period of the increment - 6 months, one year, or so on should also be included when deciding salary bands.

Regards, Gaurang

Hi!

There is no specific formula that will give you a Broadband Salary Structure.

Designing salary structures, whether "broadbands" or "ordinary bands," needs a lot of considerations and skills on the part of the HR professional. It cannot be discussed and learned in one or a few exchanges of posts on this site.

Broadband, in the compensation lingo, is the use of fewer job grades in the design of salary structure. Hence, from the ordinary 20 job grades, some companies would simply limit their salary structure to around 5-10 job grades. This is for the reason of simplicity and ease in the administration of salaries.

The design of salary structures and the rate ranges of each job grade or band (and the entire JG or bands) are better done with the basic compensation principles in your mind and current market data in your hand. Without them, I am sure you'll only be putting rates that have no meaning or relevance to an organization.

Indeed, it's always best to consult a professional on this matter. I just designed the salary structure for the client of my business partner in the UAE and will be designing another one this month in KSA.

We can help you too. Just call us (anytime) ---- if you have the budget!

Ed Llarena, Jr.

Managing Partner

Emilla Consulting

Dear Ed Llarena, Jr.,

Thank you for providing a perfect reply. I agree with the points in your post, namely:
- There is no specific formula.
- Broad-banding means reducing the number of salary grades.
- Salary structures are organization-specific, although based on current job market trends.
- It's a highly specialized job.

Warm regards.

Dear Ed Llarena, Jr.,

I too agree with you totally on the points you have mentioned. Setting up salary bands is best left to an expert and is generally a process undertaken to reduce and simplify the salary grades of a company.

@Crystal - I think you should heed our senior colleague's advice and try to find an expert in the field to help you out.

Regards,
Gaurang

Thank you Raj Kumar, Gaurang, and Ed Llareng Jr. Thanks for the input and for not letting this post die down. Also, I'm still working on this project. All are invited to give more inputs.