Hi Sneha,
The incrments for employees can be decided based on the follwoing parameters:
Compensation(Salary Hike )of employees would be based on:
A. Company Budget: As decided by the Management
B. Industry Trends : Overall in 2012,IT hikes (India) has been between 8-12%
C. Team Budget allocation : As decided by Management based on Team revenue generation
D. Performance Ratings : Given all other parameters are same: Company Budget,Team Budget,No other salary corrections ,then for same ratings the hikes should be uniform
E. Salary Corrections/Market Corrections : if any
Once you have decided the Min-Max hikes,you have to note that the hikes cannot be same across salary slabs that is employee earning 2-5 lLpa should ger more percentage hike than an employee earning 10-15 LPA
What you can do is: Make grades based on salaries
Grade Payscale
A 0-5 LPA
B 5-8 LPA
C 8-12 LPA
D 12 and Above LPA
Ratings-Level
Salary Level-LPA 5 4 3 2 1
A(0-5 LPA)-Percentage Hike in Salary 15 13 10% 0 0
B(5-8 LPA) Percentage Hike in Salary 13 10 8 0 0
C(8-12 LPA) Percentage Hike in Salary 10 8 6 0 0
I did this and it helped me ,I hope this helps you as well.
Regards,
Prathiba Nair