How Can We Create a Fair Salary Grading System When Raises Seem Random?

Hi friends,

There is no formal salary structure in the company where I work. When a staff member resigns, management decides to increase their salary by 200-1500, depending on each case. Consequently, personnel who have worked for 10 years in the company now earn as much (or as little) as a newcomer with 2-3 years of experience.

I am seeking assistance in establishing a salary grading system. Your comments are welcome.

Thanks,
A Lakshmi

Hi,

I am saddened to learn about such a kind of salary structure. What then is the objective of such a degrading structure? The HR department should start thinking about a motivational structure in line with what the company can afford to give based on performance, rather than just on longevity.

HR Officer Mary Vie Bustamante, Cebu, Philippines

Hi,

I am also in the same situation. One more thing I want to say is that we do not have a proper designation hierarchy.

Hi,

The task which you're planning to take up would be difficult, but not impossible.

- First, try to understand if your changes would be welcomed. Then, plan for it.