Creating a Grade Pay System in a Startup: How Do I Standardize Salaries Step by Step?

I am working in a startup IT company. Most of the hiring was done before I joined. Employees are offered a spot CTC. Now, I have to create a grade pay and standardize employee salaries. Could you please suggest how to do this step by step?

Hi Shreyasi, such things happen in small, non-corporate entities. While it's okay for the Proprietor/Partners, CEO to have the authority and liberty to fix the remuneration and perks of employees at their will, as the firm grows, it becomes necessary that proper policies are evolved, framed, and approved for implementation in order to bring professionalism to administration. In these circumstances, you'll have your hands full to conceive, evolve, formulate, and put in place a certain framework for the good of the organization. You'll gain good experience and responsibilities side by side in your endeavor. Friends in CiteHR voluntarily help and guide you for the proper approach to achieve.

To start with

1. Prepare an organization chart, the existing one as per hierarchy along with EXISTING remuneration, in a pyramid model. This should also clearly show their duties and responsibilities, alongside the JD (job description), qualification/experience, etc.

2. Study the structure of similar organizations in your own lines, ascertain other details like designation, remuneration, JD, responsibilities, etc.

3. Compare both juxtaposed, and when done, you'll know where you are; and note down what is all required to catch up with others, shortlist where to tinker with.

4. Prepare a combined Organization chart (revised and to be proposed) incorporating what you have noted down. Now you are ready with your own proposed chart comprising all aspects, discuss with your HR Manager, who in turn will inform other HoDs, promoters, and get it finalized and approved. There you'll have a fresh all-in-organization chart for you/everyone to follow.

There are a few useful links on your right of the screen that will provide certain helpful attachments, use them.

If you need any assistance, continue this thread.

In a growing proprietorship company like ours, we do not have a structured pay system. Our head office is in Mumbai with overseas operations, and so far, the salaries offered at the time of joining are based on the last drawn pay of the employee. Hikes offered to date have been a flat lump sum based on the overall performance of the company and the employee. However, as the company is growing, the plan now is to slightly structure the system and introduce grading systems from executive to senior-level staff. A brief job description was prepared for the Mumbai staff a few years ago, which needs to be revised. Our management does not want to design a complex system for offering hikes/promotions; instead, they prefer a simple one where promotions are only offered to deserving individuals. To motivate others in the same grade, perks/incentives/allowances like travel, etc., can be offered.

Perks and Allowances for Junior Levels

I would like to know a few perks/allowances offered as per the current trends and norms even at a junior level?

Regards, MHN