How Should We Define Grades in Our IT Company Without Causing Grievances?

Hi Seniors,

I am working with an IT company in the HR department. We are in the process of implementing the gradation system. I am seeking input from you on how we should go about it.

There are mainly three departments: Engineering, Operations (HR, Admin, & Accounts), and Marketing. We have various hierarchies in the organization.

In engineering, we have the following hierarchy: Associate Software Eng. (SE) - SE - Sr. SE - System Analyst (SA) - Sr. SA - Team Leader - Project Manager - Consultant - Sr. Consultant - VP Eng.

In Marketing, we have a relatively smaller hierarchy: Associate Marketing Exec - Sr. Marketing Exec - Marketing Exec - Asst. Manager Marketing - Manager Marketing.

Similar hierarchy exists in Operations as well.

My query is how to define the grades - based on roles/responsibilities, experience, or salary? Base on salary would not be feasible because in the IT industry, it may be possible that the subordinate earns more than their reporting boss. Additionally, heads of other departments may draw salaries similar to those lower in the Engineering department. This may create grievances among the HODs if we base grades on salary. Moreover, it would be cumbersome to have department-wise grades.

Please advise on how to tackle this situation.

Regards,

Archana

Hi,

Gradation is a big subject. I will try to briefly explain whatever I know about the basics.

Point 1

All organizations, in general, have 5 levels:
- Visionaries
- Strategists
- Operational Heads/Specialists
- Coordinators
- Doers

Regardless of how you designate them, you will ultimately encounter these 5 levels.

Point 2

Identify all employees in terms of roles as classified here.

Point 3

In each level, you can have three grades based on seniority, performance, or qualification. For example:
- Level 1: Directors, CEO, COO, CFO
- Level 2: Vice Presidents, General Managers, AVPs
- Level 3: Group Managers, Divisional Managers, Senior Managers
- Level 4: Senior Managers, Managers, Team Leads, Heads
- Level 5: Engineers, Software Professionals, Testing Professionals

This is just to provide an idea. Every grade will have defined benefits. This is just an outline. More experienced individuals may shed light on this.

Siva