Dear Sir, I would like to know about Salary normalization and its methods. Regards. Uday
From India, Mumbai
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From India, Mumbai
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Hi Uday,
The salary normalization is intended to equalize the pay levels of different grades of employees. This can be done based on the number of years of experience, skill sets, or work output. A band or class, similar to the grading method, needs to be prepared for each salary grade, and the compensation should then stay within the designed salary grade. Though used mostly in the government sector, it was once tried by IBM for its employees, which didn't go as well as planned. You can access the case study of IBM at http://www.vault.com/messages/IBM_Bu...es1298375.html.
Thank you!
From India, Ahmadabad
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35The salary normalization is intended to equalize the pay levels of different grades of employees. This can be done based on the number of years of experience, skill sets, or work output. A band or class, similar to the grading method, needs to be prepared for each salary grade, and the compensation should then stay within the designed salary grade. Though used mostly in the government sector, it was once tried by IBM for its employees, which didn't go as well as planned. You can access the case study of IBM at http://www.vault.com/messages/IBM_Bu...es1298375.html.
Thank you!
From India, Ahmadabad
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Salary & Compensation Guidelines.zip