Dear All,
I have joined the new organization 3 months ago as HR Manager. I want to make changes in the existing salary system. The issue is that presently they are giving various grades based on qualifications, experience, etc., but it is not being followed properly. I want to make it simple and transparent. Making changes in the existing system is very difficult and complicated. So please suggest a new process or guide me on how to solve the existing one.
Please reply early.
Sanika
From India, Mumbai
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1I have joined the new organization 3 months ago as HR Manager. I want to make changes in the existing salary system. The issue is that presently they are giving various grades based on qualifications, experience, etc., but it is not being followed properly. I want to make it simple and transparent. Making changes in the existing system is very difficult and complicated. So please suggest a new process or guide me on how to solve the existing one.
Please reply early.
Sanika
From India, Mumbai
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hi sanika how r u hope u r fine .r u married? how is life going on? reply.how many years of exp. u have in HR field? reply
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Dear Sanika,
The first thing is that if employees are on the payroll, you can't make any changes to their salary. However, if you remove employees one by one from their service and then rehire them, you can make changes accordingly. On the other hand, if employees are not on the payroll, you can make changes as you wish.
For any further questions, feel free to write to me.
From India, Delhi
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The first thing is that if employees are on the payroll, you can't make any changes to their salary. However, if you remove employees one by one from their service and then rehire them, you can make changes accordingly. On the other hand, if employees are not on the payroll, you can make changes as you wish.
For any further questions, feel free to write to me.
From India, Delhi
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Mr. Pon is right.
Dear AFEROSE,
If you are part of the HR Department, then change your thinking. This is not the right place for making these types of comments. Here, you can discuss your HR-related problems.
Hope you understand.
From India, Delhi
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Dear AFEROSE,
If you are part of the HR Department, then change your thinking. This is not the right place for making these types of comments. Here, you can discuss your HR-related problems.
Hope you understand.
From India, Delhi
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Hi Sanika,
First, you must make your plan on paper on how you want to change the salary structure that involves basic pay, DA, HRA, conveyance, city allowance, education allowances, remote allowances, production bonus, bonus, gratuity, medical benefits, LTA, etc. There are various allowances according to the company's needs. Then, you should discuss this plan with your management and try to convince them:
1. For a smooth salary structure, first, establish the designation levels.
2. Then decide the grade levels based on qualifications and work experience after discussing with management.
3. Next, determine the percentage (%) of CTC for basic pay, HRA, and other allowances.
By drawing on your past experience, you can create the new structure.
Rajiv Singh
From India
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First, you must make your plan on paper on how you want to change the salary structure that involves basic pay, DA, HRA, conveyance, city allowance, education allowances, remote allowances, production bonus, bonus, gratuity, medical benefits, LTA, etc. There are various allowances according to the company's needs. Then, you should discuss this plan with your management and try to convince them:
1. For a smooth salary structure, first, establish the designation levels.
2. Then decide the grade levels based on qualifications and work experience after discussing with management.
3. Next, determine the percentage (%) of CTC for basic pay, HRA, and other allowances.
By drawing on your past experience, you can create the new structure.
Rajiv Singh
From India
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Hello AFEROSE,
This is a professional forum to discuss HR-related issues. This forum is not the place for individuals like you. Please mind your words.
For employees in roles, it is not advisable to make changes. Even employees may feel uncomfortable with changes in the HR system. Ensure that they are not adversely affected by the changes you are planning.
Cheers
From India, Bangalore
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This is a professional forum to discuss HR-related issues. This forum is not the place for individuals like you. Please mind your words.
For employees in roles, it is not advisable to make changes. Even employees may feel uncomfortable with changes in the HR system. Ensure that they are not adversely affected by the changes you are planning.
Cheers
From India, Bangalore
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Just a quick one. Most of the members observed that a change in pay structure for an existing employee is not suggested as it may translate into a dispute. I am not ready to buy this, please. If the CTC is assured and communicated to concerned employees regarding the objective and benefits of the modification, then surely, employees with a rational mindset would welcome the changes. It all depends on how efficiently the project is handled.
Any takers?
Rgds
From India, Calcutta
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Any takers?
Rgds
From India, Calcutta
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Hello Sanika,
First, take into consideration that you can change the grades or designations suitably after consulting with management and employees. However, be careful when making any changes in the existing salary system. You cannot make any modifications to the basic pay + VDA, but adjustments can be made to allowances such as special allowance, etc.
I hope this information is helpful to you.
Regards,
Rajeev Dixit
From India, Bangalore
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First, take into consideration that you can change the grades or designations suitably after consulting with management and employees. However, be careful when making any changes in the existing salary system. You cannot make any modifications to the basic pay + VDA, but adjustments can be made to allowances such as special allowance, etc.
I hope this information is helpful to you.
Regards,
Rajeev Dixit
From India, Bangalore
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hi sanika your question is related with salary structure so you can take advise with your company lab law consultant they will guide you better than us Thanks & Regards Husein
From India, Aurangabad
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From India, Aurangabad
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Dear Snika, First you check which components employee gets the I. TAX benefit. Accordingly you change the salary structure. Regards, Vijay Bhandari
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Dear Respected members,
In my opinion best approach to an issue like this before altering organization structure and ensuring that existing employees are not affected by it a research on existing educational levels in the organization is done, and outlined and grouped also take into consideration years of experience they have
Table 1 in Attachment
Irrespective to what the designation you give which is considered as a label and it differs from organization to another which is not that significant. Its always wise to have 2 a separate table for basic salary and allowances, its also wise to have 3 salary levels, Entry Level, Middle Point & roof Or high end VS Grades.
Table 2 Attachment
when you do the allowance tie it to the Grade You Give
Table 3 Attachment
Once you have done this then you can work on the designation “labels”
Depending on your approach you can give them any label
• Consider education & experience
• Consider Professionalism “what are they good at or specialized in” labels in may include
Specialist, Professional, Engineer, Manager, Executive, Director, Assist, Semi Professional.
You need to consider the percentage in difference between a bachelor with 2 years experience and the one with 5 and the one with 10 years. Or a Master holder with 1 years experience as etc.
This is where the 3 segments of basic salary comes handy, the maximum part will tell you what is you end limit of that grade.
Do consider the fact that employees may require to be given increment on to their basic salary so you need to take that in to account
Once all that is done and you know who is placed where then you can either upgrade some employee “basic Salary or allowance, or change their designation.
Hope My suggestion Will Help You Get Started its very basic but practicle
From Oman, Muscat
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In my opinion best approach to an issue like this before altering organization structure and ensuring that existing employees are not affected by it a research on existing educational levels in the organization is done, and outlined and grouped also take into consideration years of experience they have
Table 1 in Attachment
Irrespective to what the designation you give which is considered as a label and it differs from organization to another which is not that significant. Its always wise to have 2 a separate table for basic salary and allowances, its also wise to have 3 salary levels, Entry Level, Middle Point & roof Or high end VS Grades.
Table 2 Attachment
when you do the allowance tie it to the Grade You Give
Table 3 Attachment
Once you have done this then you can work on the designation “labels”
Depending on your approach you can give them any label
• Consider education & experience
• Consider Professionalism “what are they good at or specialized in” labels in may include
Specialist, Professional, Engineer, Manager, Executive, Director, Assist, Semi Professional.
You need to consider the percentage in difference between a bachelor with 2 years experience and the one with 5 and the one with 10 years. Or a Master holder with 1 years experience as etc.
This is where the 3 segments of basic salary comes handy, the maximum part will tell you what is you end limit of that grade.
Do consider the fact that employees may require to be given increment on to their basic salary so you need to take that in to account
Once all that is done and you know who is placed where then you can either upgrade some employee “basic Salary or allowance, or change their designation.
Hope My suggestion Will Help You Get Started its very basic but practicle
From Oman, Muscat
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