Grades & Salaries

Customer Profile: A medium scale manufacture of specialized process equipment.

Problem: The client had grown rapidly over the last few years which had led to a lot of impulsive recruitment which was driven by immediate business needs. When these recruitments were done, these were driven more with the need to execute urgent projects leading to a mismatch between what was the compensation for the similar skilled people across the company. It had led to a lot of dissatisfaction between like skilled employees performing similar roles but having a difference in the compensation that was offered to them.

Solution: We worked very closely with the organization to understand the various departments and based on the understanding of the roles we divided the organization roles into three categories – Technical, Management & Support and within each category we built a system of grades. The grades were so defined that it could easily be possible to match each person in the organization to a particular job family and into a particular grade. Once this was done, an elaborate compensation mapping of the grades was done so that for each role there was a salary band which could easily be mapped and for each role a clearly listed out designation was also created so that there was no ambiguity in the entire organization on the role, the grade, and the mapping of the salary which led to a standardization across the company. The same structure was also used while sending out requisitions for future recruitments in order to avoid an ill fitting compensation structure in the organization.

Benefit: Implementation of this brought in a lot of clarity into the expectations of the management from the employees. The compensation differences were reduced over a period of time leading to a clarity on what were the expectations from a particular role and expectations also on the employees side about the higher level of responsibilities which would need to be performed in return for a higher expectation of salary.