Hello Shashikanth,
Your answer gave me a smile...:) Thank you so much... yes, ROI and P&L is far important and we had already worked on it.
As i wanted the information of increment ground, thanks for your response on the exact question which i want....
Regards,
Sneha Joshi
From India, Pune
32Your answer gave me a smile...:) Thank you so much... yes, ROI and P&L is far important and we had already worked on it.
As i wanted the information of increment ground, thanks for your response on the exact question which i want....
Regards,
Sneha Joshi
From India, Pune
Hi Sneha,
The incrments for employees can be decided based on the follwoing parameters:
Compensation(Salary Hike )of employees would be based on:
A. Company Budget: As decided by the Management
B. Industry Trends : Overall in 2012,IT hikes (India) has been between 8-12%
C. Team Budget allocation : As decided by Management based on Team revenue generation
D. Performance Ratings : Given all other parameters are same: Company Budget,Team Budget,No other salary corrections ,then for same ratings the hikes should be uniform
E. Salary Corrections/Market Corrections : if any
Once you have decided the Min-Max hikes,you have to note that the hikes cannot be same across salary slabs that is employee earning 2-5 lLpa should ger more percentage hike than an employee earning 10-15 LPA
What you can do is: Make grades based on salaries
Grade Payscale
A 0-5 LPA
B 5-8 LPA
C 8-12 LPA
D 12 and Above LPA
Ratings-Level
Salary Level-LPA 5 4 3 2 1
A(0-5 LPA)-Percentage Hike in Salary 15 13 10% 0 0
B(5-8 LPA) Percentage Hike in Salary 13 10 8 0 0
C(8-12 LPA) Percentage Hike in Salary 10 8 6 0 0
I did this and it helped me ,I hope this helps you as well.
Regards,
Prathiba Nair
From India, Pune
The incrments for employees can be decided based on the follwoing parameters:
Compensation(Salary Hike )of employees would be based on:
A. Company Budget: As decided by the Management
B. Industry Trends : Overall in 2012,IT hikes (India) has been between 8-12%
C. Team Budget allocation : As decided by Management based on Team revenue generation
D. Performance Ratings : Given all other parameters are same: Company Budget,Team Budget,No other salary corrections ,then for same ratings the hikes should be uniform
E. Salary Corrections/Market Corrections : if any
Once you have decided the Min-Max hikes,you have to note that the hikes cannot be same across salary slabs that is employee earning 2-5 lLpa should ger more percentage hike than an employee earning 10-15 LPA
What you can do is: Make grades based on salaries
Grade Payscale
A 0-5 LPA
B 5-8 LPA
C 8-12 LPA
D 12 and Above LPA
Ratings-Level
Salary Level-LPA 5 4 3 2 1
A(0-5 LPA)-Percentage Hike in Salary 15 13 10% 0 0
B(5-8 LPA) Percentage Hike in Salary 13 10 8 0 0
C(8-12 LPA) Percentage Hike in Salary 10 8 6 0 0
I did this and it helped me ,I hope this helps you as well.
Regards,
Prathiba Nair
From India, Pune
Sneha,
Last year info tech companies, specially software gave little or no increments. Mostly it was 3 - 8% for large companies. Only wipro gave more. Some smaller ones gave higher to get people from larger companies
This year also with a larger bench staff the increments are expected to be lower than 5%
Go through the newspapers of the last 3 months and you will get info on various companies and their increment levels.
However, some skillsets re in short supply. You will need to pay them more.
From India, Mumbai
Last year info tech companies, specially software gave little or no increments. Mostly it was 3 - 8% for large companies. Only wipro gave more. Some smaller ones gave higher to get people from larger companies
This year also with a larger bench staff the increments are expected to be lower than 5%
Go through the newspapers of the last 3 months and you will get info on various companies and their increment levels.
However, some skillsets re in short supply. You will need to pay them more.
From India, Mumbai
Hi Sneha,
First check with ur management what percent they have fixed up in the budget for increment in overall salary for the year depending the target & profit. Then check the individual apprisal and their rating. Then you decide the percentage upon their rating and along with the HR & discuss with your management with what you have alloted for individual. The overall increment should match with the budget. It's nothing but cutting a cake and distributing to all. Each individual thinks that he got a big piece than other.
Regards,
Pradeep
From United States, Santa Clara
First check with ur management what percent they have fixed up in the budget for increment in overall salary for the year depending the target & profit. Then check the individual apprisal and their rating. Then you decide the percentage upon their rating and along with the HR & discuss with your management with what you have alloted for individual. The overall increment should match with the budget. It's nothing but cutting a cake and distributing to all. Each individual thinks that he got a big piece than other.
Regards,
Pradeep
From United States, Santa Clara
Dear Sneha Joshi,
1) This World does not run on Flower Garden Theory
2) All Fingers of one hand are not same size, no?
Studying theory is good, talking of Ram Rajya is fine, - but from inception of the world nothing same- humans and nature can not be standardized nor predictable
Variation and Change result in "injustice" to some - this is the only permanent thing
So don't worry about standardization
Best of luck
From India, Hyderabad
1) This World does not run on Flower Garden Theory
2) All Fingers of one hand are not same size, no?
Studying theory is good, talking of Ram Rajya is fine, - but from inception of the world nothing same- humans and nature can not be standardized nor predictable
Variation and Change result in "injustice" to some - this is the only permanent thing
So don't worry about standardization
Best of luck
From India, Hyderabad
Sneha,
I agree with Pratibha for deciding the increment.
In IT industry, human skills is the main ingredient for billing. Hence normally in IT industry the main ingredient for revenue generation is HUMAN SKILLS. Hence 30 to 40% of your revenue should be the overall professional manpower cost which does not include support services like admin, HR, etc.
Regards
T
From India, Hyderabad
I agree with Pratibha for deciding the increment.
In IT industry, human skills is the main ingredient for billing. Hence normally in IT industry the main ingredient for revenue generation is HUMAN SKILLS. Hence 30 to 40% of your revenue should be the overall professional manpower cost which does not include support services like admin, HR, etc.
Regards
T
From India, Hyderabad
Ms. Sneha
This topic has in fact drawn very valuable inputs from the memebers.In my view, you should not attempt to adopt any ideal or national standard.For example, the formulae or standards adopted by the companies in metro IT hubs like Banglore, Hyderabad, Mumbai or Chennai may be higher, having regard to the facts that the size of teh comapnies may be bigger with higher profit margins, competetion is bitter and employment opportunities may be abundant making job hopping easy and thus to retain talent, the comapnies may have to adopt attractive appraisal rating there which their budgets may permit.A small company in a tier -II city cannot wear the same stripes as metro IT companies since those formulae may not be realistic for them. In my view two factors can be considered to influence the decision to fix a realistic formula.
1) Region - where the industry is located and in your case it is pune.
2) Similar sizes industry-
3)Similar budgetary resources -It means the practice adpted in similarsized IT industries located in Pune Region can be taken as a standard that can be realistic for your company.Therwefore, you need to confine your research to pune IT industry.
B.Saikumar
Mumbai
From India, Mumbai
This topic has in fact drawn very valuable inputs from the memebers.In my view, you should not attempt to adopt any ideal or national standard.For example, the formulae or standards adopted by the companies in metro IT hubs like Banglore, Hyderabad, Mumbai or Chennai may be higher, having regard to the facts that the size of teh comapnies may be bigger with higher profit margins, competetion is bitter and employment opportunities may be abundant making job hopping easy and thus to retain talent, the comapnies may have to adopt attractive appraisal rating there which their budgets may permit.A small company in a tier -II city cannot wear the same stripes as metro IT companies since those formulae may not be realistic for them. In my view two factors can be considered to influence the decision to fix a realistic formula.
1) Region - where the industry is located and in your case it is pune.
2) Similar sizes industry-
3)Similar budgetary resources -It means the practice adpted in similarsized IT industries located in Pune Region can be taken as a standard that can be realistic for your company.Therwefore, you need to confine your research to pune IT industry.
B.Saikumar
Mumbai
From India, Mumbai
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