Hi all,
I have a company of 60 employees in India for last 7 years where, we have various departments. Software development. Testing, Support, Sys Admin and BPO.
We wanted to maintain a common salary structure in the company and the confusion started when the developers felt they deserved to be paid more than a BPO department.
Current Salary Structure:
Table 1: Hike percentage after an year
Grade Hike Percentage
Below Expectations 0
Meets Expectations 10 % - 20%
Exceeds Expectations 21% - 30 %
Outstanding Performance 31% - 40 %
Table 2:Hike percentage after year two and onward
Grade Hike Percentage Additional Components
Below Expectations 0 0
Meets Expectations 10% - 20% 0
Exceeds Expectations 21% - 25% Bonus Amount - 30000
Outstanding Performance 26% - 30% Bonus Amount - 50000
*Bonus – Employees will be eligible for bonus after confirmation or in second year of their service.
In case, we hire experienced person, then that person will fall under “Year 2 and onwards” slab of appraisals.
Considering our company is based in Delhi(cost of living is high), and the BPO team is of 20 employees, what salary structure can you all suggest. I have had a look at various website, trying to understand BPO salary hikes, however, it will not be fair to compare to those standards as my company is very small in size.
From India, Gurgaon
I have a company of 60 employees in India for last 7 years where, we have various departments. Software development. Testing, Support, Sys Admin and BPO.
We wanted to maintain a common salary structure in the company and the confusion started when the developers felt they deserved to be paid more than a BPO department.
Current Salary Structure:
Table 1: Hike percentage after an year
Grade Hike Percentage
Below Expectations 0
Meets Expectations 10 % - 20%
Exceeds Expectations 21% - 30 %
Outstanding Performance 31% - 40 %
Table 2:Hike percentage after year two and onward
Grade Hike Percentage Additional Components
Below Expectations 0 0
Meets Expectations 10% - 20% 0
Exceeds Expectations 21% - 25% Bonus Amount - 30000
Outstanding Performance 26% - 30% Bonus Amount - 50000
*Bonus – Employees will be eligible for bonus after confirmation or in second year of their service.
In case, we hire experienced person, then that person will fall under “Year 2 and onwards” slab of appraisals.
Considering our company is based in Delhi(cost of living is high), and the BPO team is of 20 employees, what salary structure can you all suggest. I have had a look at various website, trying to understand BPO salary hikes, however, it will not be fair to compare to those standards as my company is very small in size.
From India, Gurgaon
Hi Palvee
First thing is you need a good peoples' manager :)
And yes, there is always this compensation comparison between employees in any company... Basically I feel that people join BPO's coz they feel there is good pay in that sector, and it all depends. Coz there are companies which provide excellent salaries to development people and there are also companies which provide salaries less than the market rate tot eh employees.
You haven't mentioned what technologies you development team work on and what kind of BPO do you operate, if that is mentioned may be it would be easier to get more apt answers.
Managing people was never easy :) hope you will get the exact figures for your question from our fellow users.... all the best!
From India, Bangalore
3First thing is you need a good peoples' manager :)
And yes, there is always this compensation comparison between employees in any company... Basically I feel that people join BPO's coz they feel there is good pay in that sector, and it all depends. Coz there are companies which provide excellent salaries to development people and there are also companies which provide salaries less than the market rate tot eh employees.
You haven't mentioned what technologies you development team work on and what kind of BPO do you operate, if that is mentioned may be it would be easier to get more apt answers.
Managing people was never easy :) hope you will get the exact figures for your question from our fellow users.... all the best!
From India, Bangalore
Hi Palvee,
I believe you are a part of the management team. Just want to take a quick take on the HR department of your company and how strong the team is, in terms of head count and the experience. Hopefully you will not have a team more than 3 people.
If you have a strong team then, you shall plan for a Compensation Benchmarking, as the percentage you fix is far more than the regular appraisal percentage. I understand that a start ups/SMEs will have a flexibility than a CMMI level organization. However the percentage you fix is above the compensation wave length. If in case the HR team is not very strong in terms of the experience level, then there are agencies who do this CB for different levels. Still I am not very sure about the costing as that would be little expensive.
According to reports the increase across sectors is maximum 12 % for fixed and 16 % for variable. Exclusively for IT sector, it is between 8.9 % and 13.3 %. This is overall report and not specific according to the category of the organization.
You shall also include Fringe Benefits rather than direct salary. That would always help in terms of periodicity. However wish you good luck!
From India, Bangalore
I believe you are a part of the management team. Just want to take a quick take on the HR department of your company and how strong the team is, in terms of head count and the experience. Hopefully you will not have a team more than 3 people.
If you have a strong team then, you shall plan for a Compensation Benchmarking, as the percentage you fix is far more than the regular appraisal percentage. I understand that a start ups/SMEs will have a flexibility than a CMMI level organization. However the percentage you fix is above the compensation wave length. If in case the HR team is not very strong in terms of the experience level, then there are agencies who do this CB for different levels. Still I am not very sure about the costing as that would be little expensive.
According to reports the increase across sectors is maximum 12 % for fixed and 16 % for variable. Exclusively for IT sector, it is between 8.9 % and 13.3 %. This is overall report and not specific according to the category of the organization.
You shall also include Fringe Benefits rather than direct salary. That would always help in terms of periodicity. However wish you good luck!
From India, Bangalore
Dear Palvee,
Without analyzing your operational cost including all expenditure, expected profit to be generated, you cannot derive at salary structure. Keep in mind that, there will be Performance based hike every year besides paying Bonus for Outstanding Employees(optional).
My suggestion is that kindly do not follow any organisations salary structure. You need to define on your own based on financial aspects. You can end up in paying more than whatever you had earned. Due to cost of living, many companies started shifting to tier 2 or tier 3 cities.Operation standards remained same but expenditure has reduced. There are millions unemployed in India. Look out for those who are really in need of job and willing to commit for n number of years.
While recruiting employees for your BPO, do not hire PG's as their expectations are high. Be very specific while hiring interviews candidates. Lookout for recruiting TALENTED UG applicants. Develop their skills and try to retain them minimum for 2 - 3 years.
With profound regards
From India, Chennai
Without analyzing your operational cost including all expenditure, expected profit to be generated, you cannot derive at salary structure. Keep in mind that, there will be Performance based hike every year besides paying Bonus for Outstanding Employees(optional).
My suggestion is that kindly do not follow any organisations salary structure. You need to define on your own based on financial aspects. You can end up in paying more than whatever you had earned. Due to cost of living, many companies started shifting to tier 2 or tier 3 cities.Operation standards remained same but expenditure has reduced. There are millions unemployed in India. Look out for those who are really in need of job and willing to commit for n number of years.
While recruiting employees for your BPO, do not hire PG's as their expectations are high. Be very specific while hiring interviews candidates. Lookout for recruiting TALENTED UG applicants. Develop their skills and try to retain them minimum for 2 - 3 years.
With profound regards
From India, Chennai
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Salary hike projection.doc