Dear All,
I have a query with respect to salary fitment. We have workmen cadre working in our plant who report to the staff cadre. Now, we want to introduce a workmen growth plan for workmen with around 15 years experience to get promoted into the staff cadre.
The problem that we're facing is that the salary of a workman who has been working for the past 15 years is significantly higher than that of an entry level employee in the staff cadre. Can somebody please help me to do the fitment for this promotee?
From India
7I have a query with respect to salary fitment. We have workmen cadre working in our plant who report to the staff cadre. Now, we want to introduce a workmen growth plan for workmen with around 15 years experience to get promoted into the staff cadre.
The problem that we're facing is that the salary of a workman who has been working for the past 15 years is significantly higher than that of an entry level employee in the staff cadre. Can somebody please help me to do the fitment for this promotee?
From India
Dear Paradoxical,
Your name seems to fit your query :) This is quite a common phenomenon which happens across the industry and quite a delicate problem. Also when the workmen has been working with you for 15 years some technical skills would have been added, some training undergone that have been added, so he would not per se equal a entry level employee of staff cadre, but maybe junior officer or officer level. And if you have this roadmap then it will be required that you atleast start upgrading their computer handling skills, documentation skill one year prior so that when the staff do not feel dejected in comparison and demotivation doesn't creep in.
Regards,
Pratima
From India, Mumbai
Your name seems to fit your query :) This is quite a common phenomenon which happens across the industry and quite a delicate problem. Also when the workmen has been working with you for 15 years some technical skills would have been added, some training undergone that have been added, so he would not per se equal a entry level employee of staff cadre, but maybe junior officer or officer level. And if you have this roadmap then it will be required that you atleast start upgrading their computer handling skills, documentation skill one year prior so that when the staff do not feel dejected in comparison and demotivation doesn't creep in.
Regards,
Pratima
From India, Mumbai
Dear Paradoxical,
Have you identified the mini-max for the salary band? Parity would be easy when you draw the range. Just as Pratibha have mentioned, an employee working for you have been up-skilled and trained. On the top , the loyalty bonus is often disbursed not as a lump-sum payment but through the gradual increase in the salary. Please identify the reasons , you will be able to cite the growth map and add to the motivations of your employees.
Wish you all the best !
From India, Mumbai
Have you identified the mini-max for the salary band? Parity would be easy when you draw the range. Just as Pratibha have mentioned, an employee working for you have been up-skilled and trained. On the top , the loyalty bonus is often disbursed not as a lump-sum payment but through the gradual increase in the salary. Please identify the reasons , you will be able to cite the growth map and add to the motivations of your employees.
Wish you all the best !
From India, Mumbai
Not only the existing basic pay is to be protected but since the employee concerned is being entrusted the greater responsibility,in such cases extra incentive in token of appreciation of performance is also necessary which can be equal to two or at least one annual grade increment of next higher post.
From India, Bhopal
From India, Bhopal
Dear Mr. Paradoxical,
It is a fact that the rates of wages under the Min. Wages Act are the same for the persons in a particular category irrespective of number of years of experience, responsibility and accountability attached with the particular job/post. After all it is the min. wage. If you need good quality manpower, better rates than the MW rates should be paid alongwith career growth. There cannot be a condition that the fresher as well as the old hands shall draw Same wages. If the company follows same wage policy, the company shall end up as a training ground for Skilled manpower for others to poach, leave alone the fate of the company.
Hence, my suggestion is that you formulate a good policy for hiring & retention of manpower with succession plan so that the company prospers alongwith growth of employees. Don't fall prey to emotions of fresh hands over higher compensation to old experienced & skilled hands.
Rgds.
From India, Mumbai
It is a fact that the rates of wages under the Min. Wages Act are the same for the persons in a particular category irrespective of number of years of experience, responsibility and accountability attached with the particular job/post. After all it is the min. wage. If you need good quality manpower, better rates than the MW rates should be paid alongwith career growth. There cannot be a condition that the fresher as well as the old hands shall draw Same wages. If the company follows same wage policy, the company shall end up as a training ground for Skilled manpower for others to poach, leave alone the fate of the company.
Hence, my suggestion is that you formulate a good policy for hiring & retention of manpower with succession plan so that the company prospers alongwith growth of employees. Don't fall prey to emotions of fresh hands over higher compensation to old experienced & skilled hands.
Rgds.
From India, Mumbai
Hello Paradoxical123,
Like the other members have pointed out, this sort of situation is quite common whenever such Employee-friendly steps are adopted.
But such Promotees are NOT treated on-par with the FIRST step in the staff cadre for many reasons, like:
1] Like Pratima mentioned, this Promotee category WILL [NOT would] have added quite a few job-related skills that the entry-level staff employee wouldn't have. However, computer & documentation related skills would be minimal.
2] Like (Cite Contribution) mentioned, the Loyalty factor is already 'tried & tested' for such employees--while the entry-level staff employees are yet to prove it. But, 'how' you embed this aspect/factor into the salary structure will need to be figured-out, since this aspect can't be directly exposed as it MAY lead to comparision situations.
The Best solution/mechanism for your situation can come from HR professionals who work in PSUs--most PSUs have such a model in-vogue. As far as I can recollect, such promotees are usually fitted into the Second or Third level of the Staff cadre [Equivalent to 2-4 yrs exp for the entry-level staff employees] with the associated salary structure--can't give more details than this, since I was in the technical line when I worked in a PSU years ago [so never focused on such aspects].
All the Best.
Rgds,
TS
From India, Hyderabad
Like the other members have pointed out, this sort of situation is quite common whenever such Employee-friendly steps are adopted.
But such Promotees are NOT treated on-par with the FIRST step in the staff cadre for many reasons, like:
1] Like Pratima mentioned, this Promotee category WILL [NOT would] have added quite a few job-related skills that the entry-level staff employee wouldn't have. However, computer & documentation related skills would be minimal.
2] Like (Cite Contribution) mentioned, the Loyalty factor is already 'tried & tested' for such employees--while the entry-level staff employees are yet to prove it. But, 'how' you embed this aspect/factor into the salary structure will need to be figured-out, since this aspect can't be directly exposed as it MAY lead to comparision situations.
The Best solution/mechanism for your situation can come from HR professionals who work in PSUs--most PSUs have such a model in-vogue. As far as I can recollect, such promotees are usually fitted into the Second or Third level of the Staff cadre [Equivalent to 2-4 yrs exp for the entry-level staff employees] with the associated salary structure--can't give more details than this, since I was in the technical line when I worked in a PSU years ago [so never focused on such aspects].
All the Best.
Rgds,
TS
From India, Hyderabad
Dear Member
First of all I would like to appreciate the idea of promoting "workmen" to "staff". You have recognized one of the fundamental human need required to be motivated is "growth" and "social recognition".
After such long (15 yrs) of association with a company, if the employee possess the competence required for the next level (be it supervisory/staff) level the company should definitely do with.
The issue of disparity is "perceived" as it is not comparable. If you are into manufacturing I am sure in most cases the workmen would be possessing the "must to have" skills (technical skills) much more than the entry level engineer and the entry level engineer might posses "nice to have" skills like communication etc. more than the workmen.
The simple rule is promote him to first line executive cadre with X% of rise, simultaneously do away with irritants that are attached with "workmen" -culturally and legally- to the extent possible.
Differentiate both categories with the "career growth path" provide faster growth opportunity to professionally qualified engineer based on criteria like performance, potential, qualification etc.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
First of all I would like to appreciate the idea of promoting "workmen" to "staff". You have recognized one of the fundamental human need required to be motivated is "growth" and "social recognition".
After such long (15 yrs) of association with a company, if the employee possess the competence required for the next level (be it supervisory/staff) level the company should definitely do with.
The issue of disparity is "perceived" as it is not comparable. If you are into manufacturing I am sure in most cases the workmen would be possessing the "must to have" skills (technical skills) much more than the entry level engineer and the entry level engineer might posses "nice to have" skills like communication etc. more than the workmen.
The simple rule is promote him to first line executive cadre with X% of rise, simultaneously do away with irritants that are attached with "workmen" -culturally and legally- to the extent possible.
Differentiate both categories with the "career growth path" provide faster growth opportunity to professionally qualified engineer based on criteria like performance, potential, qualification etc.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
i admire you for providing a career even to workmen cadre. What i understand is that teh staff cadre is a higher cadre than the workmen cadre. Therefore the promotion for workmen means elevation to a higher cadre.If so, you need to place them at the first stage of the staff cadre but not at the stage that is commensurate with their 15 years of servcie since the service put in by them is in workmen cadre but not in staff cadre and teh skills and qualifications differ for both teh cadres. However one of the principles of promotion is the protection of pay on such promotion. This process is called fitment.please see whether you can adopt the following formula to avoid any anamoly since you have not furnished any deatisl of salary or pay scales of both the cadres.
1) Find out what is the gross salary drawn by the workman at the time of promotion.
2)Find out what is the gross salary of staff employee at the entry level.
3)The difference can be paid as 'Personal pay'. This protects thier existing pay.
4) You can grant extra one increment at the time of fitment as incentive for promotion. This allows them to draw higher pay than what they are drawing which shall naturally happen on promotion.
B.Saikumar
HR & labour Law advisor
mumbai
From India, Mumbai
1) Find out what is the gross salary drawn by the workman at the time of promotion.
2)Find out what is the gross salary of staff employee at the entry level.
3)The difference can be paid as 'Personal pay'. This protects thier existing pay.
4) You can grant extra one increment at the time of fitment as incentive for promotion. This allows them to draw higher pay than what they are drawing which shall naturally happen on promotion.
B.Saikumar
HR & labour Law advisor
mumbai
From India, Mumbai
There should be career growth opportunities for the employees irrespective of categories so that the employees are motivated and retention percentage is increased. If a workmen having worked for 15 years has got the requisite potential to hold the responsibility of a staff, then it should be carried out. With regard to fixation of salary in the higher grade, while his existing salary needs to be protected, a proper fitment needs to be fixed at as per the fitment strategy in staff category. One should not forget the contribution of such worker since last 15 years which should be taken in to consideration while fixing the fitment irrespective of the fact that the fitment so considered will be more then the existing staff category.
regards
bk mohanty
Cypress Management Associates
9937822563
From India, Bhubaneswar
regards
bk mohanty
Cypress Management Associates
9937822563
From India, Bhubaneswar
Dear Member,
This is quite common in my organisation (a central govt enterprise).In such cases the basic pay of the promotee is protected and an increment from the new scale (that of the staff cadre)is given as an additional incentive.Thereafter the increments are as per the new scale.
S.K.Limaye/MBA
From India, New Delhi
This is quite common in my organisation (a central govt enterprise).In such cases the basic pay of the promotee is protected and an increment from the new scale (that of the staff cadre)is given as an additional incentive.Thereafter the increments are as per the new scale.
S.K.Limaye/MBA
From India, New Delhi
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