CavinKare Private Limited Salary Revision 09 10. FAQs. HRD 17 07 2009. Coverage. Slide 3 - Objective Slides 4 to 17 – Details specific to Performance Review and annual revision 09 10 Slides 19 to 34 – General queries on Process of annual revision, increment and promotions. Objective.
17 07 2009
Slide 3 - Objective
Slides 4 to 17 – Details specific to Performance Review and annual revision 09 10
Slides 19 to 34 – General queries on Process of annual revision, increment and promotions
Out of 567 employees considered for increments, 302 are
in above average performance quadrant (53%)
53% of employees in above average performance quadrants
Overall salary increase for 567 employees in all Bands excluding Associates is 14%.
Band 2 and 1- Average increase on salary is 12.35%. Whereas variable pay on CTC now has been increased from 13% - 16% to around 22% to 27% and linked directly to top line and bottom line achievement.
Band 3 – Variable revised from current 16.6% to 17% on CTC
Out of 567 employees who received increments, 135 employees are new (1st Appraisal taken this year). Hence they got pro-rata increments in their respective performance quadrant.
All positions in the company were compared with 50th percentile in the industry
An attempt was made to take all Critical positions in the company above 60th percentile.
Those positions already paid far above 50th percentile were given lesser increase
Otherwise performance quadrant wise increment given this year is the same as in the past
This chart explains that employees in each band is uniformly spread
across 4 performance quadrants
First line of X axis refers to different quadrants
Second line of X axis refers to the various Job bands
Third line of X axis refers to total number of employees in each quadrant
Increment % is same irrespective of job bands.
Increment % is based on performance quadrants across bands
Additional adjustments were given to critical positions in managerial levels and functions based on market premium.
For SR, lump sum amount is given as monthly increase based on performance quadrants.
Majority of the employees in lower bands were new and hence the variation is majorly due to proportionate pay for the period they worked during the last fiscal.
Few adjustments were given to officer level position based on market value.
Increase in Salary for Band 1 & 2 given on variables. Similarly for officers increase is given on take home.
Retiral benefits like PF, gratuity are based on basic salary. Any increase in basic would lead to cut in take home portion since certain % of increase would go to contribution to retiral benefits.
Currently in Band 6, the percentage of Basic to CTC is comparatively higher than the market in our organisation. Due to this higher basic salary to CTC at Officer level, it is impacting when they get promoted to Managerial level where majority of the salary components are fixed on annual basis.
HRA % increased from 40% to 50% for Officers and Sr. Officers and made take home more tax friendly. HRA up to 50% of basic is exempted from tax
Compensation surveys across show that today’s youngsters prefer more take home than retiral benefits. Hence going forward, we will increase other components of salary in monthly take home and only min increase would be given on Basic salary.
Compensation structure is unique to each grade and there are fixed allowances, perks, bonus, for each grade.
Hence employees moving from one job level to another would face the following issue:
It happens some time the position holder continues to be in the same job for long and outgrows the position/job. Being in the same job they will be an expert but that does not qualify them to get the best increment %
Every job is budgeted and cost attached. Costing of job is done based on its importance, criticality and market attraction. There is a salary band for each grade to ensure fair price for the job.
If employee has reached the maximum salary in that band then he/ she is given only the min increment. This is known as capping, and is done to ensure that performance improves with time that an employee spends in the organization.
Increment is given based on individual’s performance and considering the cost of the job. Otherwise it will not challenge the position holder to look at growing in hierarchy and will make them complacent as they are paid higher for the job than it required.
Such a case the increment would be only the minimum based on inflation. Such employees are given min 7% irrespective of their appraisal score or the time spent in the organization. This will put pressure in the system to ensure that both job and position holder are growing in the organisation.
Individual takes more / additional responsibilities and there by increase the width and depth of the job
Employees look at automating or eliminating jobs that do not require human intervention and thus look at more value adding jobs.
Rationalisation of manpower number happens and thereby people doing the same job is reduced over a period and thus individual holder will become responsible for more responsibilities than earlier.
Quality of job and quality of job holder increases and there by their market value and hence their pay.
Many established organisation employees question the logic of new positions created in their department and how it impact their job, and relationship to the new positions.
MTs are recruited from campuses based on the salaries offered at that campus by various companies.
Last year CKPL recruited from two different tiers of management institutes and offered differential salaries.
Upon placement within the company, all MTs do the same job, hence we have looked at narrowing the gap in salaries based on their performance criteria.
Those MTs from tier II management institutes who have done exceptionally well and demonstrated potential were given significant adjustments and others were given lesser adjustment in addition to their increment, thereby narrowing the difference in their salaries.
There is a significant improvement in score year after year amongst
This chart compares the average score of employees above 2 yrs service against 2 and below. Though there is no significant difference between them, the trend line shows that the average score of New comers are constantly moving up and they have bettered their performance compared to experienced employees in CKPL. Last appraisal new recruits have scored better than experienced Employees.
Is it an indication that new talents are performing better than existing?
What is the criteria for increments?
What is the process in deciding Increments in the company ?
How are employees fitted to different quadrants ? Who decides it?
For eg. There are 12 employees in one dept. Their annual scores are sorted on descending order.
This dept average score is around 75. Hence 75 is in quadrant 2.
Employees are force fitted based on their absolute score. Quadrant fitment is done for managers separately and officers separately based on the range of average score as shown above in two different colours. At times it happens for a decimal score difference, you may get in to different quadrant
What determines the overall average increase in increments every year for the company ?
How is promotion of an employee decided ?
Is there any minimum period for being considered for promotion?
Then why are promotions to many refused stating minimum period like 2 to 3 yrs in one job ?
Why then some employees who have completed 2 or 3 years in one job not given promotion ?
Why few employees are given promotions during mid of the year?
What is interim Promotion?
Is there any restriction on maximum number of promotions in a year?
How come few employees getting promoted faster than the others?
If there are more than one candidate available internally for the same next level position, what is the basis for promotion?
Promotion seems to be subjective than objective?
We do not encourage any exceptions in the whole process and all hikes are based on the logic built for the respective function, grade and salary band.