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Salary structure bench marking, Salary Survey

by, yogesh mhatre nikita purav yogita gorule manali tarkar

31 43 17 20

Benchmarking
Benchmarking is the process of identifying, understanding &adapting outstanding practices from organizations anywhere in the world to help your organisation improve its performance
Gregory B Watson

Salary structure benchmarking


Companies today are benchmarking the salary packages provided to their people. This helps them to motivate their employees & retain best people within their company It is done through range of salaries, companies annual report, informal contacts & other forms of market intelligence

Purpose of salary structure benchmarking: Pay the employee as good as any other Organization
Motivate the employees to work with almost loyalty To retain the best workforce within the Organization Compare the pay structures of other organizations for

the same job


Review the salaries when needed

Types of benchmarking
Internal benchmarking
External benchmarking Process benchmarking

Steps in benchmarking process


Planning
Analyzing Integration Action Maturity

In Planning stage:-

Identify who is to be Benchmarked & determine the data Collection method.


In Analyzing stage:-

Determine the current Salary structure of target companies & Set future plans of your company.
In Integration stage:-

Communicate the findings & Gain acceptance from deciding Authorities.

In Action stage:Implement the revised salary structure & monitor the response through employee satisfaction survey. Recalibrate benchmarks if needed.
In Maturity stage:Newly invented Salary structure are fully integrated into the process. Accordingly salary is provided for the newly hired people too.

Broader ways of salary structure benchmarking


Competitors benchmarking:Salary structure benchmarking of one company with that of its market competitors
Neighbours benchmarking:Salary structure are benchmarked among the neighbourhood companies. Employees may shift to companies which located nearby locations

Advantages of benchmarking
It involves performance comparison with the best in

the industry It enables the organisation to incorporate creatively the best practices from any industry It helps the organisation to meet the requirements of the end user. It helps in establishing quality goals & true measures of productivity

It facilitate changes
It helps in attaining a competitive edge. The interactions of professionals with benchmarking

facilitate future professional growth. This will be more useful to the organisations in future assignment.

Pitfalls of benchmarking
Lack of focus and priority

Lack of commitment on the part of management


Failure to consider customer requirements Incompetent leadership Lack of proper planning Not involving the staff in the program

Conflicting objectives of the organisation & those of benchmarking

partners

Lack of adequate resources & facilities

Requirements for successful benchmarking


Understand your own company's processes &practices

thoroughly

Select the best companies for benchmarking Focus on the best practices Share companies with the companies selected for Benchmarking Involve concerned people in benchmarking Use benchmark regularly Be willing to change

SALARY SURVEY
Informal Surveys:

May be conducted through telephones and informal interviews.


Formal salary survey:

It uses questionnaires based on the benchmark jobs That are also present in other companies and industries.

Steps In Conducting Salary Survey


1. Defining the Labour Market

2. List of Key Job position


3. Detailed Description of Jobs 4. Collection of Salary data 5. Compilation off Salary data 6. Results Survey

The following are the steps in Conducting the Survey


Defining the Labour Market
>Establishing the boundaries of the pertinent labour market is the most critical step in the survey procedures. It involves the selection of the industry, the region or area, or the firm to be included in the survey. List of Key Job Position Common to Most Firms >This will ensure a representatives sampling of the jobs. >Selected as universal for a particular salary survey.

Detailed Description of Jobs >Key jobs are the labor grades that are comparatively

stable in duties and responsibilities. These are occupations that are common in most industries and scattered through the ladder of labor classification and commonly familiar to most people in the industry. Collection of Salary Data >This may be done through a set of questionnaires and supplemented by interviews to get the accurate information. The information must be able to pinpoint the problem area that has to be addressed by the compensation structure and the terms of payment plan.

Compilation of Salary Data >The data gathered will provide management with the

opportunity of arriving at the arithmetical average , the median , and the rage rate paid and the supplementary wage data.
Presentation of Result Survey >From here the results are properly evaluated and the HRD

prepares the corresponding recommendations to the management of the most appropriate action to take relative to the revision of the current wage structure . Participating companies are also provided with the summary of the findings to foster continuous cooperation.

Compare Employers: Assistant Manager, Customer Service at Air India


Air India Compensation Salary Bonus Total Pay Rs 247,357 Rs 857,877 Rs 2,915 Rs 39,592 Rs 266,539 Rs 893,479 Rs 261,860 Rs 945,380 Rs 16,897 Rs 198,938 Rs 289,860 Rs 1,079,268 Rs 340,169 - Rs 879,701 Rs 13,157 - Rs 115,097 Rs 356,548 - Rs 940,888 Thomson Reuters TATA CONSULTANCY SERVICES LIMITED

Salary survey of flight dispatcher


Job: Flight Dispatcher Salary by Years Experience Years Experience National Salary Data

1-4 years 6 salaries Rs 235,832 - Rs 610,419 5-9 years 6 salaries Rs 294,791 - Rs 1,013,295
Country: India | Currency: INR | Updated: 13 Nov 2013 |

Individuals Reporting: 18

Companies and Industries for Flight Dispatcher Salaries


Popular Industries Salary Range Commercial Aviation or Airline Rs 218,084 - Rs 1,354,469 Key Statistics for Flight Dispatcher Salaries and Jobs Years of Experience Less than 1 year 11% 1-4 years 33% 5-9 years 33% 10-19 years 17% 20 years or more 6%

Salary survey of aircraft mechanic


Job: Aircraft Mechanic / Service Technician Salary

by Years Experience Years Experience National Salary Data 5-9 years 6 salaries Rs 318,374 - Rs 732,503 10-19 years 5 salaries Rs 420,000 - Rs 1,080,000 Country: India | Currency: INR | Updated: 11 Nov 2013 | Individuals Reporting: 16

Companies and Industries for Aircraft Mechanic / Service Technician Salaries


Popular Industries Salary Range Commercial Aviation or Airline 127,857

Rs 1,312,070 Aircraft Maintenance Services Rs 111,007 - Rs 981,201 Key Statistics Years of Experience 1-4 years 25% 5-9 years 38% 10-19 years 31% 20 years or more 6%

Survey comparison
Air India typically pays Similar employers pay

its employees -12% below market

their employees:-1% below market Similar companies include: Thomson Reuters, TATA CONSULTANCY SERVICES LIMITED