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Chetna Gogia

05/25/2023, 12:46 PM
Ideally Management would like to see Total Cost to the company and compare to market at median mostly
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Nivi Mandappa

05/25/2023, 12:52 PM
Thank you for the inputs Chetna. What is the best practice ideally in the market trends on the the percentiles. Does it make sense to be at P50 or below
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Chetna Gogia

05/25/2023, 12:53 PM
Depends on the company growth if company is growing aggressively then it can go beyond P50 as well or in some cases company benchmark non tech roles at P30 and Tech at P50 or median
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Nivi Mandappa

05/25/2023, 1:05 PM
Got it. While presenting the new range data to management what best practices to follow? Especially the logic
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Chetna Gogia

05/25/2023, 1:07 PM
Best practice is comparison of market, internal comp comparison and what you are recommending and why ? If you are asking salary correction then what's the business case and what's your internal parity
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Nivi Mandappa

05/25/2023, 1:17 PM
Thank you very much for your inputs. This helps!
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Anurag

05/26/2023, 8:27 AM
Apart from total CTC; Total cash comp is something that should be benchmarked @Nivi Mandappa. Create a 20% above and below the 50th percentile of the market (you can get market benchmarks for all roles). For example if median salary of total cash (fixed plus variable) for SDE1 is 9lpa, then your salary band should be 7-11 lpa for SDE1. Although the band variance (in this case we assumed 20% above and below) depends on the typical tenure one spends within a band before getting promoted.
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Nivi Mandappa

05/26/2023, 12:24 PM
Generally what is the suitable tenurity for promotion. Currently it’s 3 yrs but does it makes sense to reduce that to 2 if the talent is extremely high performer
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Anurag

05/31/2023, 7:07 AM
@Nivi Mandappa hugh performance in current role can be rewarded with bonus, but for promotion, they have to be able to take the necessary responsibility, have the required skill as mandated by the next band. And yes it is normal to promote a person in just 2 years too.
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Nivi Mandappa

06/02/2023, 5:10 AM
@Anurag : Thank you. Also I would like to understand while preparing ranges between Eng to non Eng positions. What’s the difference in blore stage to be considered ? Like non Eng salaries are slightly lower than Eng right . So does a 30% higher salary for Eng against non Eng be justified?
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Anurag

06/02/2023, 6:48 AM
Hey @Nivi Mandappa I'm sorry I couldn't understand this question. What does 30% higher salary mean? As in 30% increment while hiring a new employee? Engineering or non engineering role, the band has to be built based upon the benchmarking data. This has nothing to do with how it compares with some other band or role.
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Nivi Mandappa

06/02/2023, 8:08 AM
Sorry. My question is how do you differentiate the salaries of Eng against non tech Eng. generally non Eng salary ranges are lower compared to Eng right?