Ideally Management would like to see Total Cost to the company and compare to market at median mostly

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

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

Got it. While presenting the new range data to management what best practices to follow? Especially the logic

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

Thank you very much for your inputs. This helps!

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.

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

@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.

@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?

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.

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?

Yes Nivi, the differentiation happens on the basis of market data for roles. For example median salary for a Customer success manager (3-5 years experince) might be 8 LPA and median salary for a software engineer SDE 2 (3-5 years of experience) might be 18LPA. so it is completely justifianle to have higher salaries for same years of experiemce across engg and non engg functions