Hi,

I would suggest you to go for a simple employee grading system before working on the salary structure. Depend on the structure and strength of your organisation, you can either choose Level 1 - 5 or 1 - 10 and categorise your employees under each leavel, then you will find it easy for fix the salary bands (minimum and maximum) for each category. This is how it works.

Shankar Poohary

Dear, Kaushik

I Would suggest you conduct Job evaluation for each benchmarked jobs title, then determine number of grades in your organization,for example ; from non staff level, staff, supervisor, asst.manager, manager, senior manager,general manager, director.

then you can follow the steps below :
Building the Salary Structure

1.Collect Market Data
2.Determine Competitors
3.Group Benchmark Positions by your Salary Grades
4.Find out whether Market Rates correlate with Grades through Scatter Diagram
5.Select appropriate Market Statistic
6.Find out your Market Position

Market Data can be one of the followings:

1.Predetermined Selected Benchmark positions
2.Compensation components of majority of the positions in the Company