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Friday, February 28, 2020

Factors considered for salary calculation

Salary Calculation, factors that determine salary, factor consider for calculating salary

"Salary Calculation" 

Here, I am not going to explain how Human Resources calculate salary using formulas, the percentage for Basic, HRA, PF, Gratuity, etc but I will try to make you understand the factors that determine salary. There are different factors considered for calculating candidate salary.

Many a time we hear from hiring manager/recruiters saying "This is the best we can offer". Now the questions which come to your mind, 
"Such a big company and still paying less salary Why?"
Some Candidates do not negotiate but still receive offers higher than their expectations. How come?
Such a small company and still pay better than big organizations, Why?"
(Refer the link for "effective salary negotiation with HR")
Many such questions are unanswered by the recruitment team of the hiring company. I will try to explain what all things are considered before calculating the salary of any candidate.

1) Total Experience - This is the first thing any organization look into the profile. The overall experience and relevant experience the candidate hold, For example, the candidate in been interviewed for sales position, his total experience in 10 years but the relevant experience in sales is just 5 years then 5 years would be considered while calculating the salary.

2) Employment Stability - How many companies changed in the entire career and what is the duration of stay in each company. Nowadays candidates, without thinking much, keep on changing the job for money or for other reasons but they should keep in mind that it will affect their career in the long term. So I will suggest to choose the right company and stay for a longer duration.

3) Educational Qualification - Extreme important factor to be considered, higher the qualification better is the pay scale. The company also considers the institute of qualification, full time or part-time course, etc. 

 4) Certification - Number of certificates the candidate holds. Here I would like to highlight, the certificate should be in line with the skill for the applying job. You have done Testing certificate and applying for sale job then it is irrelevant.

5) Interview Technical Ratings - Last but not that least, the technical rating provided by the panel plays an equal role as above 4 points do. (have a look at "How To Get Selected In an Interview")

All these points are entered in the system and ratings are provided accordingly.
Plus system also calculates your current & expected CTC and percentile limit of company and suggests the best possible figures. It is system ownership that it will never cross the 95th percentile of the company.

And after taking the approval from higher management, hiring manager/recruiter releases the offer to candidates.
"Prepare a nice and informative resume, which will talk on your behalf".


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