Pay Scale Proposal

In many organisations, the employer asks the employee to draft the salary proposal on which he wants to work. The purpose of the proposal is to negotiate. Through this proposal, the person who is going to be hired suggests the salary that he should be given. The salary proposal is usually slightly higher than the low scale to a midscale range of salary.

Tips for writing the pay scale proposal

Although it completely depends on the employer whether to pay you the salary you have proposed in the proposal or not. If you are able to draft a professional and captivating proposal, you are likely to influence your boss to a large extent. Your boss is more likely to pay you the salary that you have proposed if you have written the pay scale proposal well. Here we are going to give you a few tips that will help you in drafting the pay scale proposal.

  1. Start the proposal with your personal details such as name, qualification, the position you have applied for, etc.
  2. Mention your competencies in a comprehensive way
  3. Mention the pay scale that you want to receive. Also, give enough reasons for the employer to be paid the proposal salary
  4. Tell the employer why you deserve the proposed pay scale.

How to create a pay scale proposal?

  1. Before you bring this proposal in writing, make sure to conduct some research to know how much the people are being paid on the same position in different companies.
  2. Check how many people are working in the same field as yours. This will let you know if you have got unique skills and expertise. If your skills are unique and there are very few people to compete with you in the market, you are in a better position to negotiate for the salary that you want to receive.
  3. Mention the pay scale you want to receive and review the entire proposal in detail. After reviewing, submit it to your employer. Make sure that you submit the proposal with complete confidence, and you know you are negotiating for what you deserve.

Sample Pay Scale Proposal Template

To:      Chuck Charles
CEO,
New York City, NY

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From: HR Department
Date:   6th April 2019 

Dear Mr. Charles,

The HR staff committee presents this Pay Scale revision proposal to you on behalf of the company employees. The proposal covers the changes required at different pay scales of employees, for the next 2-years.

Committee Members

Tim Johnsons, Chair
Robert Brown,
Jack Tim,
Amelia Heather

Purpose

The committee’s purpose is to assess the past year salaries and measure results, along with developing a future plan for 2 years. The objective is to consider the market situation, inflation, competitive landscape and overall wellbeing of our employees.  The committee has accessed the market salary survey and it has shown that our salary percentile has dropped from 85% to 70%. This can put us at risk of retaining our employees.

Staff Salary Survey

The staff administered a survey in January to gather information about the staff’s priorities, concerns, and compensations. The top priorities of the staff were

  • Cost of living adjustment
  • Market salary adjustment

The committee also found that 40% of the employees had other part-time jobs to meet their basic needs.

COLA (Cost Of Living Adjustment)

The CPI (Consumer Price Index) has shown a cost of living increase around 3% since 2017, which suggests that a need for consistency of cost of living is a priority. The committee recommends a 4% Cost of Living Adjustment into the operating salary budget, beginning next month.

Recommendations

As per the realities mentioned above, it is proposed to revisit our salaries across all pay scales. This initiative will enhance the work environment and the social behavior of employees. Also, it will have a positive impact on their lifestyle. Moreover, retention of our valuable employees will create a sustainable business environment and overall, increase the productivity of the company. Close attention should be paid to equity between race, gender, and state while determining employee payment.

We recommend the following increases:

  • 5% increase in basic salary
  • 10% increase in house allowance
  • 5% increase in car allowance
  • 2% increase in medical allowance

These changes will bring the company in line with the market rate of this part of the region and the employees can maintain the standards of their lifestyle.

Furthermore, we would like to highlight two more components of the compensation policy

Merit and Equity Increase

The committee recommends that the company continues to contribute bi-annually to the pool of centralized funds and make adjustments to salaries in order to make them competitive in the industry, according to the merits.

Retention Salary Increase

The company should retain employees that are valuable and beneficial for the company. This increase may be permanent or temporary or in the form of bonuses.

Revised Salary Scale

Below are the actual figures of the revised Pay Scale along with the mention of the employee salary bands.

Salary Bands

1 Junior Staff
2 Junior Executives
3 Assistant Manager
4 Manager
5 Senior manager
6 Director
7 General Manager
8 Vice President
9 President

 

Salary figures

Salary

Bands

Basic

Salary

5% increase

Housing Allowance

10% increase

Car

Allowance

5% increase

Medical Allowance

2% increase

1-5 $2,000-$5,000 $200-$500 $100-$250 $40-$100
6,7 $10,00-$15,000 $1000-$1500 $500-$250 $200-$300
8 $25,000 $2500 $1250 $500
9 $40,000 $4000 $2000 $800

 

The Senior Appointment Panel will review the salaries for jobs higher than grade 9; Senior Management and Stockholders.

Any supplementary pay or bonuses for additional work done by the employees, lump-sum payments and stipends will be administered through additional compensation and these adjustments will be funded from the centralized compensation fund.

We look forward to having a discussion with you in the near future. Please let us know a convenient time when you are available.

Thank you for your time and consideration.

Regards,

Tim Jim
Human Resources
New York City, NY
212-432328882
[Email]

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Pay Scale Proposal Template

Format: MS Word (.docx) 2007/10/13
File Size: 35 KB

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