In many organizations, 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.
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.
To: Chuck Charles
New York City, NY
From: HR Department
Date: 6th April 2019
Dear Mr. Charles,
The HR staff committee presents this PayScale 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.
Tim Johnson, Chair
The committee’s purpose is to assess the past year’s 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.
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
The committee also found that 40% of the employees had other part-time jobs to meet their basic needs.
The CPI (Consumer Price Index) has shown a cost of living increase of 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.
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:
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
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.
1- Junior Staff
2- Junior Executives
3- Assistant Manager
5- Senior Manager
7- General Manager
8- Vice President
|Salary Bands||Basic Salary 5% increase||Housing Allowance 10% increase||Car Allowance 5% increase||Medical Allowance 2% increase|
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.
New York City, NY