HRSINGAPORE Community Discussions

Capping of Salaries - Update 1 (Replies)


Dear HR Professionals,

Does anyone have any experience with capping of salaries withing the organization? Most of our employees have been with us very long and their salaries have out witted their capabilities or job function. We are thinking how to start the process of capping when they hit the max ceiling.




Every company must have Salary range set up which is very important for organization to plan budget as well. You can look into Market salary range and then set up this process depending on the budget of your organization. you can compare with 2 to 3 salary range and keep 3
categories such as Minimum, Middle and Maximum salary for particular position.




Salary ceiling is recommended for every job family. Otherwise, it makes no sense.

To do this, company can fall back on their salary structure since this has a minimum, mid and maximum salary for each job family. The maximum salary is the salary ceiling. In short, you can communicate the salary ceiling for a particular job if your organisation has a salary structure.

If you have none of this, perhaps it is time to develop one.




You can survey and template your vocation ranges and once they hit the max ceiling, just tell them so. Along the way, you could possibly advise them on the career path and onward remuneration package they can scale. I mean, it will be a back-firing policy if your guys are overly ambitious.




Have HR policies and salary bench-marking.



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