Reading Time: 2 minutes

When it comes to how to calculate salary hike, it is an important process for employees and HR Managers. Salary increases affect morale, retention, and long-term engagement. So, whether you’re negotiating a performance-based hike or you’re an HR Manager trying to bring fairness. 

Why Salary Hike Matters

Salary hikes are more than just numbers on paper. They convey recognition and demonstrate performance in relation to the broader market. For this reason alone, it is vital that HR departments and employees alike are consistently clear and transparent with salary hike calculations. 

Simple Method to Calculate Salary Hike

Hike Percentage = [(New Salary – Old Salary) ÷ Old Salary] x 100

 

To generate a sample: 

 If your salary now is ₹50,000 and the new salary is ₹57,500,

 = [(57,500 – 50,000)/50,000] x 100

 = 15% Salary Hike

 

We use that formula a lot to provide increases during performance reviews and annual appraisals all the time.

Factors Affecting Salary Hike

• Performance Appraisal Scores
• Company Budget
• Industry Trends
• Employee Experience
• Changes in Role / Responsibilities

 

In addition, external factors such as inflation, market demand, and specific HR policies are considered. Also, help create the overall context for performance evaluation and salary hikes.

Difference Between Salary Increment and Promotion

Salary Hike

• Refers to an actual increase in pay. 
• Typically, it occurs annually or at least at the completion of an appraisal cycle. 

Promotion

• Refers to a new title or new role. 
• Has elevated responsibilities. 
• It will usually always be accompanied by a salary hike, as part of the upgrade. 

From an HR perspective. Understanding the distinction between a salary increase and a promotion is important. As it helps enable employee expectations to be managed appropriately. It also aids in the drafting of transparent HR policy documents. 

Ways HR Can Ensure Positive Salary Hikes 

Salaries are a sensitive matter. Companies must approach salary hikes. But in a formal and structured manner. Here are some of the ways HR can benefit from a structured approach to salary hikes:

 

• Use salary benchmarking tools.
• Implement and sustain. A streamlined performance management process.
• Have a clear and transparent communication plan.
• Use a digital HRMS platform to assist in calculating and documenting hikes through automation.

This regards a positive environment and also helps HR to calculate salary hikes easily.

Conclusion

Salary hikes are tokens of trust, growth, and value. A structured approach to calculating a salary hike helps with everything. Furthermore, when they are deliberate, clear, and defined, the performance review helps employee engagement and satisfaction.

FAQs

Q1: Is it possible for salary increases to differ by department?

Yes. Unlike other departments, each department can change based on the performance and budget of the department.

Q2: How often do salary increases take place?

Typically, salary increases occur at least yearly during an appraisal cycle, although this can vary from company to company.

Q3: Is it mandatory to have a salary increase after a promotion?

While it is not required, in most situations, a promotion includes an increase in salary.

Q4: What is the basic increase in salary in India?

Typically, salary increases average between 8% and 15%, depending on their industry and role.

Q5: If my performance is good, can HR deny salary increases?

Yes, if the company is not financially healthy or if there are budget limitations in HR software.

 

Reading Time: 3 minutes

The task of managing salaries, deductions, and compliance manually is not only dull, but it is highly error-prone. HRM Payroll is truly transforming the way modern organizations operate. Whether you’re a startup or a large enterprise, the knowledge and implementation of HRM Payroll can positively impact your human resource function. 

Let’s take a detailed look at what it is, why it is vital, and how this can affect your business.

What is HRM Payroll? 

Payroll systems have grown into a comprehensive Human Resource Management (HRM) system or framework. Traditional payroll systems used to simply have a payroll calculator. HRM Payroll has expanded access on multiple levels.

HRM Payroll:

• Calculates employee pay
• Processes employee benefits
• Tracks employee attendance
• Tracks employee leave
• Produces compliance reporting
• Produces taxation and benefits reporting
• Monitors employee performance in the workforce

More importantly, it puts payroll procedures into context with each other. Improving efficiency, accuracy, and transparency.

HRM Payroll Key Features

Here are some of the powerful features that make it an essential add-on: 

1. Automated Salary Processing

No more spreadsheets!  Everything from basic salary to incentives. Deductions are automatically calculated. 

2. Tax Management

Handles TDS, professional tax &  statutory deductions with real-time updates on rules and law.  

3. Time & Attendance Integration

Integrates with attendance management systems to accurately assess working hours. 

4. Employee Self-Service

Employees can view payslips, request leave, and edit personal information all in one place. 

5. Compliance Documentation

It helps you create reports for PF, ESI, and other government-mandated documentation without breaking a sweat.

 How HRM Payroll Informs the HR Chain

Apart from payroll processing, HRM functions have capabilities to manage other components of the entire employee process, including:

• Recruiting
• Onboarding and training
• Performance
• Retention

In conclusion, the capacity of payroll with the other HR functions results in HRM Payroll being a strong contributor to the business.

Using HRM Payroll: What to Know

Before moving to or upgrading payroll in the HRM system, consider the following:

1. Cloud or on-premise

The cloud allows you to easily scale and to do so from anywhere.

2. Integration

Let’s not forget that you will want to ensure you can use your HR tools together. And that they can all integrate. This should not just be a visit with a feature, but more of a deal breaker.

3. Due Diligence

You want to access the role, and the data is encrypted.

4. User Experience

Have a nice, user-friendly interface to promote adoption across your teams.

Conclusion

In conclusion, HRM Payroll is a wise and strategic investment for any business that values precision, compliance, and efficiency.  It not only automates the tedious and routine, but it also allows your HR team to turn their attention to strategic initiatives.  With the right system in place, your organization will see improved payroll accuracy, a more satisfied workforce, and a clearer HR model. 

If you want to modernize your payroll function while keeping your workforce happy and compliant, it is the answer.

FAQs

Q1: What are the HRM Payroll functions? 

It is designed to help facilitate the payroll process in an automated fashion.

Optimize a company’s tax and compliance functions. And to provide functionality that integrates payroll into HR processes, such as attendance and leave. 

 

Q2: Is it designed for small businesses? 

Yes. Small companies benefit from automation and accuracy. And reduce the amount of administrative effort a payroll provides. 

 

Q3: Does this software handle bonuses and incentives? 

Yes! Most payroll systems can administer variable components such as bonuses, incentives, overtime, etc. 

 

Q4: How does it support compliance? 

It aligns your company with the statutory requirements. To divide it as related to contributions regarding PF, ESI, and income tax. Also generates the right reports on an automatic basis. 

 

Q5: Do you need training to use it? 

Most modern platforms are simple to manage, and no training is required. However, a basic training session means users can maximize the efficiency and effectiveness of the HR software more quickly.

Reading Time: 3 minutes

A Letter for a Salary Hike is more than an official communication. It’s a formal occasion to showcase your achievements & express your expectations. And open a respectful discussion about your remuneration. However, sending in a Letter for a Salary Hike the right way involves more than just asking for a salary hike. 

The Importance of Writing a Letter for a Salary Hike

To begin with, verbal requests can easily become forgotten or delayed. When you submit a well-reasoned Letter, it:

• Demonstrates your desire to be professional
• Provides formal documentation of your request
• Allows your employer to consider your request properly
• Shows your communication skills

A Letter for Salary Hike

While you might feel ready to write a letter, take a moment to take a few preliminary steps:

1. Assess your performance

Create a list of your major contributions, projects completed, and goals reached.

2. Research Industry Standards

Know the market value. Your role and experience.

3. Understand Company Policy

Review when your employer has an appraisal cycle, or any rules regarding pay revision.

More than anything, all of the work you can do will add to the credibility.

Formatting a Letter Requesting a Salary Increase.

1. Subject

Salary Increase Request.

2. Salutation

Dear [Manager’s Name],

3. Introduction

Append an introductory sentence with appreciation. Tell them how thankful you are for the role(s) and/or responsibilities you have been given.

4. Body Paragraph

Describe your role, how long you’ve been in the position, and what you have actually done.

Example:

Contributed to improving team output by 20%. And improved [Process Name], improving overall efficiency and reducing time and costs.

5. Support

Support your increase request with performance metrics, and, if applicable, provide supporting arguments against industry standards. 

6. Conclusion

Indicate that you are happy to discuss this matter further and show eagerness to continue contributing.

7. Sign-off

Yours sincerely,

 [Your Name]

 [Your Title]

Advice for Crafting a Letter for a Salary Hike 

• To ensure your Salary Hike Letter is effective:
• Remember to stay professional and respectful
• Keep emotional language out of your letter
• Be specific about numbers and examples
• Do not compare yourself to co-workers directly

When Should You Send a Salary Hike Letter?

Timing is everything. Ideally, you should send when:

• During your annual performance management review
• After you complete a project
• After you have taken on work or activities with greater responsibilities

Common Mistakes to Avoid

While everyone unintentionally makes mistakes, many people go astray by:

 

• Being vague about your meaningful contributions & successes
• Using an aggressive tone in your letter
• Forgetting you’re asking, not demanding.
• Not aligning your request with the company’s timing.
• Forgetting to review your letter.

Do your best to avoid these, and your Salary Hike letter will have a positive impact.

Conclusion

In conclusion, the primary goal of writing a Letter for a Salary Hike is not merely to ask for more money. It is a strategic communication that demonstrates the value you bring to your workplace. If you prepare, consider the structure and tone relative to your relationship with your employer. You can make a compelling and convincing case for your argument. Be confident, and in turn, be humble. Be specific, and in turn, be succinct. Most importantly, ensure your ask makes sense, nothing more, nothing less. 

So, start writing your salary today. And make one more step toward the compensation you deserve.

FAQs

Q1. Can I write a salary hike letter in the absence of a performance review?

Yes, you can! Especially if you have assumed additional responsibilities or completed projects of significance.

 

Q2. How long should my salary hike letter be?

The letter should not be more than 300-400 words, be specific, but also direct.

 

Q3. Should I write or mention my current salary in the letter?

It is not necessary. You should spend more time discussing performance and contributions.

 

Q4. Can I send this by email?

Yes. Email would work as long as it is professional and well-organized

Reading Time: 3 minutes

As social media and technology advance, starting an Online Business Without Investment is more real than ever. It doesn’t matter if you’re a student, at home, or working your normal 9 to 5. Especially if you are in HR management, you can create an online business with zero payment over and over again.

How to start? Let’s look at the best ways to make money online without any investment.

Freelancing: The Best Way to Jump Start Your Online Business

First, freelancing is the best and easiest way to earn money online. You can offer services like:

• Content writing
• Graphic designing
• Data entry
• HR consulting (resume building, interview training)

If you are an HR professional and you are in recruiting, training optimization, and employee engagement, freelancing is ideal.

Blogging and YouTube Channels

Next up is content creation. Blogging and vlogging are both creative. And it can be highly lucrative. All you need is:

• A niche of interest
• Consistency in content creation
• Basic knowledge of SEO

If you have an HR background, you can consider writing about employee relations. That doesn’t have to be too theoretical, performance reviews, or career growth tips. 

Affiliate Marketing

Then, affiliate marketing. It’s just like it sounds, affiliate marketing is when you promote products/brands. And earn commission for everything you sell. You don’t even need a website to start – social media works well too. You can start with:

• Amazon Associates
• Flipkart Affiliate
• SaaS or tech product affiliate programs

 

There are also many HR tech platforms (ATS, payroll, etc.) that have affiliate programs, too. You can use your existing industry knowledge. To recommend the tools you are already familiar with and earn passive income.

Dropshipping and Print-on-Demand

Believe it or not, you can still sell physical products without any inventory. Here’s how:

• Shopify or Etsy store
• Suppliers who warehouse, produce, and ship
• Market via Instagram or Pinterest

Mugs for the office or framed motivational posters to help build workplace culture.

Virtual Assistant Services

Tasks that are typically outsourced are:

• Email
• Data management
• Appointments
• HR document management

If you have administrative/organisational HR experience. As an Online Business Without Investment.

Human Resources Coaching or Consulting in an online business without investment

Another strong approach is offering career coaching, interview preparation, or resume reviews. HR people know all about candidate experience, hiring expectations, and talent development.

 

You could start with a free Zoom session. Or through some packages offered by LinkedIn or email marketing.

Reasons For An Online Business Without Investment

• No financial risk
• Flexible working hours
• Choose your clients

Conclusion

Clearly, starting an Online Business Without Investment does not mean you sacrifice quality or success. It is about using your common sense, using free items available. And offering services that people need. If you are a student, an entrepreneur, or in human resources. 

 

So, take the first step today! The digital world is your oyster – risk-free, cost-free, and easy to start.

FAQs

Q1. What is the easiest way to start an Online Business with NO Investment?

 Freelancing is the easiest and quickest way online, especially for beginners.

 

Q2. Can HR Professionals set up an online business?

 Of course! HR Professionals can consult, coach, and create content on coaching online and consulting.

 

Q3. How can I start making money from an Online Business?

 With freelancing or affiliate marketing, you could start making money in weeks! Blogging and YouTube take a longer time but can yield bigger returns.

 

Q4. Is there any risk in starting online?

 No, not financially. However, it will take time, effort, and skill-building to be successful.

 

Q5. Can I do this part-time?

 Absolutely. This is the great part about an online business. It can be flexible and scalable.