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Guideline: Grade and Compensation fitment

Purpose

To establish a consistent and non-discriminatory approach for finalising Grade and Compensation for

selected applicants for open positions within TCS

Scope

These guidelines are applicable for the following categories of recruitment:

- EP

The scope of the guideline is:

- Overview of TCS Compensation

- Eplanation of !ey terms

a" #elevant Eperience

b" Grade

c" Compensation Charts

d" Compensation Components

- Procedure for fitment using Compensation Charts

Outline

Eligibility

Selected $pplicants for permanent full time employment

Provisions (Entitlements/Outcome)

The ob%ective of this document is to provide the steps for deciding the Grade to be assigned to an

applicant and the Compensation pac!age to be offered" TCS has defined Grade and Compensation

fitment charts for this purpose and the procedures section of this document eplains in detail how these

charts are to be used" &owever' in order to understand the procedure better' an Overview of TCS

Compensation and eplanation for !ey terms li!e #elevant Eperience' Grade' Compensation Charts andCompensation Components are re(uired' which are provided below"

Overview of CS Compensation

- Compensation is defined as salary' wages and other monetary benefits payable to an individual in

echange for services performed by that individual for an employer"

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- Compensation for an individual is first decided at the time that an applicant is offered employment in

TCS and ta!es effect after he)she %oins TCS" Post %oining the Compensation is revised on a periodic

basis *normally an annual process+ based on the employee,s career progression' performance within

the Organisation and the Organisation,s overall compensation strategy"

- Compensation in TCS is measured as total Cost to Company *CTC+ i"e" the total cost that the

company incurs through direct payments to the employee *basic salary' housing allowance' etc"+ andindirect payments towards employee benefits

E!planation of "ey terms

ollowing are the factors which decide the Compensation for an applicant at the time of recruitment:

#elevant Eperience

- #elevant eperience is defined as that part of an applicant,s total professional eperience which is

relevant to his)her current or future role in TCS"

- .t is one of the !ey factors for deciding the Grade fitment and Compensation

- The relevant eperience of the applicant is decided by the /anagement reviewer in consultation with

&# and entered in the /anagement evaluation form"

Grade

- TCS follows a Grade-based compensation structure"

- The grade for fitment is usually decided by relevant eperience"

E"g $n engineer with 0-1 years of relevant eperience is usually fitted at Grade C0' with 1-2 years of 

relevant eperience is fitted at C3 etc"

- 4ifferent Grade structures are defined for different dimensions *e"g" 4epartment' Practice)5usiness

6nit' etc"+ and may be revised periodically based on the strategy and needs of the Organisation"

Some eamples of Grade structures are provided below:

o Grade Structure 0*C Grades+: CC' &#' .S' Techcom' Corporate Communication)/ar!eting'

o Grade Structure 3*5PO Grades+ : 5PO

o Grade Structure 7*S Grades+ : inance' $dmin' 8ibrary' Shared Services

Compensation Charts

- $ Compensation Chart is a chart defined time to time which provides all the information re(uired tomap an applicant to a Grade and to decide the Compensation to be paid to him)her

- The Compensation charts may change or new charts may be added from time to time depending on

the business re(uirement"

imeline of #pplicability

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These guidelines are applicable during the offer) offer negotiation process while finali9ing the grade and

compensation of the applicant

Procedure

The procedure for Grade and Compensation fitment of Eperienced Professionals is as follows:

Get applicant details

The #ecruitment Team gets the following details of the applicant for Grade and Compensation fitment:

- #elevant Eperience *decided by the management interview panel during selection+

- 4epartment or 5usiness unit)practice for which the applicant is being recruited

- ualifications and $cademic institution of graduation)post-graduation

#ssign a Grade to t$e applicant

 The #ecruitment Team gets the #elevant Eperience from the interview evaluation records to find aGrade corresponding to the #elevant Eperience of the applicant"

%efine applicant&s Compensation

 $fter the applicant is fitted into a Grade' the Compensation is fied for that Grade and #elevant

Eperience"

'egotiate wit$ t$e applicant and #pprove deviations (if any)

0" This step is applicable only for EPs as the compensation incase of trainees is fied and non-

negotiable

3" The Compensation structure fied as per the previous step is discussed with the applicant"

;herever there is a gap wherein the applicant,s epectations are higher than the assigned Compensation

and it is critical to recruit the applicant to close the re(uirement' the #ecruitment team member tries to

bridge the gap

Communicate t$e final Compensation to t$e applicant

Once the Grade and Compensation fitment is completed' The #ecruitment team member communicates

the final Compensation to the applicant via email)telephone) in person and proceeds with the Offer 

process"

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#PPE'% #

Grade structure

 $ sample Grade structure for Computer Consultancy *CC+ department is provided and eplained below:

Grade

Code

*elevant

E!perience+

%esignation

 

Engineering

Graduate

/anagement

Graduate

4epartments:

&#)/ar!eting)Technical

Communication

< = to > 0 year $SE-T /T /T

C0 0 to >3 years $SE  $5$)$S$ Eecutive

C0 3 years to > 7 years $SE  $5$)$S$ Eecutive

C0 7 years to > 1years $SE  $5$)$S$ Eecutive

C3 1 years to > ? years .T$ 5$)S$ $ssistant /anager  

C3 ? years to > @ years .T$ 5$)S$ $ssistant /anager  

C3 @ years to > 2 years .T$ 5$)S$ $ssistant /anager  

C7$ 2 years to > A years $ST  $ST /anager 

C7$ A years to > B years $ST  $ST /anager 

C7$ B years to >0= years $ST  $ST /anager 

,egend:

 $SE-T - $ssistant System Engineer Trainee $SE - $ssistant System Engineer .T$ - .nformation Technology $nalyst

 $ST - $ssistant Consultant/T /anagement Trainee

 $5$)$S$ - $ssistant 5usiness $nalyst ) $ssistant System $nalyst

5$)S$ 5usiness $nalyst ) System $nalyst

+ 4ifferent ranges of relevant eperience are found mapping to the same grade' as the compensation will

vary based on the range of relevant eperience"

 $s displayed in the Table above' for a given Grade structure' the Grade for an applicant is purely a

function of the #elevant Eperience" #elevant Eperience is provided as a range mapped to a Grade"

/ore than one range of relevant eperience may map to the same Grade"

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The table above also provides a 4esignation code against each grade" 4esignation is a level assigned to

an employee which indicates his)her positioning in the Organisation"

Each grade structure has a uni(ue set of designations defined" /ultiple designations may map to the

same Grade *e: the designation for a person in the C0 Grade with engineering (ualifications is $SE'

whereas the designation for the same grade for a /anagement Graduate is $S$+

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