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DESIGNING PAY LEVELS,
MIX AND PAY STRUCTURE (MAJOR DECISIONS (Specify…
DESIGNING PAY LEVELS,
MIX AND PAY STRUCTURE
MAJOR DECISIONS
Specify Competitive Pay Policy
- Translating any external pay policy into practice requires information on the external market.
Purpose of Survey
- Adjust pay level
- Adjust pay mix
- Adjust Pat Structure
- Study special situations
- Estimate competitors' labor costs
Select Relevant Market Competitors
- Relevant labor market includes employers who compete for same occupations or skills, for employees in same geographic area and with same products and services.
Design the Survey
- Compensation manager, managers and employees should be involved
- Benchmark-job approach and low high approach should be included.
- Organization data and total compensation data should be collected
Interpret Survey results
- Verify data
- Statistical analysis
- Update the survey data
- Construct market pay line
-Setting pay for benchmark and non-benchmark jobs
-Combine internal structure and external structure
FROM POLICY
TO PRACTICE
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Grades and Ranges
-
Establish range midpoints,
minimums and maximums
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Broad Banding
-
Steps:
- Set the number of bands
- Price the band:
reference market rates
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