CHAPTER 8- Designing Pay Levels, Mix and Pay Structure ( Interpret Survey…
- Designing Pay Levels, Mix and Pay Structure
From Policy to Practice: Grades and Ranges
Why bother with grades and ranges?
Differences in the productivity or value of these quality variations
Differences in the mix of pay forms competitors use
Differences in quality among individuals applying for work
Promotion increase matter
Purpose of a Survey
Adjust Pay Structure?
Study Special Situations
Adjust Pay Mix- What forms?
Estimate Competitors' Labor Costs
Adjust Pay Level - How much to pay?
Design the Survey
How many employers?
Which jobs to include?
Benchmark conversion/survey leveling
Who should be involved?
What information to collect?
Total compensation data
Select Relevant Market Competitors
Employees within the same geographic area
The same products and services
The same occupations or skills
Interpret Survey Results and Construct a Market Line
Update the survey data
Construct a market pay line
Setting pay for benchmark and non-benchmark jobs
Accuracy of match (and improving the match)
Combine internal structure and external market rates
Form Policy to Practice: The Pay-Policy Line
Policy line as percent
Choice of measure