- Traditional base pay structures are seen as bureaucratic red tape that hinders a manager’s hiring ability.
- Designing base pay structures can be complex, requiring accurate data collection and a significant time investment from HR and managers.
- Pay transparency is difficult given the sensitive and highly confidential nature of pay information.
A credible compensation structure provides the foundation for increased pay transparency, and a hybrid approach to building the structure enables the right balance between flexibility and standardization to ensure equity and fairness.
Impact and Result
- Design a pay structure that is internally and externally equitable by balancing the internal job worth hierarchy with external market competitiveness.
- Leverage McLean & Company’s approach to building a hybrid pay structure that benefits from the advantages of the traditional and broadband approaches.
- Empower managers by involving them in matching benchmarked jobs with market data and educating them on salary administration guidelines.
This program has been approved for continuing professional development (CPD) hours under Section A of the Continuing Professional Development (CPD) Log of the Human Resource Professionals Association (HRPA).
McLean & Company is recognized by SHRM and can award Professional Development Credits (PDCs) for the SHRM-CP® or SHRM-SCP®.
HR Certification Institute’s® official seal confirms that McLean & Company meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR® and PHR®.
How to complete this course:
Use these videos, along with the Project Blueprint deck above, to gain an understanding of the subject. Start with the Introduction, then move through each of the Course Modules. At the end of each Module, you will be required to complete a short test to demonstrate your understanding. You will complete this course when you have completed all of the course tests.
- Number of Course Modules: 5
- Estimated Completion Time: 2 hours
Explain the rationale for developing foundational compensation programs (compensation philosophy, job evaluation, and base pay structure) and how they guide compensation decisions in alignment with organizational strategy.
By the end of this course, learners will be able to:
- Explain how a compensation philosophy guides the creation of other compensation programs.
- Articulate how an objective job worth hierarchy promotes internal equity and the value that brings to the organization.
- Describe the basic steps of creating a base pay structure while balancing internal equity (i.e. job worth hierarchy) with external equity (i.e. market data).