Build a base pay structure that is defensible, competitive, flexible, and practical.
Onsite Workshop
Without a well-defined base pay structure, organizations risk:
Increased labor costs
Decreased productivity from disengaged employees
Increased costs through employee turnover
Pay equity lawsuits
By designing a well-defined base pay structure, HR is able to:
Be confident that the base pay structure is equitable and aligned with the compensation philosophy
Empower managers as co-owners who engage their employees in pay discussions
Better move toward greater pay transparency
Module 1: Analyze Market Data
The Purpose
Identify metrics that will be used to determine project success.
Match benchmark job descriptions to market data capsules.
Match benchmark job salary data to market salary data.
Key Benefits Achieved
Key metrics identified.
Benchmark job descriptions matched to market data capsules.
Benchmark job salary data matched to market salary data.
Activities:
Outputs:
1.1
Set project metrics and take baseline measurements.
Project metrics and baseline measurements
1.2
Review benchmark jobs and determine market matches.
Benchmark jobs and market matches
1.3
Identify market salary data and apply weighting, using your compensation philosophy as a filter.
Market salary data and weightings based on your organization
Module 2: Create Base Pay Structure
The Purpose
Determine how many base pay structures the organization needs.
Identify benchmark job groupings to create preliminary pay grades.
Overlay organizational base pay data for both benchmark and non-benchmark roles.
Key Benefits Achieved
Number of pay structures determined.
Benchmark job groupings identified.
Finalized pay band structure determined.
Activities:
Outputs:
2.1
Determine how many base pay structures your organization needs.
Number of base pay structures
2.2
Develop preliminary pay bands using the market data for your benchmark jobs.
Preliminary pay bands
2.3
Develop finalized pay band structure by overlaying organizational base pay data.
Finalized pay band structure
Module 3: Set Salary Administration Guidelines and Transparency Strategy
The Purpose
Review existing salary administration guidelines and update accordingly to better suit new base pay structure(s).
Create a pay transparency plan.
Draft a communication plan that is well aligned with goals from the transparency strategy.
Key Benefits Achieved
Salary administration guidelines updated according to new base pay structure(s).
Pay transparency plan created.
Communications plan aligned to the transparency strategy drafted.
Activities:
Outputs:
3.1
Update your salary administration guidelines to suit your new base pay structure.
Updated Salary Administration Guidelines
3.2
Develop your pay transparency plan.
Pay Transparency Plan
3.3
Complete your pay transparency communication plan.
Pay Transparency Communications Plan
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Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.
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