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 jobs to market data and create preliminary pay bands.
Determine how many base pay structures the organization needs.
Key Benefits Achieved
Benchmark job descriptions matched to market data capsules.
Preliminary pay bands created and number of pay structures determined.
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 matched to appropriate market data
1.3
Weight and input market data.
Market data weighed based on market comparator criteria and inputted based on target market positioning.
1.4
Group jobs into grades and develop preliminary pay bands.
Preliminary pay bands developed.
1.5
Determine the number of base pay structures.
Number of base pay structures determined.
Module 2: Create Base Pay Structure
The Purpose
Overlay organizational base pay data for both benchmark and non-benchmark roles.
Model alternative base pay structure options and select the best-fit option.
Key Benefits Achieved
Finalized pay band structure determined.
Activities:
Outputs:
2.1
Review and adjust the range spread, range overlap, and midpoints of preliminary pay bands.
Preliminary pay bands reviewed.
2.2
Compare against organizational data and adjust preliminary pay bands.
Preliminary pay bands compared against organizational data and adjusted as appropriate.
2.3
Model base pay structure alternatives.
Alternative base pay structures modeled.
2.4
Select the best-fit base pay structure.
Best-fit base pay structure selected.
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
Develop salary administration guidelines.
Salary Administration Guidelines
3.2
Evaluate current state of pay transparency.
State of pay transparency assessed.
3.3
Determine desired future state of pay transparency.
Future state of pay transparency outlined.
3.4
Develop a pay transparency strategy.
Pay transparency strategy developed.
3.5
Craft a communications plan.
Communications plan created.
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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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