Design a Base Pay Structure

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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