Pay Structures – Develop a Framework from Start to Finish

Introduction

• What is pay structuring
• Total Rewards Model
• Balance conflicting issues when designing the pay structure
• Introduction to the Case Study

Job Evaluation

• Grade basis for pay structure
• Alternatives to formal job evaluation:
• Informal assessment, ranking jobs, market pricing, skill / competency-based pay
• Formal job evaluation:
• Defining and establishing purpose of job evaluation
• Benefits and concerns about job evaluation
• Common formal job evaluation methods
• Point Factor
• Classification
• Grade structure alternatives
• Case Study – Job Evaluation:  Evaluation of positions in the organization using a classification method

Base Pay

• Base pay for pay structure – alternative options
• Benefits of using a flexible package base
• Creating scattergrams and lines of best fit / trend lines
• Case Study – Pay Base:  Drawing the line of best fit / pay midpoint for the internal pay data

Measuring the Market

• Market positioning of pay structure
• Factors to consider when choosing which market to measure
• Lead lag scenarios when choosing a date for market comparison
• Choosing different target market positions,  e.g., 25th Percentile, Average, Median, 75th Percentile
• Survey criteria when choosing which surveys to use
• Case Study – Measuring the Market:  Adding market data to the scattergram and re-drawing the line of best fit / pay midpoint for the data

Pay Mechanics (Structure Design)

• Pay mechanics
• Number of grades:  career bands, broad grades and narrow bands
• Pay ranges:  formulas and guidance on best practice
• Pay slopes:  formulas and guidance on best practice
• Pay overlap:  formulas and guidance on best practice
• Smoothing the pay curve: techniques and guidance on best practice
• Case Study – Pay Mechanics Part 1:  Calculating pay slopes and assessing the appropriateness of a smoothed pay line for this set of data
• Case Study – Pay Mechanics Part 2:  Deciding on appropriate pay ranges, calculating pay slopes, ranges and overlaps for this set of data
• A live web session will be held during the 5th week of class

Positioning Staff in the Pay Scale

• Options for employees below minimum of pay scale
• Options for employees above maximum of pay scale
• Market premiums:  guidance on types of premium and when they are necessary
• How to deal with sales positions
• Different ways of measuring position in the pay scale
• Policy positioning options for linking position in pay scale to performance and expertise
• Performance increase options
• Case Study –  Positioning staff in the pay scale:  Dealing with staff below minimum and above maximum; dealing with sales staff; deciding which staff need market premiums, the quantum of premiums and how they should be paid

Reviewing the Pay Scale

• Reviewing the pay structure
• Timing and frequency
• Measuring current position
• Measuring market movement and inflation
• Other external factors
• Other internal factors
• Differentiation for performance
• Structuring the review proposal
• Case Study –  Reviewing the Pay Scale:  Putting together a pay review presentation based on a scenario of internal and external factors

Conclusion

• Case Study and final presentation
• Live web session

This seminar is designed for compensation professionals and HR professionals with a need to understand theory and application of design and maintenance of pay structures and the processes that are integrated with them, such as job evaluation and market pricing.  Participants should have a basic understanding of Excel and general knowledge of compensation fundamentals.

• Register Online
• Call 1-877-951-9191 or 480-922-2020 for an Customer Relationship Services Representative
• E-mail customerrelations@worldatwork.org
• Fax  Registration Form to 1-866-816-2062 or 480-483-8352

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Get the best of both worlds and more! Combining learning and study preferences, Blended Learning leverages independent e-learning and collaborative traditional classroom experiences with access to additional resources.

• 24/7 access provides greater convenience and flexibility
• Class discussion board allows access to peers and subject matter expert
• Study when time allows
• Integration of group and independent study
• No “out of office” time needed
• No travel expense.

Components of Blended Learning

All Blended Learning classes include a class discussion board, other components available within Blended Learning will vary in order to deliver the best learning experience possible. Classes may include access to components such as:

• Live online session(s) with facilitator and peers
• Audio files
• Video files
• Articles and/or white papers
• Tools and templates
• Online quizzes

How Much Study Time Should I Plan For?

A: Blended Learning classes are either led by a facilitator or self-paced. The course duration varies depending on the depth of knowledge shared within the particular class.

Facilitator-Led Blended Learning:  All participants in these courses begin on the same day. You may access course materials any time—day or night—for 60 days after date of purchase.

• If there is a course book, the entire book is available starting on the first day. The e-learning modules, activities and discussion boards are divided into sections that are released weekly over a 4-8 week period, depending on the amount of content. View Course Matrix
  
  
• You will be able to view the course syllabus and course book (if applicable) starting on the first day. These are valuable tools to help you plan how much time you will want to spend in the course each week. It is recommended that you go through the materials carefully to gauge how long each e-learning module, case studies, activities, etc. will take you each week. (See sample class syllabus for facilitator-led classes).
  
  
• All facilitator-led courses include at least one live event where students and the facilitator come together in an online environment to discuss course material, group exercises, questions and answers, etc. Live web sessions are scheduled from 10 a.m. to 12 p.m. Pacific. Although these sessions are scheduled for two hours, they may or may not run that long. These sessions are recorded and are available for review soon after the event.
  
  
• Discussion boards are included in every course and are monitored by the facilitator. You can access the discussion boards at any time. These are a great way to interact with your facilitator and other course participants. You can post questions, read threads from other participants and the facilitator, and respond to what others have to say.

Self-Paced Blended Learning:  You can access your self-paced course shortly after you register. Some participants may have started before you, and others will start after you, based on their individual registration dates. You may access course materials any time—day or night—for 60 days after date of purchase.

• All course materials are available starting on the first day. The e-learning modules, and activities divided into sections so that you can easily determine how you want to allocate your time over the duration of your access. View Course Matrix
  
  
• You will be able to view the course syllabus and course book (if applicable) starting on the first day. These are valuable tools to help you plan ahead. It is recommended that you go through the materials carefully to gauge how long to spend in each e-learning module, case study, activity, etc. (See sample class syllabus for self-paced classes).

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