Pay Structures – Develop a Framework from Start to Finish
In this course, you will learn how to develop, administer and maintain pay structures that are aligned with your organizational goals and pay philosophies—giving you the flexibility to perform this work in house, saving time and money. You will begin the course with an overview of pay structures and job evaluation methods, and then move into other important skills.
Explore how to perform job evaluation.
Learn to apply different types of salary grades.
Utilize market data and company pay philosophies.
Gain an understanding on how to use tools and formulas to help develop a pay structure.
Discover how to manage employees’ pay using the pay structure.
Consider key issues when reviewing the pay structure each year.
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)
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
Case Study and final presentation
Live web session
Who Should Register
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.
Dianne Auld, GRP, CCP, CSCP, owns a consulting practice, Auld Compensation Consulting, in Cape Town, South Africa. She consults in all areas of total rewards to a wide range of organizations across Africa and the Middle East. She has developed and taught courses in Africa, the Middle East, Europe, and the United States.
Dianne is also a faculty member at WorldatWork and a reviewer for the WorldatWorkJournal. Well respected and known as an expert in Excel, Dianne has worked with WorldatWork to develop several products to assist compensation professionals with their day-to-day tasks in Excel. Together with WorldatWork, Dianne has developed two new WorldatWork Blended Learning courses, “Excel Skills for Compensation Professionals” and “Pay Structures – Developing a Framework from Start to Finish”, as well as Excel Tips for Compensation Professionals, which include sleek visual and audio demonstrations of tasks compensation professionals need to perform in their job function.