2013 How To Build Pay Grades and Salary Ranges PDF
2013 How To Build Pay Grades and Salary Ranges PDF
2013 How To Build Pay Grades and Salary Ranges PDF
2500 Customers
35 Million Salary
Profiles
13,000 Positions
250 Compensable
Factors
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AGENDA
o Why pay structure.
o Requirements for building structure.
o Building Structure.
o
Compa-Ratio.
o Maintaining structure.
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Requirements
o Compensation philosophy.
o Organization-wide job evaluations.
o External market analysis.
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Sales.
Engineers vs Admin.
Locations.
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The vertical distance between the highest and lowest level job.
How finely the organization defines jobs and differentiates between them
(i.e. levels).
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=(MidB-MidA)/MidA
o Range Spread.
o
=(Max-Min)/Min
=Mid/(1+(Range Spread/2))
=Min*(1+Range Spread)
Range
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
Range
Width
40%
41%
42%
43%
44%
45%
46%
47%
48%
49%
50%
52%
54%
56%
58%
60%
62%
Min
$8.50
$9.75
$11.25
$12.75
$14.75
$16.75
$19.25
$22.00
$25.25
$29.00
$33.25
$37.75
$43.25
$49.25
$56.25
$64.25
$73.25
Mid
$10.25
$11.75
$13.50
$15.50
$18.00
$20.50
$23.75
$27.25
$31.25
$36.00
$41.50
$47.75
$54.75
$63.00
$72.50
$83.50
$96.00
Max
$12.00
$13.75
$16.00
$18.25
$21.25
$24.50
$28.25
$32.50
$37.50
$43.25
$49.75
$57.50
$66.50
$76.75
$88.75
$102.75
$118.50
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Considerations:
o Difference at the base vs top of structure.
o
Time to proficiency.
Manager input.
Grade
Internal Title
Grade
Internal Title
Grade
11
13
14
11
13
Corporate Accountant I
14
11
13
NOC Technician I
14
13
TAC Engineer II
14
12
Marketing Coordinator
13
12
Office Manager
13
Corporate Accountant II
15
12
Project Coordinator
13
NOC Technician II
15
12
13
Project Manager I
15
12
13
Software Development QA I
15
12
TAC Engineer I
13
15
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Guidelines or Policies.
o Develop guidelines or policies about:
o Where new employees enter ranges.
o How current employees move within ranges.
= EE Pay / Midpoint
In Practice:
o Compa-Ratio:
o
1 is Midpoint.
Compa-ratio range varies by comp strategy and more, starting guideline is .9-1.1
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Maintaining
Compensation Structure
o New positions.
o Evaluate ranges to market.
o
Hot jobs.
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