Designing a Geographic Salary Structure

Course Number:	83
Category:	Salary Structures
Field of Study:	Specialized Knowledge
Audience:	Compensation Professionals, HR Managers, HR Generalists
Level of Difficulty:	Intermediate
Delivery Method:	QAS Self Study
Prerequisites:	Moderate algebraic training. DLC Course 82: Creating a Competitive Salary Structure
Advanced Preparation:	None
SHRM BASK:	As defined by the SHRM Body of Applied Skills and Knowledge (BASK), this self-study course covers competencies in HR Expertise and Analytical Aptitude with functional areas in Total Rewards.
Overview	The cost of labor in different labor markets affects salary structures and pay practices. If your organization has branch offices, manufacturing plants, or warehouses in multiple locations, including other countries, you will need to know which salary structure works best for them. You will learn whether you should use the headquarters’ pay structure, adjust the headquarters’ pay structure, or develop an entirely new localized pay structure to ensure appropriate pay at dispersed locations. You will also learn how pay policy impacts pay ranges and how salary grades help to maintain internal pay equity. Additionally, there will be a discussion about whether cost of living influences pay rates and whether pay should be based on national, regional, or city and local market rates.
Learning Objectives:	Identify why the headquarters, branch offices, manufacturing plants, and warehouses, may need different salary structures Recognize how labor markets and the cost of living influence salary rates Define how salary grades maintain internal pay equity Specify how pay ranges are affected by changing the pay policy line Recognize when adjusting an existing salary structure is not enough and a new structure needs to be created Differentiate between market pricing and cost of labor and which one to use in determining a pay structure for facilities away from headquarters Identify when to use pay rates at the state, regional, and city/local level Specify when it is appropriate to use bonuses and cost-of-living allowances as an alternative to adjusting a pay structure Define what “Market Index” is and how to use it Recognize how branch office benefits may be affected by location
Credit & Professional Continuing Education Information:	SHRM-CP/SHRM-SCP Credit Information: ERI Distance Learning Center is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP^® or SHRM-SCP^® recertification activities. This program is valid for 1.5 PDCs for the SHRM-CP^® or SHRM-SCP^®. For more information about certification or recertification, please visit www.shrmcertification.org. aPHR/PHR/SPHR/GPHR Credit Information: ERI Distance Learning Center is a recognized provider of recertification credits. The HR Certification Institute^® (HRCI^®) has pre-approved this activity for 1.5 HR (General) credit hour(s) towards aPHR^™, PHR^®, SPHR^®, and GPHR^® recertification. HR Certification Institute’s^® (www.HRCI.org) official seal confirms that ERI Distance Learning Center meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR^® and PHR^®. CCP/CBP/GRP/WLCP Credit Information: This online course qualifies for recertification credit for the Certified Compensation Professional (CCP^®), Certified Benefits Professional^® (CBP), Global Remuneration Professional (GRP^®), and Work-Life Certified Professional (WLCP^®) designations granted by WorldatWork Society of Certified Professionals. For more information on recertification, visit the Society website at www.worldatworksociety.org. CPE QAS Self Study Credit Information: National Registry QAS Self Study - Course approved for 1.5 credit(s) in these states: Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virgin Islands, Virginia, Washington, West Virginia, Wyoming Course approved for 1 credit(s) in Vermont Start Free Course Buy Courses For Credit
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