Creating a Market Competitive Salary Structure

Course Contents

1. Introduction
   - page 1
2. Developing a Salary Structure
   - page 2
   • Current Pay Rates
     - page 2
   • Benchmark Jobs
     - page 2
   • Market Rates
     - page 2
   • Compensation Strategy
     - page 3
   • Aging the Market Data
     - page 4
   • Pricing a Job Structure
     - page 4
   • Developing the Pay-Policy Line
     - page 5
     • Low-high Line
       - page 5
     • Freehand Line
       - page 5
     • Least-squares Line
       - page 5
   • Multiple Salary Structures
     - page 6
3. Completing the Salary Structure
   - page 7
   • Pay Grades
     - page 7
     • Broadbanding
       - page 8
     • How to Set Pay Grades
       - page 9
       • Cluster Approach
         - page 9
       • Division Approach
         - page 9
       • Mid-point Progression Approach
         - page 9
       • Continuum Approach
         - page 9
   • Rate Ranges
     - page 10
   • Compa-ratio Report
     - page 11
   • Approval of the Annual Compensation Plan
     - page 12
4. Implementing the Salary Structure
   - page 12
   • Salary Increase Administration
     - page 12
   • Merit Increase Guidelines
     - page 13
   • Ongoing Salary Structure Maintenance
     - page 14
5. Interactive Exercise
   - page 15
   • Your Turn
     - page 16
6. Summary
   - page 17