Looking to Benchmark Pay?
How many pay structures?
It’s common to find multiple structures within an organization and having this situation is usually a product of the types of jobs that exist in a company, the industry, the company culture, the market, and the compensation philosophy. Typically, multiple structures result when the external labor market shows different levels of supply and demand for different groups. As a result, the slope of the pay lines could be different for different job families.
You may have structures based on functional areas such as nursing, information technology, or other “hot skills” areas which the company has determined is more valuable. You may also have structures that vary by job levels, such as exempt, technical, executive, etc. This may be a result of using different job evaluation approaches. For example, union-negotiated production jobs may be in an automatic step increase structure, hourly jobs may be evaluated using point-factor job evaluation, and perhaps professional/management jobs are evaluated using a market-driven approach. So, each job group would have a separate salary structure.