In this training program, participants will understand the
fundamental concepts of creating a compensation system. They will receive
information on the concepts of: compensation policy, internal and external
equity, ranges, grades, position analysis, job evaluation systems, and point
factor systems, benchmark positions, using market analysis to establish pay
ranges and midpoints, options for movement through salary ranges, and calculating
compa-ratios. Sample pay grade with variable ranges will also be discussed in
the session.
Best practices relating to base salary is a fixed amount of
money paid to an employee by an employer in return for work performed. Understand
why developing a company philosophy on base salary structure is important and
discusses how managers can work with different approaches for their company.
The two usual approaches for base salary structure creation are identified (pay
for the job and pay for the person) and explained. Readers are then introduced
to the concepts of broadband and salary ranges. How broadband and salary ranges
function and why they are vital in the creation of a base salary structure.
Readers are also taught the practical issues surrounding base pay structure
from the four perspectives: people, economic, risk, and operational.
Less than half the companies with fewer than 100 employees
have formal salary structures and only 70% of all U.S. companies have such
structures. Yet almost all companies report that they have hard-to-recruit
positions and they are vulnerable to loosing top talent. Having a competitive
well-designed compensation system has long been a corner stone of employee
recruitment and retention and regardless of the economy, it is critical to have
a competitive compensation structure that fulfils your company's goals. This
webinar will give you the tools to get started in developing a base pay plan or
tune up your current plan. It will present a broad overview of the philosophy and
application of compensation systems.
Here are ten steps to develop a salary structure for your
organization, with some special considerations for international developing
markets:
- Establish your compensation philosophy
- Gather market data
- Identify benchmark jobs
- Measure your market position
- Calculate the compa-ratio
- Check your budget
- Start allocating
- Final adjustments
- Management approval
- Communicate
Register yourself for this brainstorming session Now- Compensation Systems Explained: Essentials of Creating Pay Structures