Compensation Systems Explained: Essentials of Creating Pay Structures

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