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Step 1: Establish overall pay range. Determine a company minimum and a company maximum pay. Step 2: Establish number of grades. Step 3: Establish a range per grade. Step 4: Create pay grade chart. Step 5: Review and amend.
Step 1: Determine the Organization's Compensation Philosophy. Step 2: Conduct a Job Analysis. Step 3: Group into Job Families. Step 4: Rank Positions Using a Job Evaluation Method. Step 5: Conduct Market Research. Step 6: Create Job Grades. Step 7: Create a Salary Range Based on Research.
Establish value for each position in your company. Consider your company's competitive posture. Define compensate leverage for your company. Look at external inequalities. Develop a salary structure for your organization. Get your current employees up to par.
Conduct a review on a regular schedule or tied to specific events. Listen to managers Link the salary structure back to HR strategy and the market. Look broadly when necessary. Communicate the results.
Step 1: Determine the Organization's Compensation Philosophy. Step 2: Conduct a Job Analysis. Step 3: Group into Job Families. Step 4: Rank Positions Using a Job Evaluation Method. Step 5: Conduct Market Research. Step 6: Create Job Grades. Step 7: Create a Salary Range Based on Research.
Establish value for each position in your company. Consider your company's competitive posture. Define compensate leverage for your company. Look at external inequalities. Develop a salary structure for your organization.
Some may wonder what compensation structures are. Loosely, compensation structure refers to the various ways that companies can organize their pay practices. They provide guidelines for pay that help organizations identify whether their pay is in bounds.
A salary structure, or pay scale, is a system that employers use to determine an employee's compensation. A standard salary structure takes into account things like merit, length of employment, and pay compared to similar positions. Create a minimum and maximum salary within the structure.
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