Base Pay Administration

Overview:

The fundamental building block of the total compensation package.  It sets the levels of most of the other major components of compensation such as incentive awards, benefits, etc.  Even though it may eventually represent only a proportion of total compensation, compensation committees must first decide what they want base salary to achieve.   Before setting the level of base salary, the board and the compensation committee should set its purpose and they should define it.

Issues To Be Considered In Setting Base Pay:

• Company's vision & future direction
• Company's philosophy on compensation
• Proportion of total compensation, which may vary by position/hierarchy
• Competitive position within marketplace

How We Can Help:

• Compensation Strategy

We would gather information through direct interviews regarding the pay philosophy of the organization, and thereafter develop the proper strategy based on your needs

• Develop a Salary Administration Program:

We would go through the following steps to develop the right structure for your company         

1. Assess the current pay methods and determine strengths & weaknesses
   
2. Collect job information that identifies the tasks, duties, and responsibilities of a particular job
   
3. Select a representative list of benchmark jobs and conduct a compensation market analysis to determine the competitive rates of pay for each of these positions
   
4. Prepare a salary structure reflective of the competitive market and the company’s intended position within its market
   
5. Slot benchmark & non-benchmark jobs and evaluate hierarchy for external & internal equity
   
6. Determine cost impact of newly designed salary structure
   
7. Prepare formal documentation for proper administration that enables the company to: 
   
   • Establish and maintain policies and procedures
   • Review current jobs for market competitiveness
   • Prepare merit and salary increase budgets
   • Monitor and maintain salary structures
   • Maintain internal equity and external competitiveness
   • Ensure compensation program complies with applicable laws
     
8. Assist with implementation and communication, including:

• Training HR to ensure consistent application
• Communication to management on their involvement in administration
• Communicating to staff to ensure complete understanding
• Addressing transitional issues