Salary Administration
Overview:
Salary administration (also referred to as base pay administration), consists of the activities involved in setting and maintaining pay levels, in order to provide competitive and equitable pay to all employees. The first step in developing a salary administration program is to prepare job descriptions, which are then utilized to conduct a competitive market study. Thereafter, a salary structure comprised of grades and ranges is developed. Finally, formal policies and procedures need to be designed in order to administer the program. A properly developed salary administration program will allow a company to attract, retain, and motivate employees.
Issues To Be Considered In Setting Base Pay:
- Company's vision & future direction
- Company's philosophy on compensation or compensation strategy
- The purpose of the program
- Competitive position within marketplace
How We Can Help:
Develop Compensation Strategy:
We would gather information through direct interviews regarding the pay philosophy of the organization, and thereafter develop the proper compensation strategy based on your needs. The compensation strategy will serve as the foundation to developing the salary administration program, and well as other compensation initiatives.
Develop Salary Administration Program:
We would undertake the following steps to develop the appropriate salary administration program for your company:
1. Assess current pay methods; determine strengths & weaknesses
2. Collect job information that identifies duties and responsibilities
3. Select a list of benchmark jobs
4. Conduct a competitive market study
5. Prepare a salary structure reflective of the company’s intended position within its market
6. Slot benchmark & non-benchmark jobs into the salary structure
7. Evaluate hierarchy for external & internal equity
8. Determine cost impact of newly designed salary structure
Prepare Implementation Plan:
1. Prepare formal documentation for proper administration that enables the company to:
o Establish and maintain policies and procedures
o Review current jobs for market competitiveness
o Prepare merit and salary increase budgets
o Monitor and maintain the salary structure
o Maintain internal equity and external competitiveness
o Ensure salary administration program complies with applicable laws
2. Assist with implementation and communication, including:
o Training HR to ensure consistent application
o Communication to management on their involvement in administration
o Communicating to staff to ensure complete understanding
o Addressing transitional issues
To further discuss your Salary Administration needs, please contact:
Mary Rizzuti, PHR at (877) 934-0505 x107 mar@compensationresources.com
Sara Schmidt at (877) 934-0505 x110 sds@compensationresources.com
