Salary Administration

Optimizing Compensation Strategies & Salary Structures

The need for formalized base pay management is imperative to a company’s operational efficiency. Salary administration (also referred to as base pay administration) provides structure to compensation initiatives by conducting competitive benchmarking, developing a salary structure, and drafting a salary administration policy to help HR and leadership make valid and consistent compensation decisions.

Key Considerations for Setting Base Pay

When setting base compensation, consider your company’s:

Vision and future direction
Compensation strategy
Competitive position within the marketplace

Our Salary Administration Services

Develop a compensation strategy – We gather information through direct interviews to understand the organization's pay philosophy and then develop the appropriate compensation strategy. The compensation strategy serves as the foundation for developing the salary administration program as well as other compensation initiatives.

Develop a salary administration program – We undertake the following steps to develop the appropriate salary administration program:

Assess current pay methods and determine strengths and weaknesses
Collect job position information that identifies duties and responsibilities
Select a list of benchmark jobs
Conduct a competitive market study
Develop a base pay structure reflective of the company’s intended position within its market
Slot benchmark and non-benchmark jobs into the salary structure
Evaluate hierarchy for external and internal equity
Determine the cost impact of the newly designed salary structure
Draft the salary administration program manual

Implementation & Ongoing Salary Administration Support

Prepare the implementation plan – We will prepare formal documentation for proper administration that enables the company to:

Establish and maintain salary administration policies and procedures
Review current jobs for market competitiveness
Prepare merit and salary increase budgets
Monitor and maintain base pay structures
Maintain internal equity and external competitiveness
Confirm that the salary administration program complies with applicable laws

Thereafter, we will assist with implementation and communication, including:

Training HR for consistent base pay management application
Communicating with management on their involvement in administration
Addressing transitional issues
Communicating with staff to establish a complete understanding

Why Choose Us for Base Pay Administration?

“We first engaged Compensation Resources in 2015, and they helped us establish a logical, systematic way of evaluating compensation. They helped us with our Salary Administration Policy (SAP), which has stood the test of time. The Compensation Resources team is professional, easy to work with, and knowledgeable.”

-Controller, Not-for-Profit Social Services