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 through conducting competitive benchmarking, developing salary structure and drafting salary administration manual for validity and consistency of salary decisions.

Issues to be Considered in Setting Base Pay:

  • Company’s vision and future direction
  • Company’s compensation strategy
  • Competitive position within marketplace


Develop a Compensation Strategy – We gather information through direct interviews regarding the pay philosophy of the organization, and thereafter develop the proper compensation strategy. The compensation strategy serves as the foundation for developing the base pay administration program as well as other compensation initiatives.

Develop Base Pay Administration Program – We would undertake the following steps to develop the appropriate salary administration program:

  1. Assess current pay methods; determine strengths and weaknesses
  2. Collect position information that identifies duties and responsibilities
  3. Select a list of benchmark jobs
  4. Conduct a competitive market study
  5. Develop a salary structure reflective of the company’s intended position within its market
  6. Slot benchmark and non-benchmark jobs into the salary structure
  7. Evaluate hierarchy for external and internal equity
  8. Determine cost impact of newly designed salary structure
  9. Draft salary administration manual

Prepare Implementation Plan – We will 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 structure
  • Maintain internal equity and external competitiveness
  • Ensure salary administration program complies with applicable laws

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

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

To further discuss your salary administration needs, please contact:

Mary A. Rizzuti, CCP, PHR, SHRM-CP

Contact Mary


Diana D. Neelman, CCP, SHRM-CP
Senior Director

Contact Diana

Sara D. Schmidt, CCP, PHR, SHRM-CP

Contact Sara