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Compensation, salary structures and job evaluation


Course Introduction

A fundamental component of reward management and HR is a grade and basic salary structure, and these are often taken for granted. Rather than make changes, HR and reward professionals try to fit the ever-changing needs of their employees into a system that may not have been reviewed for many years.

Course Objectives

This course will provide you with the information and guidance to ensure your salary and grading structure meets your business needs, while allowing the company to attract and retain employees in an increasingly competitive pay market.  This course is aimed at both HR Generalists and Reward Specialists to help you review and revise your grading structure and salary structure to fit the ever-changing needs of your employees into a system that may not have been reviewed for many years.

Most employers want to ensure that they can “attract, retain and motivate” the best employees and teams, and this three-day course will cover the key areas in the overall compensation and benefits package that enable employers to adopt best-practices and compete more effectively in the war for talent whilst achieving cost-effectiveness for the employer.

Course Methodology

You will be provided with the information you need to make changes to your grading and salary structure. You will have an opportunity to test various ideas and to establish what may work for you. You will also be given access to various tools and techniques, as well as information on the latest trends and developments both in Asia and globally.  This course will involve working both individually in teams on practical case studies to gain detailed hands-on experience using the various tools and techniques that will be discussed throughout the course.

Who Should Attend?

This course is designed for everyone who requires an in-depth knowledge of working with and managing salary structures and compensation and reward issues, including all professionals and HR Generalists who work in HR at all career levels, and all C&B Specialists who work in Compensation and Benefits.


  • The golden triangle of Reward Management (jobs, people and performance, and pay markets)
  • Why is compensation and reward management important?
  • The role of grading and salary structures in compensation and reward
  • How grading and salary structures have developed in Asia and Globally

Key Components of Pay Market Benchmarking and Compensation Design

  • The four necessary ingredients for successful remuneration design:
    • Pay Strategy
    • Grade Structure
    • Market Data
    • Number of Months

Ingredient-1 of Pay Strategy

  • Understanding the key Definitions, Statistics, and Modern Approaches
  • Knowing the key pay components and defining the appropriate pay market
  • Selecting the right pay market position and understanding sector pay
  • Determining a pay strategy benchmark and reward strategy
  • Linking the pay strategy and reward strategy to the HR strategy and business goals
  • How to assess if your pay structure is meeting your business objectives
  • Managing the balance between employee expectations and ability-to-pay

Ingredient-2 of Grade Structure

  • The role of job evaluation and the main job evaluation systems
  • The key job evaluation approaches and methodologies
  • The internal role to develop the grading structure
  • The external role to enable pay market benchmarking
  • Building the grade structure and determining how many grades
  • Understanding “single-step” and “double-step” grades
  • The pros and cons of broad banding in different organizational cultures
  • The new trend back towards more grades to both manage costs and improve employee careers
  • The future trend of “agility”

Ingredient-3 of Market Data

  • Understanding different types of market pay surveys and definitions
  • Knowing how to interpret and utilize external pay market survey data and pay surveys
  • Using survey data from consultants or gathering your own survey data
  • Using salary surveys and market pay benchmarking tools in salary structure design

Ingredient-4 of Months

  • Are you designing for 12 or 13 or 14 guaranteed months (plus variable bonuses/incentives)

Simple Benchmarking and Developing Grading and Basic Salary Structures

  • Bringing all 4-ingredients together to design basic salary structures
  • Practical exercise on building a spreadsheet to analyses “basic salary” for benchmarking
  • Definition and types of basic pay structures
  • Selecting a grade and salary structure to meet your needs
  • Benchmarking and designing a grading and salary structure

Designing Salary Pay scales and Compensation Structures

  • Establishing the midpoint of the pay-range for each grade
  • Determining the minimum and maximum salaries for pay-ranges
  • The various calculation formulae for determining minimum midpoint maximum
  • The single-step approach (80%-120%) and the double-step approach (70%-130%)
  • Defining and using compa-ratios and managing pay-ranges and position-in-range

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