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Compensation, salary structures and job evaluation



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

At the end of this course the participants will be able 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. 
  •  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.
  •  Ensure that you can “attract, retain and motivate” the best employees and teams. 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.

Targeted Audience:

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.

Course Outlines:

Unit 1: 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

Unit 2:  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”

Unit3: 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

Unit 4:  Months

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

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