How do you review a salary structure?

How to Establish Salary Ranges

1. Step 1: Determine the Organization’s Compensation Philosophy.
2. Step 2: Conduct a Job Analysis.
3. Step 3: Group into Job Families.
4. Step 4: Rank Positions Using a Job Evaluation Method.
5. Step 5: Conduct Market Research.
6. Step 6: Create Job Grades.
7. Step 7: Create a Salary Range Based on Research.

What are 4 common pay structures?

Market-based pay structures determine salary ranges and pay grades based on a current market analysis of comparable positions and salaries….Market-based

• Pay grade1: $65,000-$70,000.
• Pay grade 2: $70,001-$75,000.
• Pay grade 3: $75,001-$80,000.
• Pay grade 4: $80,001-$85,000.
• Pay grade 5: $85,001-$90,000.

What are the different salary structures?

3 Types of Salary Structure | Traditional, Broadband, & Market-based.

What salary range should I give?

A good rule of thumb is to keep the lower end of your range at least 10 percent above your current salary, or the number you determine is a reasonable salary for the position. For example, if you currently earn $50,000, you may say that your range is $55,000 to $65,000.

How do you conduct a salary analysis?

Paying Employees: How to Do a Salary Competitive Analysis

1. Research compensation trends.
2. Conduct a job analysis.
3. Set a pay range for each position.
4. Know the legal requirements.
5. Be transparent about your pay scale.
6. Train your managers.
7. Re-evaluate frequently.

How do you design a pay structure?

☛ Steps to assign pay rates to pay grades (or each job) ☞ First, find the average pay for each pay grade, since each of the pay grades consists of several jobs. ☞ Next, plot the average pay rates for each pay grade. ☞ Then, fit a line, called salary or wage line, through the points just plotted.

What is job based pay structure?

A job based pay structure is a structure of salary payments that is built on compensable factors determined by the job. In other words the salary for a job is determined by its responsibilities, and sometimes its work conditions.

What is pay matrix level?

The pay matrix comprises two dimensions. It has a “horizontal range” in which each level corresponds to a ‘functional role in the hierarchy’ and has been assigned the numbers 1, 2, and 3 and so on till 18. The “vertical range” for each level denotes ‘pay progression’ within that level.

Is it OK to ask the salary range?

You need timing and tact By the second interview, it’s usually acceptable to ask about compensation, but tact is key. Express your interest in the job and the strengths you would bring to it before asking for the salary range. Make the employer feel confident you’re there for more than just the paycheck.