Mastering Salary Scales
Sandrine Bardot – Compensationinsider.com
JEs are done – now do you go about
creating your salary ranges ?






How many salary structures you should create
T...
What is the maximum number of salary
ranges needed ?
1
2
3
That’s it !
© Sandrine Bardot 2013
Defining pay – Various options


Spot rates



Pay spines



Narrow pay ranges



Broad band salary structures

© Sand...
Narrow banding









Prevalent approach in the region
Good for traditional, pyramid companies with many
junior, y...
Broad banding











Good for start-ups and companies with big focus on
competencies and lateral career develop...
Salary ranges – building them

© Sandrine Bardot 2013

Image from eridlc.com
Design decisions







Target position to market :
 Define peer group
 Target percentile
 Aging the data : lead/l...
Setting up midpoints
Multiple options :
 One survey, results to midpoint
 Reflect weight of jobs in your company (use th...
Want to read more ?

http://compensationinsider.com/all-you-need-to-knowfrom-compensation-surveys-to-salary-ranges-andsala...
Thank you !
+971 566 172 864
Sandrine@CompensationInsider.com
240+ free articles on C&B !
Subscribe at:
http://Compensatio...
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How To Master Salary Scales – Practical Considerations For Your Organisation, Sandrine Bardot

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You’ve performed your job analysis and have evaluated positions in your organisation. How do you now create your salary scales ? In this session you will learn :
• The different types of salary grading structures (broad banding, narrow banding…) and their pros and cons
• How many salary structures should you create ?
• Deciding on the overall design of your salary ranges
• From simple to sophisticated: different approaches to calculating your minimum, mid, and maximum salaries for each grade.


This presentation was used at HR Summit and Expo 2013 www.hrsummitexpo.com

Published in: Business, Technology
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How To Master Salary Scales – Practical Considerations For Your Organisation, Sandrine Bardot

  1. 1. Mastering Salary Scales Sandrine Bardot – Compensationinsider.com
  2. 2. JEs are done – now do you go about creating your salary ranges ?      How many salary structures you should create The different types of salary grading structures Considerations for participating to salary surveys Deciding on the overall design of your salary ranges From simple to sophisticated : different approaches to calculating your midpoints © Sandrine Bardot 2013
  3. 3. What is the maximum number of salary ranges needed ? 1 2 3 That’s it ! © Sandrine Bardot 2013
  4. 4. Defining pay – Various options  Spot rates  Pay spines  Narrow pay ranges  Broad band salary structures © Sandrine Bardot 2013
  5. 5. Narrow banding       Prevalent approach in the region Good for traditional, pyramid companies with many junior, young employees Not so good in professional service firms and for managerial roles. Clear sense of evolution Cost control due to low max of range Regular opportunity for promo © Sandrine Bardot 2013
  6. 6. Broad banding        Good for start-ups and companies with big focus on competencies and lateral career development. More compensation education needed for managers Fewer promotions : requires more focus on pay-forperformance Some form of traditional job evaluation still needed to participate to compensation surveys Create “payzones” ? Less cost control on salary increases Less social proof of employee success and progress © Sandrine Bardot 2013
  7. 7. Salary ranges – building them © Sandrine Bardot 2013 Image from eridlc.com
  8. 8. Design decisions      Target position to market :  Define peer group  Target percentile  Aging the data : lead/lag philosophy Decide on your paymix Step Spread Symmetry © Sandrine Bardot 2013
  9. 9. Setting up midpoints Multiple options :  One survey, results to midpoint  Reflect weight of jobs in your company (use the most “important” job family only for each grade)  Reflect weight of employee population (eg : 10 Finance, 1 HR)  Combine multiple surveys and peer groups © Sandrine Bardot 2013
  10. 10. Want to read more ? http://compensationinsider.com/all-you-need-to-knowfrom-compensation-surveys-to-salary-ranges-andsalary-review/ © Sandrine Bardot 2013
  11. 11. Thank you ! +971 566 172 864 Sandrine@CompensationInsider.com 240+ free articles on C&B ! Subscribe at: http://CompensationInsider.com Sandrine Bardot Consultant, trainer, speaker, blogger Check my profile on LinkedIn for Recommendations, Expertise and free presentations. Twitter : @CompInsider

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