Structure can be a good thing. Pay ranges give you guidelines for how to pay your people, and help you to identify pay inconsistencies and inequities across your employees. Join this webinar to learn more. -An overview of how to use your Insight Platform to build out a range structure -Best Practices of what to think about when building out a structure in the tool for the first time -Keys tips to implement pay ranges in your organization

1. Ranges and Strategy
Training
Session will start at 10:05 am

2. www.payscale.com
Introduction
Diane Schuman
Customer Training Specialist
Lauren Heino
Compensation Professional

3. www.payscale.com
Rita Patterson, CCP
Manager, Customer Education
https://www.linkedin.com/in/rita-patterson-ccp-5b039812
Mykkah Herner, MA, CCP
Modern Comp Evangelist
https://www.linkedin.com/in/mykkahherner
1
2
3
Agenda
• What to think
• Identify your Labor Market
• How competitive do you want to be?
• Creating Ranges in Insight
• Setting Ranges
• Employees to Ranges Report
• Key tips to implementing
• How to handle outliers

4. www.payscale.com
What is a Labor Market?
To define a Labor Market
means to choose a “cut” of
the compensation data based
on where you compete for
talent – organization type,
company size, geography,
and/or industry.
Location
Market
Labor Market
Industry
Company
Size
Org Type

5. www.payscale.com
How competitively do you want to pay?
What’s your target market percentile?
50TH
PERCENTILE
LAG THE MARKET
MEET THE
MARKET LEAD THE MARKET
90TH
PERCENTILE
10TH
PERCENTILE

6. www.payscale.com
Definition:
Job-Based Ranges
Ranges are built around the market value for the job, at the targeted percentile

7. www.payscale.com
Using Pay Ranges
Range MidpointMinimum Maximum
$50,300 $74,400$62,400
Range Midpoint:Range Minimum: Range Maximum:
• Employees new to the role
• Employees with lower
performance or proficiency
• Employees proficient in their role
• Employees with good performance
• Aligns with the market
• Employees with high performance
• Employees with demonstrated
high proficiency and experience

8. www.payscale.com
Handling Green Outliers
• Increase all to bottom of range
• Focus increases on top performers
• Focus increases on critical segments
• Bring employees into the range over time
• Special circumstances allow for payment below range

9. www.payscale.com
Handling Red Outliers
• Freeze base pay
• Offer one-time performance-based payout (if warranted)
• Allocate increases by position in range
• Pay determined by factor other than market

10. www.payscale.com
Develop guidelines or policies about:
• Where new employees enter ranges
• How current employees move within ranges
• What happens when an employee is promoted?
• How much discretion do managers have?
Get specific, where it makes sense!
Guidelines or Policies

11. www.payscale.com
• New positions
• Evaluate ranges to market
• Annually based on market research
• Shift ranges as necessary (2-3 years)
• Evaluate Ranges
• Revised job duties
• Hot jobs
Maintaining Compensation Structure

12. Questions?