Building your Compensation Structure
Why do you need a compensation structure?
- To ensure fairness and consistency in pay practices
- To manage cost of compensation
- To avoid many of the private negotiations which undermine equitable pay practices
Who needs to do it?
- Organizations that don’t have it (frequently pay is too low or too high for employees in the same job);
- Organizations that have not maintained their structure;
- Where compensation costs are getting out of control;
- Small organizations that should manage compensation effectively from the start.
PSG’S Role in Developing Grades, Midpoints and Ranges:
- Market price benchmark jobs to establish external equity
- Conduct “whole job” internal ranking to slot jobs for internal equity
- Develop grades, midpoints and ranges and broadbands where appropriate
- Determine mix of base salary and variable compensation and phasing, if required
- Bring those below to range minimum
- In collaboration with client, develop organization’s compensation strategy versus the market (pay at, below or above and by how much)
Surveys for Market Pricing
- We conduct custom surveys of competitive set pay practices.
- We have access to published market data, both nationally and internationally.
Global Compensation Policies:
- We market price pay practices for global companies.
- We develop compensation structures tied to country pay practices and in line with corporate philosophy.
Contact Performance-Solutions-Group, Inc.
For more information, please contact us at (203) 653-4692 or
