Base Pay, Job Evaluation and Alternative Compensation Systems
Taking into consideration marketplace conditions, regulatory, organizational, cultural, and other internal and external requirements, we work with managers and employees to develop the appropriate systems for your organization.
We lead clients through an analytic process that:
- Defines a total compensation program that supports each client’s strategic objectives;
- Creates pay equity internally;
- Maintains competitiveness externally;
- Makes the compensation program understandable;
- Supports pay for performance;
- Controls costs;
- Keeps the program flexible and accountable so we can adjust it to changing circumstances.
How We Produce Results
It all starts with creating a sound base compensation system. The typical steps in developing a base-pay plan project are:
Define strategic objectives and the project scope:
- What are your strategic objectives?
- Are you growing, maintaining, or right-sizing?
- What jobs are covered?
- Are we working on only base pay or base + bonus?
- Are benefit levels to be considered, too, in setting base pay levels?
- Document all jobs using our Job Description Questionnaire. Each employee completes a questionnaire that is reviewed by their supervisor/manager for accuracy and completeness.
- Evaluate job content using our Point Factor Job Evaluation System. We measure jobs on five major factors: Decision-making, Problem-solving, Communication, Working Conditions, and required Education/Experience. Each factor has sub-factors, and the system yields a total point score that allows us to compare and contrast any number of dissimilar jobs to create a job structure that is fair internally.
- Measure the appropriate labor markets for a comprehensive set of benchmark positions, assess the client’s competitive position, and determine the client’s competitive objectives.
- Design one or more pay structures that combine the internal measures of job responsibility with market factors to create a balanced pay plan approach.
- Determine implementation costs and develop policies to support the plan.