Yesterday, we got some insights on the importance of a well-structured approach to compensation at your organization, courtesy of J. Timothy O’Rourke. Today, we look at his take on whether building an effective salary structure is more of an art or a science.
O’Rourke is president and CEO of Matthews, Young – Management Consulting.
As we mentioned yesterday, pay grades are important for a variety of reasons. A salary structure with well-established pay grades and ranges allows for base salary planning. It also provides vertical and horizontal perspective, which allows you to ensure your salary structure is both aligned with company goals and equitable across groups.
Finally—and this is an important yet often overlooked consideration—formal pay grades and ranges visibly reinforce your commitment to legal considerations relating to equal pay, parity, and fairness. This helps prove your compliance with the Americans with Disabilities Act (ADA), Fair Labor Standards Act (FLSA), Age Discrimination in Employment Act (ADEA), and other state and federal antibias laws.
Want to make sure your pay programs are effective? Start on Wednesday, September 16, 2015, with a new interactive webinar, Salary Structure Design for HR: Keys to the Most Successful Pay Programs. Learn More.
The importance of a formal salary structure is indisputable—but the best way to craft one is a different question altogether. Is building an effective salary structure an art or a science?
“Great question!” says O’Rourke. “It is both an art and a science. The science is in making sure that the structure is linked to and anchored in the evolving marketplace. Research must be done to produce the data necessary to accomplish this objective.
“The art comes into play when designing the structure to support and interface with a total rewards philosophy and strategy. Every dollar paid above the ‘going rate in the marketplace’ for a position is a premium rate.
“Ensuring that premium rates are available and determining how they can be earned is part of the support that a good salary administration program provides. These things should be guided by strategy, and that is an art,” O’Rourke concludes.
Your employees know how to access salary data and what they find might cause problems. Want to learn how to modify your pay program to avoid this and other problems? Fortunately there’s timely help in the form of BLR’s new webinar—Salary Structure Design for HR: Keys to the Most Successful Pay Programs. In just 90 minutes, on Wednesday, September 16, you’ll learn everything you need to know about creating an effective and legal pay program.
Register today for this interactive webinar.
Get the most bang for your buck. Join us Wednesday, September 16, 2015, for a new interactive webinar, Salary Structure Design for HR: Keys to the Most Successful Pay Programs. Earn 1.5 hours in HRCI Recertification Credit and 1.5 hours in SHRM Professional Development Credit. Register Now
By participating in this interactive webinar, you’ll learn:
- The legal underpinnings of pay
- How to incorporate job analysis and documentation into compensation plan design
- How to evaluate market pay using salary surveys
- Why market-pricing jobs and completing a competitive analysis is important
- How to assure internal and external equity
- Pay structure design strategies that work—and how pay structures can help your bottom line
- And much more!
Wednesday, September 16, 2015
1:30 p.m. to 3:00 p.m. (Eastern)
12:30 p.m. to 2:00 p.m. (Central)
11:30 a.m. to 1:00 p.m. (Mountain)
10:30 a.m. to 12:00 p.m. (Pacific)
Approved for Recertification Credit and Professional Development Credit
This program has been approved for 1.5 credit hours toward recertification through the Human Resource Certification Institute (HRCI) and 1.5 credit hours towards SHRM-CPSM or SHRM-SCPSM.
Join us on Wednesday, September 16, 2015—you’ll get the in-depth Salary Structure Design for HR: Keys to the Most Successful Pay Programs webinar AND you’ll get all of your particular questions answered by our experts.
Train Your Entire Staff
As with all BLR®/HR Hero® webinars:
- Train all the staff you can fit around a conference phone.
- Get your (and their) specific phoned-in or e-mailed questions answered in Q&A sessions that follow the presentation.