Compenstion薪酬福利管理.pptVIP

* * * * * * This is very easy in a small company, but not in a large company. Importance could be the only one dimension of the jobs instead of compensation. Employees at SMLR—Faculty and Staff, Faculty—Tenure track and Non-tenure track * Assign different weight for different factors. * * * * NA: not available * * * * * * * * * * Pay Ranges Refer to the vertical dimension of the pay structure Each pay grade is associated with a pay range consisting of a midpoint and a specific minimum and maximum Midpoints: Correspond to competitive pay policy where the pay policy line crosses each pay grade Are the control points of the range Range spread – judgment about how the ranges support career paths, promotions, etc. Typically range between 10 and 120%. Minimum of pay range = Midpoint / [1 + (1/2 range spread)] Maximum = Minimum + (range of spread * minimum) Setting the pay grade structure 120 160 200 240 280 320 360 Job Evaluation points WITHIN Firm 7 6 5 4 3 2 1 Survey Monthly Pay ($000) Pay Grade Pay Range Maximum Minimum Mid Point Differential Ranges External Competitiveness (cont’d) (5) Broadbanding Consolidates a large number of pay grades into a few “broad” bands, usually 3 to 10 Maximum pay for a particular band can be as high as 100-400% above the band’s minimum pay Bands are usually wide enough that changes in the market don’t require adjustments as often Pay for Individual Performance Initial pay based on the person’s previous experience, education and negotiating skills Increases can be tied to meeting goals, providing higher levels of service or results of performance appraisal Red circled job —person being paid above the maximum wage for grade Green circled job — person being paid below minimum of grade Manager can adjust salary, reclassify or reevaluate the job External Competitiveness Ensures jobs are valued appropriately relative to similar jobs in the external labor market Affects how attractive the firm is