In a BLR webinar entitled "Compensation Strategies: How to Build a Market-Competitive Salary Structure that Retains and Attracts the Very Best," Diana D. Neelman, CCP of Compensation Resources, Inc. explained that, when researching and pursuing market pricing in salary structures, the first steps are to:
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- Collect job information and job descriptions.
- Confirm the job descriptions are accurate.
- Use a questionnaire to update job information.
- Have jobs changed due to prior restructuring and/or downsizing?
- Confirm job information is current and accurate (job summaries or "thumbnails" can be used).
- Ensure an understanding of reporting relationships and hierarchy within the organization and examine the organizational charts.
Then identify and select benchmarks using common positions and readily-available market data. Use a cross-section of the workforce and a significant portion of the employee base.
Layoffs and restructurings may have resulted in employees wearing multiple "hats." It can be a challenge to evaluate the market value of outlier and hybrid jobs and positions. The strategy toward doing so should be to:
- Identify major responsibilities.
- Assign a percentage of time devoted to each.
- Match major responsibilities to published survey jobs.
- Weigh data accordingly.
Such outlier and hybrid jobs may need to be slotted in the absence of relevant market data. Look at relationship and "worth" of the positions to others.
Diana D. Neelman is a Principal and Senior Consultant with Compensation Resources, Inc.. (www. compensationresources.com) She manages the research and data analysis relative to the design and implementation of comprehensive compensation programs. Ms. Neelman is responsible for the development of written policy and communication materials, including plan documents, policies and procedures manuals and administrative forms that support the plan designs. She is also responsible for developing and conducting training programs covering various compensation topics. Furthermore, she oversees CRI's Survey Department, which published various compensation and benefits studies each year.
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