While having a salary structure is not required, having one certainly helps to control costs and plan for the future. From the perspective of a compensation professional, here are a few pros and cons to implementing a salary structure and job grades in your organization. Let’s start with the bad news first.
Challenge: A high-tech company had grown to a point where it was no longer feasible to have one or two individuals making pay decisions for the whole organization. Some employees were bringing salary information they had researched online and were starting to ask questions about how pay decisions occurred. It was increasingly difficult to
Challenge: A large heavily unionized organization wanted to move to a pay-for-performance model for their non-union staff. There was concern that moving to a pay-for-performance model could result in additional unionization and resistance to change. Solution Deployed: We conducted a thorough assessment of the organization’s compensation practices and perceptions. Through a series of interviews,
With significant advances in technology and the availability of reliable internet service, professionals in every industry have the flexibility to work virtually anywhere. Distributed workforces with teams of employees and managers in different cities are increasingly common. The result of this increasingly global workforce is twofold: employers enjoy increased flexibility to search more broadly
Challenge: A professional services client was managing their pay differently in different parts of the organization. Concerns about pay discrimination and internal equity drove the need for implementation of an organization-wide and consistently administered compensation plan. Managers were fearful of change and needed training, mentoring and communications support to help navigate the new system.
As small companies grow and add employees, the human resource practices that may have worked in the past may need more defined processes to attain company goals. A recent client had been hiring elite software developers and grouping the new employees into a single engineering job title regardless of skills or experience. A small
Challenge: Our client was concerned that employees were not being paid according to Human Resource (HR) policies and state and federal labor laws and regulations. Solution Deployed: We conducted a full audit of the client’s payroll practices, examining all payroll calculations, application of HR and payroll policies to actual payroll payments made, and segregation
Challenge: A client had no framework in place to determine if pay practices were competitive with the market, and managers were not savvy about administering and communicating compensation. Solution Deployed: We researched available salary survey sources and recommended the best surveys for our client. We worked with managers to update job descriptions and benchmarked
Challenge: Our client had two owners. Owner One sold their ownership percentage to Owner Two. As a result, Owner Two also gained full ownership of a division of our client’s company with approximately 30 employees. Owner Two planned to absorb the company fully into their operations. Our client’s Human Resources (HR) department lacked the
There is a process for setting pay for the newly hired. The merit pay matrix is in place, payment and performance are aligned, and there is an understanding of how and what employees are paid throughout the organization, right? But when 99% of an organization’s employees still receive pay increases every year despite an