Benefits Unlimited, LLC Evaluating Your Organization’s Pay Structure: When and How to Revise or Replace It Benefits Unlimited, LLC

Is a New/updated Pay Plan Needed? Is internal equity out of whack? Lack of compensation philosophy Salary compression Length of time since last update Out-of-date job descriptions Unusually high/low compa-ratios Gaming the system Inappropriate pay practices Benefits Unlimited, LLC

Is a new/updated pay plan needed? Are there external equity issues? Market influences Government regs “Hot jobs” Using CPI vs. ECI “across the board” increases Benefits Unlimited, LLC

The need exists…now what????? Which model to use? Revise the current comp model Develop new model Which method to use? Job evaluation method Market-based method Benefits Unlimited, LLC

Job evaluation based vs. market-based Job evaluation method Requires up-to-date job descriptions Rates ska’s of each position Total value=position ranking Benchmarked jobs market priced Regression analysis determines grades/ranges Benefits Unlimited, LLC

Job evaluation based vs. market-based Market-based method Collect survey data for as many positions possible Use multiple surveys Determine pay grades/ranges Place job in grade with mid-point closest to its market value Benefits Unlimited, LLC

Combination Method

Populate the model Run compa-ratios for incumbents Design alternative structures using adjustments Calculate cost implications for alternative plan(s) Gain approval and fine-tune Benefits Unlimited, LLC

Communicate the plan “Secret vs. transparent” Show employees value of “total rewards” program annually Benefits Unlimited, LLC

Beverly S Manlove Principal Benefits Unlimited, LLC (757) 464-5877 beverlymanlove@verizon.net