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

2. 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Out-of-date job descriptions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

3. 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

4. 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

5. 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

6. 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

7. Combination Method

8. 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

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

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