It is important that every company have a well thought-out and easily understood employee compensation and administration plan.
There are several basic attributes of an effective compensation plan:
- It is fair, in that a consistent method has been devised to determine the "value" of one job versus another
- Competitive with other employers in your geographical area(s)
- Affordable, as compensation is such a large portion of your on-going expense
- Understandable and not overly complex
- Easily administered by HR and other company salary administrators
- Fosters and rewards achievement
- Provides input to a salary planning and budgeting process
Our "Straight Ranking System" methodology provides for job evaluation - "factor comparisons" - including "weighting" and specific "degrees" of weighting for:
- Level of supervision required
- Experience & knowledge required
- Level of education required
- Level of accountability/responsibility
- Mental effort required
- Physical requirements of the job
Resulting job "levels" and "steps" provide for a salary structure and a salary progression schedule, to be developed, that can be administered equitably for each unique position in your company.
Contact us for more information and how to get started.
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