hrmonize.com

  Ed Krow
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Base Pay System Design

The most common objective of any compensation plan is to be internally equitable and externally competitive. I believe it is essential to not only design a base pay system that meets these objectives, but also supports the business strategy and creates a link between work and rewards. Base pay is simply defined as compensation that we provide to employees in exchange for performing specific job responsibilities.

I can help you design a base pay structure that will attract, motivate, and retain quality employees through these action steps:

  1. Job Analysis – this first step provides key information about the nature and level of work performed.
  2. Job Documentation – next, we need to gather information about job content and the knowledge, skills, and abilities required to successfully complete job duties.
  3. Job Evaluation – during this phase we'll collect the data needed to create a job worth hierarchy. Either a market-based approach or job content approach can be used.
  4. Job Worth Hierarchy – this last step indicates the perceived value of jobs in relationship to each other within an organization.

Once we complete the above steps, the salary ranges can be established and any other factors such as shift or geography differentials or hazard pay can be accounted for. Other considerations I can help with include designing the procedures for administering promotion/demotion pay changes, COLA increases, market adjustments, and communicating pay actions effectively.

Base pay compensation systems continuously interact with their external and organizational environments and are affected by changes in these environments. As a result, they must be monitored regularly. If you need help implementing or redesigning your system, please contact me. Be proactive in auditing your system's effectiveness! I can help you prevent the serious consequences that arise from compensation systems that are not aligned with organizational objectives.


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February 15, 2012 - "Getting Unbiased Information" Centre County Chamber, State College, PA

February 28, 2012 - "Preparing for an OSHA Inspection: Steps to Take Now!" Central PA HR Professionals, Harrisburg, PA

March 1, 2012 - "Managing Generational Conflict" National Association of Mutual Insurance Carriers Conference, Chicago, IL

March 16, 2012 - "Strategic Succession Planning: Building Your Bench Strength" Philadelphia SHRM, Philadelphia, PA

March 21, 2012 - "Listening & Organizing" Centre County Chamber, State College, PA

April 18, 2012 - "Giving Clear Information" Centre County Chamber, State College, PA

April 18, 2012
- "Variable Pay: Incentives & Consequences" Montgomery County SHRM, Bethesda, MD

April 25, 2012 - "Auditing HR; Seeing Your Department Through the Magnifying Glass" Hanover Area SHRM, Hanover, PA

April 26, 2011 - "Variable Pay: Incentives & Consequences"  Baltimore SHRM Annual Conference, Hunt Valley, MD

April 27, 2012 - "Resolving Workplace Conflict" York County Chamber, York, PA

Address: P.O. Box 161, Conestoga, PA 17516
Phone: (717)314-3680 :: Email: ed@edkrow.com