Once your job evaluation exercise has been completed, the CPBN team can assist your organisation in establishing pay equity with the external market in which you compete for Human Capital resources and then employ best practices in establishing the compensation ranges for each Job Group/Grade that would have been established for your company.
These best practices principles relate to:
- Establishing the width of each pay grade to reflect the reality of an organisational pyramid and the fact that staff will have to stay longer in a role as they make upward progress through the company. The application is best practices to this critical area will minimise the early “red-circling” of staff and both the demotivation impact on employees and the dysfunctional that develop in order to pay “red-circled” staff more money.
- The degree of overlap in the pay ranges for job grade and the mid-point to mid-point progression that is established as a policy.
The establishment of “pay-equity” with the external market is a key strategic decision that will impact your company’s ability to attract and retain staff the level of capability required to execute the organisation’s processes. Your company is competing for these resources in the external market and the establishing the segment of the labour market that is relevant for your organisation is a critical decision so that the percentile positioning of your compensation can be agreed on.
Once there is a consensus of the positioning of compensation relative to the external market, the CPBN team will assist in the development of your paygrade structure and in the development of a policy framework that will support a smooth transition to the new compensation system. An example a best practice pay structure is shown below.
