Pay Structuring Virtual Classroom

PAY STRUCTURING VIRTUAL COURSE

AGENDA

DAY 1

9.00-9.15:

• Introductions

9.15-10.00:

• Presentation: Overview of pay structuring
• Practical pay structure examples
• Introduction to pay structuring case study

10.00-10.45:

• Presentation: Grade basis for pay structure

10.45-11.00:

• 15-minute break

11.00-11.45:

• Alternatives to formal job evaluation
• Market pricing approach
• Formal job evaluation approach
• Definition, pros and cons
• Point factor systems
• Classification systems
• Paterson Decision Making classification system

11.45-12.30:

• Assignment A: Grading case study jobs on Paterson broad grades
• Feedback on assignment

12.30-13.00:

• Presentation: Pay base for pay structure
• Grouping of different pay items in the pay package
• Advantages of a flexible package approach

DAY 2

9.00-9.30:

• Presentation: Drawing up a scatter chart on Excel
• Using different trend lines to obtain a pay scale midpoint line

9.30-9.45:

• Assignment B: Drawing a manual pay scale midpoint line for case study data
• Plotting pay midpoint line in the pay scales table

9.45-10.45:

• Presentation: Market positioning for pay structure
• Choosing appropriate market sectors (industry, region, function, organisational size)
• Choosing date of market comparison (lead/lag principles)
• Positioning within market data (mean, median, quartiles, percentiles)
• Choosing appropriate salary surveys (quality and representativeness of data)

10.45-11.00:

• 15-minute break

11.00-11.30:

• Assignment C: Plotting market data in pay structuring case study scatter chart
• Revising pay scale midpoint line to accommodate market data
• Plotting revised pay midpoint line in the pay scales table

11.30-12.30:

• Presentation: Pay structure mechanics: Number of pay structures, pay ranges, pay slope, pay overlap, smoothing the pay line
• Advantages/disadvantages of using narrow grades, broad grades, career bands for pay structure
• Calculation of pay structure formulas
• Guidelines around number of pay structures, pay ranges, slopes and overlap

12.30-13.00:

• Assignment D: Calculating pay slopes and checking the smoothness of the pay lines for the two lines of best fit / pay scale midpoints already drawn up

DAY 3

9.00-9.45:

• Team Assignment E: Drawing up pay scales for case study data taking into account pay range, slope and overlap guidelines
• Plotting data in scatter chart
• Calculating pay slope, range and overlap in pay scales table

09.45-10.45:

• Presentation: Positioning staff in the pay scale
• Adjusting employees below minimum
• Options for employees above maximum
• Market premiums for specific categories/functions
• Sales positions
• Different approaches to positioning staff within the pay scale

10.45-11.00:

• 15-minute break

11.00-12.00:

• Assignment F: Costing of employees below minimum in pay structuring case study
• Rationale/options for employees above maximum
• Introducing appropriate market premiums
• Positioning employees within the pay scale

12.00-13.00:

• Presentation: Reviewing the pay structure
• Timing and frequency of pay review
• External factors: pay movements, inflation, benefit trends, economy, tax changes, socio-political issues
• Internal factors: organisational profitability, cost constraints, employee compa ratios to pay scale and to market, labour turnover, areas of concern, bargaining unit negotiations