Your checklist for establishing salary ranges - TheJobNetwork

Your checklist for establishing salary ranges - TheJobNetworkOutwardly, your company probably has a standard line when it comes to describing employee salariessomething along the lines of salary commensurate with performance and experience, perhaps. Internally, its essential to have a close eye on what youre paying particular employees, whether this aligns with industry standards, and what a particular position is worth to your company. Establishing pay ranges or set salary boundaries is essential to getting a handle on this information and managing salary moving forward. Lets look at how you can approach the task for your company.Determine the value of each position within your organization.It would be nice to think that you cant put a dollar number on an employees worth, butthe accountants beg to differ. This isnt personal to whomever holds the job. Each position within your company has, realistically, a minimum and maximum value. Figuring out that value depends first on determinin g what the market value is for a given position. Your jobs may not match other companies jobs 11, but matching approximate job duties and levels of seniority can give you a pretty good idea of what others are paying for similar work. Sites like PayScale offer glimpses into position salaries, but the U.S. Department of Labor Statistics can really be your gold standard of salary data.Re-evaluate current employees.This is likely the fruchtwein painful part of the process because it could uncover some uncomfortable realities. Are your current employees making salaries in line with their market value? If theyre making less, this is a relatively easy fixyou can increase base salary until its aligned. If theyre making more, its tougher. Cutting someones pay is going to negatively affect morale and employee engagement. What you can do is determine that a particular employee wont be eligible for base pay increases, but rather bonuses or other compensation.Review and rank all the jobs in your organization.By figuring out the most essential jobs in your organization and assigning value based on seniority, job complexity, education required, training necessary, and other aspects, you can start establishing a hierarchy of salary ranges.Review your job descriptions.Once you start considering the relative value of each position, its important to make sure that your recruitment materials are realistic. Are your job descriptions reflective of the actual job? If youre going to assign a specific value range to a position based on the job tasks, experience and skills necessary, etc., then youll be able to manage the salary process better, and earlier in the process.