How do you establish a salary range?
Table of Contents
How do you establish a salary range?
How to Establish Salary Ranges
- Step 1: Determine the Organization’s Compensation Philosophy.
- Step 2: Conduct a Job Analysis.
- Step 3: Group into Job Families.
- Step 4: Rank Positions Using a Job Evaluation Method.
- Step 5: Conduct Market Research.
- Step 6: Create Job Grades.
- Step 7: Create a Salary Range Based on Research.
How do you Analyse compensation data?
Follow these steps to conduct a comprehensive market compensation analysis:
- Access salary and wage surveys.
- Assign responsibility.
- Define job categories.
- Collect data.
- Perform analysis.
- Compare to market average.
- Make pay structure decisions.
- Align with results.
Where can I find compensation data?
One of the largest and most comprehensive sources of free salary information is the Bureau of Labor Statistics (BLS). The BLS has salary survey data for many different positions in various industries as well as for specific geographic locations.
How companies get to determine a salary of an employee?
Your salary is directly proportional to how much skill you bring to the job. As a rule, positions that require skilled employees or people with specific qualifications will be paid more, while the more general positions, like administration, will attract lesser pay.
Why companies establish salary ranges?
Transparency: For employees, providing the salary range of their positions helps them know how much room for growth there is in their current role. Providing the salary ranges for advertised positions can also help you attract quality job candidates looking for better-paying jobs.
What do compensation analysts do?
Compensation analysts research, implement, and oversee an organization’s pay structure. They train to become experts on industry salaries, benefits, and remuneration policies and advise senior members of an organization on what to pay team members at various points of their employment.
Whats a salary range?
A salary range is the span between the minimum and maximum base salary an organization will pay for a specific job or group of jobs. A salary range structure (or salary structure) is a hierarchal group of jobs and salary ranges within an organization.
What sources do most employers use to benchmark compensation?
Data
- Peer Data. Payscale’s employer- reported salary data network.
- Crowdsourced. The world’s largest employee- submitted pay database.
- Survey Publishers. Annual survey salary data from HR industry publishers.
- Data API. The crowdsourced compensation data API for developers.
- Payscale Compensation Surveys.
- Payfactors Market Data.
What is a salary range?
A salary range is the payment amount between a set of low to high numbers that an employee wants to receive once they’re hired by a company. For example, if an employee mentions that their salary range is $40,000 to $50,000, this means they’d like to receive a salary within those numbers.
Why is there a salary range?
All employers know that finding the right person for the job isn’t easy; if they offer you the position and they really want you for the job, then they will adjust the package accordingly. If an employer indicates a salary range, they will pay the top figure if they find the right person for the job.