Compensation

Compensation can be used as a management tool to:

• Effectively recruit and retain qualified employees
• Increase or maintain morale/satisfaction
• Remain competitive with internal and external markets

Pay Grades Contain:

• Minimum range
• Midpoint range
• Maximum range

Range for Minimum to Maximum:

• Can be from 20% to 100%; 30% to 35% is most common

Overlap

• Normal to have overlap between pay grades

• New to job role, recent hire, newly promoted or trainee
• Little/no direct experience
• May not meet all job performance criteria
• On the learning curve for the job
• Knowledge/skills for job still developing
• Exhibits some of the desired competencies for the job

• Meets standard job criteria
• Possesses required knowledge and skills
• Consistently exhibits desired competencies to perform the job successfully
• Performs all/most accountabilities of the job effectively and independently
• Mature and proficient professional

• Expert in all job criteria Has broad and deep knowledge if own area as well as the larger organization
• Depth and breadth of experience, specialized skills, perspectives add significant value to the organizations.
• Serves as expert resource and/or role model/mentor
• You must have your HR Rep’s approval to hire an employee into zone 3