My team and I are working with a large global employer right now and we need to market price more than 1,000 jobs very quickly.
The employer’s compensation team members are smart, good at process documentation, and great at aligning their priorities to the needs of the business. (Can you tell I love working with them?!)
Because many of us will be using several global salary survey sources, a Market Pricing Guidelines document has been written. The following topics are covered:
· Salary survey sources – global and country specific
· Pay markets (or data cuts) to use – in priority order (industry, work location, and company size)
· Geographic Differentials – when to use them and when not to; also, how to calculate them depending on the salary survey sources being used
· When to use individual contributor vs. supervisory matches from the surveys
· Premium % and discount %use – when to use 5% plus/minus, 10% plus/minus, etc. (capped at 20% which should be rare)
· How to document rationale for matches and adjustments and weighting in the software tool (e.g., put your initials and date along with the rationale in the comments field)
· What needs to be reviewed (exceptions) by the Compensation Director and what does not
· Target percentile for base pay, short-term incentives, and long-term incentives – by country
· Survey career level vs. Company career level – a chart to ensure consistency when matching jobs from each salary survey source
· How to match hybrid or blended jobs
· Old pay grade vs. new pay grade – a chart that provides an approximate translation of old to new
· Pay related terms and their definitions – so we are building a common language and understanding
· How executive jobs are handled vs. non-executive jobs
· A list of job functions and subfamilies
You get the idea. It is a terrific (9 page) document that will help us do this work as a team.
It will also help the reviewers of this work so they can create and run reports to check for consistency between jobs and countries.
Efficiency + Effectiveness + Consistency = Trust
These are essential elements for any employer and HR/Compensation team to aspire to.
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