Once your job framework is in place and you have a clear understanding of market pay levels, you can begin to design your compensation structure. Alternatively, it may be time to reassess and recalibrate your existing compensation structure.
To design or recalibrate your compensation structure, you need to answer a number of key questions. These may include:
- What should be the balance between fixed and variable pay?
- What options are available for variable compensation?
- How will employees progress through their salary scale?
- Will this be done through periodic increases, and if so, how large should these be?
- What factors influence these decisions?
- How should the minimum and maximum of salary scales be positioned relative to the market?
- What is the appropriate spread between minimum and maximum?
- How should salary scales be adjusted annually?
- We are happy to help you answer these questions.