Compensation model

We are looking at reviewing our compensation model now that we are coming out of an 18 month pay freeze. Our model in the past had no rhyme or reason. Most ee's received a 3-5% increase at each review.

We are a small company (130 ee's) and want something very simple and easy to maintain. We want to look at a model that has pay levels where there is no difference of pay for the people in that level except for senority. Once they meet the expections of their position, then they are able to move up to the next pay level.

Does anyone has something similar to this that you would be willing to share? I have never had to build something like this and it is a little scary to work on. What I need to present at our next meeting is model for the management team to review and give feedback on.

Any help would be WONDERFUL!

Thank you!!!!


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  • Sawynia,

    I've had some experience with this and would be happy to help you but need to ask you some questions. For example:

    Is the comp model for hourly or salaried employees? (Are the employees exempt or nonexempt?)
    Will the model be for all employees in the company, a certain level, or a single department?
    Does the model need to cover multiple years? If so, how many? (Five, ten, etc.)
    Will the model be based only on longevity or will there be a merit component?
    Does your company utilize performance scores? If so, what is the range? (0-5, 0-10, etc.)

    ˆf you'd like to send me a private message with the answers to these questions it would be helpful. It would be even more helpful to talk on the phone because, most likely, more questions will come up. If you'd like to discuss, please give me a call at 615-661-0249, ext. 8023.

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