Michelle Buckley

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What Are The Main Pay Structures For Your Organisation?

There are a number of different pay structures (also know as salary structures) available for organisations to consider when implementing a new pay framework. Which one you decide to pick will depend on many factors such as size of organisation or industry.

We’ve put together a handy explanation of the main pay structures.

Main Pay Structures For Your Organisation

Broad Banded Structures – enables employees to be placed in the appropriate position/zone within the band based on the individual skill set/experience they bring to the organisation and then to progress them through the band based on the achievement of performance objectives, competencies etc.

Incremental Structures – based on unique job evaluation scores for each grade with progression through the pay range being based on annual time served increments (subject to acceptable performance levels).

Job Families – the variety of role types in an organisation need to be addressed both in terms of pay levels and progression. Market forces mean that roles of a similar size can have very different pay levels and the mechanisms in place for future pay movement/reward need to suit each role type.

Spot Salaries  – each role within the organisation has its own pay level and in some instances an associated pay range. Typically used for senior management teams.

Highly Granular Systems – make clear distinctions between a large number of different grade levels, each with their own generic descriptors and associated pay ranges. These systems help to drive promotion (which has an associated pay increase but this is not a pay award) and the acquisition of the associated skills, qualifications and experience.

For more about how Reward Connected can help your organisation with pay structures, contact us now.