HR and Compensation Strategies

In a tight marketplace, HR professionals may encounter scenarios where employees leave for more lucrative opportunities at competing companies.

Key points to remember:
- collect internal and external data to support the need for changes to salary scale
- make adjustments to reflect what is happening in the labour market

Key Terms
This week’s HR terminology includes:

Classification: systematic arrangement in groups or categories according to established criteria
Compa-ratio: the ratio of average pay to the midpoint of the pay range (ie. average pay= $2960/month/ midpoint of range= $3000, compa-ration= .98)
Hay Guide-Chart Profile method: method of job evaluation that creates a profile for each position based on its required know-how, degree of problem solving, and accountability
Midpoint: the middle value of the reported salary range
Pay grade: sets of jobs having similar worth or content, grouped together to establish rates of pay.
Pay ranges: A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.