A pay structure outlines the salary ranges for specific job levels or bands within an organisation

How it works

Having a pay structure in place allows us to find the right balance between internal equity and external competitiveness.

To begin, our reward team will develop pay structure options based on an organisation’s career framework or job architecture. Some organisations come to us with this already in place, but we also offer job architecture design whereby we create this for them.

The options we provide will also consider the organisation’s market positioning.

An example of how pay ranges may sit together and overlap

Impact analysis

For each of the options, we will carry out impact analysis.

We look at employees that are above or below the pay range, which gives us the potential cost of implementing the pay structure. And then based on what is affordable, we agree on the right pay structure and develop that option fully for the organisation.

Future-proofing

Lastly, we work with the organisation to agree on a pay policy that guides leaders in managing any employees that sit outside of that pay structure in the future. It will help the organisation answer questions such as:

• How will you manage employees above/below the pay range?
• How will you manage promotions?
• How often will you review your pay ranges?
• How will employees progress through the pay range?