Base Wage/Salary Structure

Tep Chetra

Base wage/salary structure.

• There are various segments of compensation process fit together to establish the base wage or salary structure for an organization. • Each step of the process is influenced by the compensation policies.• An organization compensation system should produce a base

wage/salary structure that is both internally and externally equitable

New Approach to the base wage/salary structure

Broadbanding

Skills-based pay

Competency-based pay

Market-based pay

Total rewards

Broadbanding

• Broadbanding• Is a base pay technique that reduce many different salary categories to

several broad bands.• or is Collapsing job clusters or tiers of positions into a few wide bands to

manage career growth and deliver pay• bands usually have minimum and maximum dollar amounts that overlap and

an average width of 130% of the minimum.

Broadbanding

• Advantages• Managers have more autonomy in setting pay rates• Easier to move employees around• Overcome reluctant of lateral moves or downgrading in flat organizations• Helps improve communication teamwork