1.
Agenda Elements of Compensation
Compensation Philosophies
Position Grading
Location and Compensation
Communicating Compensation

2.
How do I create a
compensation plan that is
fair, appropriate,
and consistent?

3.
Paul’s Story

4.
Many Overpaid Workers are Still Dissatisfied with Earnings

5.
Dissatisfied Satisfied
Dissatisfied Satisfied

6.
Elements of Compensation
Base Pay
Salary, Hourly
● Regulations
○ FLSA
○ State
● Market
● Business Impact
Variable Pay
OT, Bonus, Commission
● Regulations
○ FLSA
○ State
● Market
● Business Success
● Role Specific
Benefits
Cost, Value
● Regulations
○ FLSA
○ State
● Market
● Culture

7.
Compliance

8.
External
● Regulations
● Competitive
● Lag - Match - Lead
● Total Compensation Mix

9.
Internal
● Fairness
● Consistency
● Appropriateness
● Discipline

10.
Compensation
Philosophy

11.
Market
Influence

12.
Work/Life
Balance

13.
Total Rewards
Package

14.
Fairness, Consistency,
Appropriateness, Discipline

15.
Position Grading

16.
Consistency

17.
New Positions and Backfills
● Establish base pay
● FLSA review
● Position grading
● Determine appropriate salary band
● Start hiring process

18.
Skills, Location,
and Compensation

19.
Training Managers
on Compensation

20.
Manager’s Responsibilities
● Answer questions from direct reports
● Seek guidance from HR
● Maintain confidentiality
● Assist with position grading
● Recommend salary adjustments

21.
Communicating
Compensation
with Employees

22.
A study of 71,000 employees found
that clear and honest communication
about pay was a top predictor of
employee sentiment.

23.
Transparency Spectrum

24.
Closing Remarks

25.
Questions?

26.
Thank you!
Follow BambooHR on social media:
bamboohr.com/blog