How to Build Pay Grades and Salary Ranges

HR leaders who are aiming to develop and maintain pay ranges can face a bit of a difficult dilemma; if the ranges are too narrow, the organization won’t be able to reward long-tenured staff, nor high performers within the role. Too broad, and the pay ranges provide very little support for the compensation philosophy. And worst of all - having no ranges at all can lead to difficulty attracting top talent, or overpaying your current talent.

So, how can you set your pay ranges just right?

In this presentation, Mykkah Herner, a member of PayScale's compensation consulting team, will show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market based pay ranges.

You’ll learn how to:

  • Identify appropriate sources of market data.
  • Select an appropriate “market set” for utilizing market data.
  • Choose benchmark positions and slot non-benchmark positions into your pay structure.
  • Create a strategy for dealing with “hot” jobs that fall outside of internal ranges.

You can download the presentation slides here.

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