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C O M P E N S A T I O N • S T R U C T U R E

Development of Compensation Structure

    In developing a new compensation structure, we review and analyze the existing plans under certain parameters. The review parameters include:

  • Strategic Business Issues
  • Base Pay Line Policy
  • Compensation Philosophy
  • Structural Design
  • Internal Equity

Strategic Business Issues

    Strategic business issues goes beyond the ability to financially sustain any compensation programs. Of course, budgetary concerns as driven by external forces such as voters, citizens, Board Members, and State Legislature are still paramount among everything else still, issues like compensation philosophies that describe the organizational belief of how employees must be paid and internal equity are both strategic in nature that must be addressed when developing pay structures.

Base Pay Line Policy

    With best practices in mind, UMGHR endeavors for a new pay structure design with base pay line policy that follows the market midpoint 100%. This means that the midpoint of the market rates for each job position will be the basis for structuring the pay ranges for each job grade.

Midpoint Progression

    Following the guidelines issued by the “WorldatWork” organization, we prepare the new compensation structure that has the following midpoint progression between grades:

  • 5% to 12% = for clericals, maintenance, or production levels
  • 8% to 15% = for paraprofessionals, and professional managers
  • 15% to 25% = between supervisors and subordinates
  • 20% to 35% = midpoint differentials between grades for Executive Levels