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What is a Base Pay Structure and Why You Need One

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Base pay structures define pay levels and pay opportunities that are internally fair, externally competitive and cost-effective – all in support of an organization’s compensation strategy. Pay structures typically group jobs of equal internal value or worth into grades. Pay ranges reflecting market value are then assigned to these job grades.

This session lays a foundation for the effective design of traditional pay structures and offers several approaches to assigning jobs to grades and developing competitive salary ranges for those grades. The concept of broad banding is introduced and contrasted with a traditional pay structure. When designing any pay structure, compensation professionals need to consider how an organization’s compensation strategy will affect design elements and the competitiveness of midpoints or control points. Once designed, effective implementation, communication and maintenance of the pay structure are critical to its ongoing success.

In this session, you’ll learn how to accomplish the following:

  • Identify the goals of a pay structure for an organization
  • Describe methods involved in building a base pay structure
  • Identify design considerations that must be addressed when developing a pay structure
  • Identify components of pay structure design, including developing a base policy line, determining the number of pay structures and determining the number of pay grades or bands
  • Explain broad banding and identify reasons organizations use broad banding.

Constance L. Haney
Vice President, Total Rewards
CoorsTek, Inc.

Connie has been an active innovator in Total Rewards her whole career. Her experience is diverse, working in many different industries in public, private and non-profit organizationsis. Currently, serving as Vice President, Total Rewards for CoorsTek, Inc. she is part of a Human Resources team that is at the forefront of transforming a 100-year-old ceramics manufacturing company into a state-of-the-art advanced ceramics materials solutions provider. Her experience covers working with board and business leaders to align their rewards strategies and practices with corporate goals and business strategies, she has designed and implemented executive and broad-based compensation and benefits programs for high performing global organizations.

Over her many years of experience, Connie has held Rewards leadership positions at Lam Research Corporation, Mentor Graphics Corporation, Cargill, Inc., GMAC-ResCap, Ceridian Corporation and Foodmaker, Inc. As a consultant with Willis Towers Watson she serviced clients in a variety of industries including high tech, agriculture, financial services, biotechnology research, healthcare, and energy in all phases of business life cycles from venture capital start-ups to established mature corporate organizations.

Connie holds a MBA from George Fox University, Portland, OR. She received her undergraduate degree in economics and management from Trinity International University, Deerfield, IL. She holds a number of certifications including a CECP, SHRM-SP, CCP, GRP and CBP. Connie is Chairman Emeritus of the Compensation Advisory Board of WorldatWork and is a current WorldatWork faculty member and regular publications reviewer. She is a current member of the Society of Human Resources Management and a past board member of the Rocky Mountain Total Rewards Association.

Please note: Prices are subject to change without notice. All sales are nonrefundable. Playback and the on-demand recorded session will be available 30 days following the live event, and you can access the session for 90 days. Your 90-day access begins the day of order.

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