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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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WorldatWork (Total Rewards Association)

 

 

SALARY STRUCTURE POLICIES AND PRACTICES [29 October 2012]

A report by WorldatWork and Deloitte Consulting LLP

October 2012

http://www.worldatwork.org/waw/adimLink?id=65885

[full-text, 40 pages]

 

This report summarizes the results of a July/August 2012 survey of WorldatWork members and nonmembers to gather information about current trends in salary structure policies and practices. The focus of this research is to better understand the types of salary structures as well as the designs and common practices in administration used by employers today.

 

Key findings and trends:

• Market-based salary structures are the most predominant type of salary structure used by survey participants (64%). While traditional and broadband structures have been more popular in the past1

• Variation in salary structure practices is infrequent, but not uncommon for organizations: , the use of traditional and broadband structures in organizations today is low in comparison (23% and 12%, respectively).

o Job level and geographic location are the most popular triggers for variation in structure type.

o Competitive positioning most frequently varies by job function and job level.

o Frequency of adjustment most commonly varies by job function and job level.

• Traditional structure range spreads appear to have increased over time and midpoint progressions have increased.

 

Table of Figures

 

Introduction 2

 

Types of Salary Structures 4

Figure 1: Type of Salary Structure(s) Used for U.S.-based Employees 4

Table 1: Type of Structure by Industry 5

Table 2: Type of Structure by Organization Size 5

Table 3: Range Spread and Midpoint Progression by Structure 6

Table 4: Average Range Spread by Industry by Structure Type 7

Table 5: Average Range Spread by Company Size 8

Figure 10a: Type of Variances in Global Structures 10

 

Competitive Positioning 11

Figure 12: Consistency of Midpoints Tied to a Single Competitive Percentile 11

Figure 13: Distribution of Midpoints Tied to a Single Competitive Percentile 12

 

Frequency of Adjustment 13

Figure 18: Consistency in Frequency of Adjusting Salary Ranges 13

Figure 18a: Frequency of Adjusting Salary Ranges 13

 

Salary Structure Tools 15

Figure 24: System(s) of Record for Salary Range Data 16

Figure 25: Type(s) of Systems/Tools Used to Communicate Salary Ranges to Internal Customers 17

 

Conclusion 18

Appendix 1: Tables and Figures 19

Appendix 2: Type of Salary Structure Definitions 38

 

 

 

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