Pay Structuring
Course Information

Two-day class instructed by leading compensation expert – Dianne Auld

Date: 23rd & 24th April 2018.
Location: London.
Duration: Two days, 9am to 4.30pm.
Format: Classroom course, maximum of 20 attendees.
Fees: £1,095 + VAT per delegate (includes postage and packaging of course book sent to you in advance of the class).

Many courses teach reward theory, but few provide practical, useable instructions on implementation. This course provides both. It outlines the theory and principles around pay structuring combined with a practical, step-by-step template on how to implement pay structures in your organisation. Every module of the course is accompanied by a detailed, realistic case study, where the principles just taught are put into practice.

By the end of the course delegates will have the skills and know-how to be able to implement, adjust or review their own organisation’s pay structures, and align those pay structures to your business model.

The course covers every aspect of pay structure design, including:

  • job evaluation
  • creating base pay scatter charts and trend lines
  • surveying the market
  • determining and calculating pay ranges
  • pay slopes and pay overlap
  • positioning staff in the pay scales
  • dealing with pay anomalies and exceptions
  • pay increase options
  • the annual review of the pay structure.

Each aspect is viewed in terms of alignment to the organisation’s business strategy and culture.

Level of knowledge required

For maximum benefit from the course, delegates should have an HR background and an understanding of the internal organisation structures and business need of their own organisation. Delegates from a financial or payroll background would also benefit in terms of enhancing their understanding of remuneration principles and pay structures. Some calculation work is included in the course, so delegates should have basic numeracy skills.

Who should attend?

Any person in reward/HR requiring an improved understanding of pay structures, and how to implement, adjust or review them to best suit the organisation’s business needs, including:

  • Reward Managers
  • Reward specialists
  • HR Managers
  • HR specialists

Course programme

DAY 1

Registration 8.30am to 9.00am
  • Introductions
  • Presentation: Overview of pay structuring
  • Introduction to pay structuring case study
Tea/Coffee
  • Presentation: Grade basis for pay structure
  • Alternatives to formal job evaluation
  • Advantages/disadvantages of using a formal job evaluation system
  • Different job evaluation systems available
  • Decision-making classification grading system
  • Team assignment A: Grading case study jobs on broad grades
Lunch
  • Presentation: Pay base for pay structure
  • Grouping of different pay items in the pay package
  • Advantages of a flexible package approach
  • Drawing up a scatter chart on Excel
  • Using different trend lines to obtain a pay scale midpoint line
  • Individual assignment B: Drawing a manual pay scale midpoint line for case study data
  • Plotting pay midpoint line in the pay scales table
Tea/Coffee
  • Presentation: Market positioning for pay structure
  • Choosing appropriate market sectors – industry, region, function, organisational size
  • Choosing date of market comparison – lead/lag principles
  • Presentation: Positioning within market data – mean, median, quartiles, percentiles
  • Choosing appropriate salary surveys – quality and representativeness of data
  • Individual assignment C: Plotting market data in pay structuring case study scatter chart
  • Revising pay scale midpoint line to accommodate market data
  • Plotting revised pay midpoint line in the pay scales table
End Day 1 approx. 4.30pm


DAY 2

Start 9.00am
  • Presentation: Pay structure mechanics – pay ranges, pay slope, pay overlap, smoothing the pay line
  • Advantages/disadvantages of using narrow grades, broad grades, career bands for pay structure
  • Calculation of pay structure formulas
  • Guidelines around pay ranges, slopes and overlap
Tea/Coffee
  • Individual assignment D: Calculating pay slopes and checking the smoothness of the pay lines for the two lines of best fit/pay scale midpoints already drawn up
  • Team assignment E: Drawing up pay scales for case study data taking into account pay range, slope and overlap guidelines
  • Plotting data in scatter chart
  • Calculating pay slope, range and overlap in pay scales table
  • Presentation: Positioning staff in the pay scale
  • Adjusting employees below minimum
  • Options for employees above maximum
  • Market premiums for specific categories/functions
  • Sales positions
  • Different approaches to positioning staff within the pay scale
Lunch
  • Team assignment F: Costing of employees below minimum in pay structuring case study
  • Rationale/options for employees above maximum
  • Introducing appropriate market premiums
  • Positioning employees within the pay scale
Tea/Coffee
  • Presentation: Reviewing the pay structure
  • Timing and frequency of pay review
  • External factors: Pay movements, inflation, benefit trends, economy, tax changes, socio-political issues
  • Internal factors: Organisational profitability, cost constraints, employee compa ratios to pay scale and to market, labour turnover, areas of concern, bargaining unit negotiations
  • Team assignment G: Reviewing the pay structure for the pay structuring case study, taking into account internal and external information provided
  • Preparing a presentation to the HR Director on proposed pay review
  • Presentations to HR Director

Close approx. 4.30pm
Dianne Auld, GRP, CCP, CSCP
Dianne Auld, GRP, CCP, CSCP
Senior Consultant

Dianne owns a consulting practice, Auld Compensation Consulting, in South Africa. She consults to a wide range of organisations across Africa and the Middle East in all areas of total rewards: reward strategy, base pay management, remuneration surveys, job evaluation, broadbanding, pay structuring, incentive design and sales compensation. She has developed and taught courses in Africa, the Middle East, the Far East, Europe, and the United States.

In conjunction with WorldatWork, she has developed a series of Excel learning products including: Excel Skills for Compensation Professionals; Excel Tips; Compensation Excel Dashboards; and a series of Sales Compensation Excel Dashboards. Dianne is also a faculty member at WorldatWork and a reviewer for the WorldatWork Journal. Since 2012, she has presented each year at the Worldatwork US Total Rewards conference.

VENUE AND ADMIN. DETAILS

The venue for our comp & ben courses

TBC

London airports

London is served by five main airports, from the UK's main gateway at London Heathrow to London City Airport in the Docklands. For information on getting to and from London airports to Holborn in central London, visit Transport for London at www.tfl.gov.uk

Special requirements

Please let us know if you have any special requirements as soon as possible so we can plan accordingly.

Hotel accommodation

Delegates are responsible for their own accommodation.

Do you need a visa?

A questionnaire on the UK Border Agency web site will help you to decide whether you need to obtain a visa before you travel to the UK. It also contains guidance on the type of visa that you might need. The questionnaire is for all foreign nationals who want to come to or transit the UK. ('Transit' means to pass through the UK on your way to another country without staying here.)

Please visit: www.ukba.homeoffice.gov.uk/visas-immigration/do-you-need-a-visa/

Dress code

Casual.

Documentation

You will receive your course materials on arrival for the class.

Refreshments

At registration we will serve you complimentary teas and coffees. Mid-morning break of teas and coffees are served at around 11.00am. Lunch will be served at approx 12.00pm.

DAY 1

Registration 8.30am to 9.00am
  • Introductions
  • Presentation: Overview of pay structuring
  • Introduction to pay structuring case study
Tea/Coffee
  • Presentation: Grade basis for pay structure
  • Alternatives to formal job evaluation
  • Advantages/disadvantages of using a formal job evaluation system
  • Different job evaluation systems available
  • Decision-making classification grading system
  • Team assignment A: Grading case study jobs on broad grades
Lunch
  • Presentation: Pay base for pay structure
  • Grouping of different pay items in the pay package
  • Advantages of a flexible package approach
  • Drawing up a scatter chart on Excel
  • Using different trend lines to obtain a pay scale midpoint line
  • Individual assignment B: Drawing a manual pay scale midpoint line for case study data
  • Plotting pay midpoint line in the pay scales table
Tea/Coffee
  • Presentation: Market positioning for pay structure
  • Choosing appropriate market sectors – industry, region, function, organisational size
  • Choosing date of market comparison – lead/lag principles
  • Presentation: Positioning within market data – mean, median, quartiles, percentiles
  • Choosing appropriate salary surveys – quality and representativeness of data
  • Individual assignment C: Plotting market data in pay structuring case study scatter chart
  • Revising pay scale midpoint line to accommodate market data
  • Plotting revised pay midpoint line in the pay scales table
End Day 1 approx. 4.30pm


DAY 2

Start 9.00am
  • Presentation: Pay structure mechanics – pay ranges, pay slope, pay overlap, smoothing the pay line
  • Advantages/disadvantages of using narrow grades, broad grades, career bands for pay structure
  • Calculation of pay structure formulas
  • Guidelines around pay ranges, slopes and overlap
Tea/Coffee
  • Individual assignment D: Calculating pay slopes and checking the smoothness of the pay lines for the two lines of best fit/pay scale midpoints already drawn up
  • Team assignment E: Drawing up pay scales for case study data taking into account pay range, slope and overlap guidelines
  • Plotting data in scatter chart
  • Calculating pay slope, range and overlap in pay scales table
  • Presentation: Positioning staff in the pay scale
  • Adjusting employees below minimum
  • Options for employees above maximum
  • Market premiums for specific categories/functions
  • Sales positions
  • Different approaches to positioning staff within the pay scale
Lunch
  • Team assignment F: Costing of employees below minimum in pay structuring case study
  • Rationale/options for employees above maximum
  • Introducing appropriate market premiums
  • Positioning employees within the pay scale
Tea/Coffee
  • Presentation: Reviewing the pay structure
  • Timing and frequency of pay review
  • External factors: Pay movements, inflation, benefit trends, economy, tax changes, socio-political issues
  • Internal factors: Organisational profitability, cost constraints, employee compa ratios to pay scale and to market, labour turnover, areas of concern, bargaining unit negotiations
  • Team assignment G: Reviewing the pay structure for the pay structuring case study, taking into account internal and external information provided
  • Preparing a presentation to the HR Director on proposed pay review
  • Presentations to HR Director

Close approx. 4.30pm

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