Base Wage/Salary

Structure
Tep Chetra

Base wage/salary structure.

There are various segments of compensation process fit
together to establish the base wage or salary structure
for an organization.
Each step of the process is influenced by the
compensation policies.
An organization compensation system should produce a
base wage/salary structure that is both internally and
externally equitable

New Approach to the base

wage/salary structure
Broadbanding
Skills-based pay
Competency-based pay
Market-based pay
Total rewards

Broadbanding
Broadbanding
Is a base pay technique that reduce many different salary
categories to several broad bands.
or is Collapsing job clusters or tiers of positions into a few
wide bands to manage career growth and deliver pay
bands usually have minimum and maximum dollar amounts
that overlap and an average width of 130% of the minimum.

Broadbanding
Advantages
Managers have more autonomy in setting pay rates
Easier to move employees around
Overcome reluctant of lateral moves or downgrading in flat
organizations
Helps improve communication teamwork