Salary Administration

Salary Administration

The need for formalized base pay management is imperative to a company’s operational efficiency. Salary administration (also referred to as base pay administration), provides structure to compensation initiatives through competitive benchmarking, developing a salary structure, and drafting a salary administration manual for validity and consistency of salary decisions.

A formalized approach to benchmarking and base pay administration includes the following steps:

• Prepare job descriptions
• Benchmark specific positions using empirical data
• Build salary structure
• Develop salary ranges
• Draft a manual containing formal policies and procedures