Creation of a salary structure

Creation of a salary structure, based on 3 key components: prevailing market pay, competencies and performance of the individual.

Company

Pharmaceuticals – Belgium branch of US company

Situation

The Company had no salary structure in place, did not use benchmarking information. Salary reviews were thus not structured and led to inequity and incoherencies.

Objective

Create a salary structure based on benchmarking information, mastering level of competencies, and performance of the individuals.  The final objective being to ensure fairness and equity.

Actions

Thanks to the competency model recently implemented, measurement of the mastering level of competencies of every individual. 

Linkage of every job to benchmarked salary information, and calculation of a comparatio for every individual.

Development of a matrix performance rating/comparatio in order to define priorities in the yearly salary review.

Results obtained

Establishment of a compensation level for new hires. The yearly salary reviews were much more objective.  It allowed treating employees with fairness and equity.

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