Pay Structuring
Course Information

Three-day virtual classroom instructed by leading compensation expert – Dianne Auld

Date: 6-8 July 2020.
Location: Live stream via zoom.
Duration: Monday-Wednesday, three days, 9am to 1pm.
Fees: £700 + VAT per delegate.

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.

Here’s what Dianne says about the course:

I first provide an overview of pay structuring, explaining all the issues we will consider over the next two days.
Then I delve into each issue, discussing the principles, rationale, pros and cons, methods, possible alternative approaches etc., always drawing on both my experience and the class’s experience.
Then we apply the learnings to an in-depth case study. In the case study the delegates, in small teams, build a pay structure for a small organisation, starting off with evaluating all the jobs, then developing a pay line based on internal employee pay, then overlaying that with market data and revising the pay line to accommodate the market, then developing pay ranges and calculating a number of different pay scale formulas, then deciding how to deal with anomalies, where to put in premium pay etc. and finally putting together a presentation on reviewing the pay structure given a very detailed practical real life scenario.
So the course is intensely hands on. I teach delegates the same methodology that I apply in all my pay structuring work, and share with them learnings from my work with different companies. The methodology works across industries and different size organisations. One of my key focus areas as a consultant is pay structuring, and I have developed pay structures for dozens of different organisations across industries and countries. In fact I have just finished updating the pay structures for one of my clients for the UK, US, China, Australia and South Africa.
My aim by the end of the class is that delegates will know exactly how to implement a new or revised pay structure/s in their organisations.

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

What delegates said about this course

'It’s absolutely invaluable and this is hands down the best training I’ve ever had! Thank you.'
'The course covered everything I had wanted in just the right amount of detail.'
'Dianne was brilliant, very engaging. Just what was needed. The time went so quickly and wasn’t boring at all!'
'Dianne was worldly and informative.'
'Dianne was really engaging, positive and interesting.'
'Really interesting and useful course with a great instructor.'
'Dianne was very good, informative and engaging.'
'Very high level of knowledge.'
'A great course, would highly recommend. Really great to understand the end to end process.'
'The course gave me an awful lot to think about.'
'Excellent instructor.'
'Very good with loads of useful examples. Dianne has an excellent skill in getting information across.'
'The practical examples and the way Dianne built up the content was very good.'
'Very good – I haven’t been on one of Dianne’s courses before but I will certainly do some more.'

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.

Virtual classroom, live streamed

PAY STRUCTURING VIRTUAL COURSE

AGENDA

DAY 1

9.00-9.15:
  • Introductions
9.15-10.00:
  • Presentation: Overview of pay structuring
  • Practical pay structure examples
  • Introduction to pay structuring case study
10.00-10.45:
  • Presentation: Grade basis for pay structure
10.45-11.00:
  • 15-minute break
11.00-11.45:
  • Alternatives to formal job evaluation
  • Market pricing approach
  • Formal job evaluation approach
  • Definition, pros and cons
  • Point factor systems
  • Classification systems
  • Paterson Decision Making classification system
11.45-12.30:
  • Assignment A: Grading case study jobs on Paterson broad grades
  • Feedback on assignment
12.30-13.00:
  • Presentation: Pay base for pay structure
  • Grouping of different pay items in the pay package
  • Advantages of a flexible package approach

DAY 2

9.00-9.30:
  • Presentation: Drawing up a scatter chart on Excel
  • Using different trend lines to obtain a pay scale midpoint line
9.30-9.45:
  • Assignment B: Drawing a manual pay scale midpoint line for case study data
  • Plotting pay midpoint line in the pay scales table
9.45-10.45:
  • Presentation: Market positioning for pay structure
  • Choosing appropriate market sectors (industry, region, function, organisational size)
  • Choosing date of market comparison (lead/lag principles)
  • Positioning within market data (mean, median, quartiles, percentiles)
  • Choosing appropriate salary surveys (quality and representativeness of data)
10.45-11.00:
  • 15-minute break
11.00-11.30:
  • 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
11.30-12.30:
  • Presentation: Pay structure mechanics: Number of pay structures, 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 number of pay structures, pay ranges, slopes and overlap
12.30-13.00:
  • 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

DAY 3

9.00-9.45:
  • 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
09.45-10.45:
  • 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
10.45-11.00:
  • 15-minute break
11.00-12.00:
  • 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
12.00-13.00:
  • 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
Live stream 06/07/2020 - 08/07/2020

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