Stronger organizations. More vibrant communities.
We’re on the topic of developing fair and equitable pay in organizations. For background on the series and the importance of pay transparency, please see Installment 1: Overview and Key Steps.
Examining the current pay scale (sometimes called a salary schedule) is the first in-depth activity for leadership in understanding how employees are paid. If none exists, create one.
Here’s a sample of what we include at Upward Development when building pay scales to document current pay in an organization:
Note: I’m recommending a pay scale by position first, without naming individual employees. This supports more consistent budgeting, pay transparency and equitable compensation practices for organizations.
Establishing pay ranges and grades by position is a more objective and evergreen exercise, because the pay scale applies to an organization regardless of the people occupying each role.
A second phase of analysis might include a by-name pay scale, which would highlight disparities in pay for people holding the same positions. This is a far more complex technical exercise because seniority, expertise, and other issues must be taken into account. Of course, the human aspects of reviewing and adjusting pay are also very personal; it’s best to tread carefully on this ground.
Once the pay scale is complete with current and accurate data, it’s possible to identify:
Optional Considerations
Additional Reading
How pay transparency can keep people from quitting – Anne Fisher
All right, we need to talk about nonprofit salaries – Vu Le
In Closing
Check back next week for tips on how to complete a wage comparability study (external data) to go with your pay scale (internal data). Comparison of the two will ultimately lead to a new pay schedule, which outlines the desired wages and pay ranges for each position.
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