External Market Pricing, Internal Job Evaluation, Salary Grade Structures, Pay Equity Analysis and Merit Budget Planning
A well-managed compensation system requires tools to accurately value jobs and administer equitable salaries. HRToolbench provides embedded salary administration tools and content to guide HR business partners through the steps of an effective salary administration process, including analyzing external survey data, internally valuing jobs, maintaining salary grade structures and ranges, assigning jobs to grades, identifying employee pay equity issues, and managing the merit increase recommendation process.
Pre-Defined Salary Grade Structure
HRToolbench provides a default 35-grade salary structure reflecting market competitive ranges that are adjusted for each organization based on local geographic pay practices. Jobs can be assigned to appropriate salary grades using various methods. Alternatively, HR business partners can set up and maintain the organization's own internal salary grade structures. Included with the HRToolbench subscription is annual salary grade structure update based on national salary market movement.
External Job Market Pricing
HR business partners can enter external competitive salary data related to individual jobs into HRToolbench. These data are automatically aged to maintain currency based on a prescribed percentage aging factor. Multiple market data for a single job are individually weighted to calculate a composite external market target rate for a job, which is then correlated to the closest salary range midpoint for automatic grade assignment. HR business partners can choose the best approach for valuing any job—external, internal or custom. Typically, jobs experiencing intense market pressure are externally priced and assigned to a salary grade that best reflects competitive market pressures. Jobs of important strategic value to an organization can be valued internally for assignment to appropriate salary grades that exceed external competitive salary levels.
Internal Job Evaluation
HRToolbench provides a proprietary internal job evaluation (point/factor) methodology for use in determining the worth of jobs based on internal organization perceptions. The internal job evaluation system can be used to project a job's intrinsic worth to the organization when external market data are unavailable, or when a hybrid job is too unique to be accurately market priced. Jobs are evaluated by assigning points based on 10 separate factors that statistically correlate with job worth. The total point score attributed to a job is used to calculate the job's projected salary and to assign the job automatically to an appropriate salary grade.
Merit Increase Planning
A merit increase budget planning tool enables HR business partners to assess the overall competitiveness of the organization's salaries and then to estimate the cost of different merit increase guideline scenarios. This helps to determine the optimum merit increase guidelines that will achieve desired competitive impact while balancing affordability. Merit increase recommendations and approvals are entered interactively online by supervisors and managers. Proposed employee salary increase recommendations are automatically queued through the approval chain. Rollup cost analyses help to ensure organization-wide compliance with approved budgets and salary increase guidelines.
Pay Equity AssessorHRToolbench helps to identify top performing employees who may be at risk of voluntary resignation due to dissatisfaction with pay. The pay equity assessor predicts an appropriate salary for an employee based on historical performance ratings and other criteria gathered from the employee's supervisor. It then assigns a pay adjustment amount and priority ranking to the employee that helps supervisors and HR allocate the salary increase budget more strategically where it will have the greatest impact retaining top talent.