S2/Ep12: Creating Salary Ranges

This discussion is based on David Weaver’s article on the HR professional's guide to creating salary ranges. The talk explains the importance of salary ranges in controlling labor costs and managing employee compensation. It outlines a four-step process for establishing salary ranges, starting with grouping jobs into grades based on their value, then setting the minimum, midpoint, and maximum for each grade. Weaver emphasizes the need to consider range overlap and connect the salary structure to the company's performance management system. This deep dive also discusses different pay structures, including unified and multiple structures, as well as the pros and cons of broadbanding. Finally, it addresses the topic of whether to communicate salary ranges to employees and managers and stresses the importance of regularly reviewing and updating salary ranges to maintain competitiveness.