Compensation and Salary Structures Masterclass

Managing Salary Structure as part of Compensation and Total Reward Management to Meet Business Needs and Drive Employee Performance

3 day in-person class or 5 half-day online sessions

Offered in-person & online

Accredited by HRD Future & Course Facilitator

Course Introduction

A fundamental component of reward management and HR is a grade and basic salary structure, and these are often taken for granted. Rather than make changes, HR and reward professionals try to fit the ever-changing needs of their employees into a system that may not have been reviewed for many years.

Course Objectives

This course will provide you with the information and guidance to ensure your salary and grading structure meets your business needs, while allowing the company to attract and retain employees in an increasingly competitive pay market.  This course is aimed at both HR Generalists and Reward Specialists to help you review and revise your grading structure and salary structure to fit the ever-changing needs of your employees into a system that may not have been reviewed for many years.

Most employers want to ensure that they can “attract, retain and motivate” the best employees and teams, and this three-day course will cover the key areas in the overall compensation and benefits package that enable employers to adopt best-practices and compete more effectively in the war for talent whilst achieving cost-effectiveness for the employer.

Course Methodology

You will be provided with the information you need to make changes to your grading and salary structure. You will have an opportunity to test various ideas and to establish what may work for you. You will also be given access to various tools and techniques, as well as information on the latest trends and developments both in Asia and globally.  This course will involve working both individually in teams on practical case studies to gain detailed hands-on experience using the various tools and techniques that will be discussed throughout the course.

Case Studies

This course is designed for companies from all countries in Asia will and include the following case studies designed around best-practice companies based in Asia:

  • Determining a reward policy as part of the HR strategy and business mission and vision
  • Establishing a reward strategy linked to business strategy
  • Designing and selecting the most appropriate grading/salary structure
  • The debate of single bands versus broad-banding
  • The business benefits of single bands versus broad banding in managing jobs and grades
  • Establishing pay ranges that are externally competitive with market pay surveys
  • Designing the basic salary structure midpoints and payscales and pay ranges
  • Designing the basic salary structure and payscales and progression management
  • Managing base salary progression and management of compa-ratios
  • Managing the overall mix of the total reward package between salary and benefits and bonuses
  • Using recognition programmes to motivate both Baby-Boomers and Millennials
  • Using retention schemes and recognition plans as a strategic component of reward management

Course Facilitator

  • Global Remuneration Expert
  • Over 30 years of experience in HR and C&B
  • Global Guru #500 List
  • Global HR Leadership Award

Key Benefits of Attending

Increase your business performance and employee effectiveness through implementing compensation and reward systems that attract, retain and motivate staff

Align your basic salary structures and grades and compensation and reward systems to your business objectives and human resources strategy

Discover practical steps for implementing a grading system with a basic salary structure and pay scheme or for updating your existing compensation structures

Develop solutions for your own compensation and reward issues and challenges based upon practical case studies and interactive course and clinic discussions

Network with your fellow course delegates and course tutor to discuss practical issues related to compensation and reward management that will help you in your workplace

Who Should Attend?

This course is designed for everyone who requires an in-depth knowledge of working with and managing salary structures and compensation and reward issues, including all professionals and HR Generalists who work in HR at all career levels, and all C&B Specialists who work in Compensation and Benefits.

Detailed Agenda


  • The golden triangle of Reward Management (jobs, people and performance, and pay markets)
  • Why is compensation and reward management important?
  • The role of grading and salary structures in compensation and reward
  • How grading and salary structures have developed in Asia and Globally

Key Components of Pay Market Benchmarking and Compensation Design

  • The four necessary ingredients for successful remuneration design:
    • Pay Strategy
    • Grade Structure
    • Market Data
    • Number of Months

Ingredient-1 of Pay Strategy

  • Understanding the key Definitions, Statistics, and Modern Approaches
  • Knowing the key pay components and defining the appropriate pay market
  • Selecting the right pay market position and understanding sector pay
  • Determining a pay strategy benchmark and reward strategy
  • Linking the pay strategy and reward strategy to the HR strategy and business goals
  • How to assess if your pay structure is meeting your business objectives
  • Managing the balance between employee expectations and ability-to-pay

Ingredient-2 of Grade Structure

  • The role of job evaluation and the main job evaluation systems
  • The key job evaluation approaches and methodologies
  • The internal role to develop the grading structure
  • The external role to enable pay market benchmarking
  • Building the grade structure and determining how many grades
  • Understanding “single-step” and “double-step” grades
  • The pros and cons of broadbanding in different organisational cultures
  • The new trend back towards more grades to both manage costs and improve employee careers
  • The future trend of “agility”

Ingredient-3 of Market Data

  • Understanding different types of market pay surveys and definitions
  • Knowing how to interpret and utilise external pay market survey data and pay surveys
  • Using survey data from consultants or gathering your own survey data
  • Using salary surveys and market pay benchmarking tools in salary structure design

Ingredient-4 of Months

  • Are you designing for 12 or 13 or 14 guaranteed months (plus variable bonuses/incentives)

Simple Benchmarking and Developing Grading and Basic Salary Structures

  • Bringing all 4-ingredients together to design basic salary structures
  • Practical exercise on building a spreadsheet to analyse “basic salary” for benchmarking
  • Definition and types of basic pay structures
  • Selecting a grade and salary structure to meet your needs
  • Benchmarking and designing a grading and salary structure

Designing Salary Payscales and Compensation Structures

  • Establishing the midpoint of the pay-range for each grade
  • Determining the minimum and maximum salaries for pay-ranges
  • The various calculation formulae for determining minimum midpointmaximum
  • The single-step approach (80%-120%) and the double-step approach (70%-130%)
  • Defining and using compa-ratios and managing pay-ranges and position-in-range

Advanced Benchmarking on “Total Cash Package” and on Each Component (Salary, Bonus, Allowances)

  • Bringing all 4-ingredients together to design advanced total remuneration structures
  • Practical exercise on building a spreadsheet to analyse “total remuneration” for benchmarking
  • Benchmarking on “total cash package” and on each component (salary, bonus, allowances)

Implementing New Grading and Salary Structures

  • The role of management in implementation
  • The role of the HR and reward specialist
  • Guidance on how to make changes that ensure successful implementation
  • Communicating the new structures to employees
  • Managing progression through a pay range and managing comparatios
  • Coping with employees who reach the maximum of their payscale

Advanced Techniques for Managing Market Pay Premium

  • Different options for managing “pay premium” for specialist roles:
  • Adjusted basic salary payscale or specialist grades with dedicated payscales
  • Additional skills premium allowance or market allowance
  • Using ranges-within-ranges or using restrictive compa-ratio ranges
  • Advanced concepts for managing salary structures and advanced design of payscales
  • Managing “Narrow-Bands” and “Broad-Bands” and “Ranges-within-Range”

The Role of Recognition Programmes for Employees

  • Identifying the most appropriate schemes for your company
    Understanding the popularity of incentive schemes
    Some of the challenges of developing incentive schemes in Asia
    The case for recognition
    Types of recognition plans

The Role of Retention Programmes for Employees

  • What is a retention programme in both a risk and non-risk context?
  • Why have retention plans linked to talent management and key employee plans?
  • Identifying the most appropriate retention schemes for your company
  • Types of retention plans and the typical costs of retention schemes

What Others Say About This Course

“Very, very good course. Excellent instructor. Thank you, Robert. This course really put C&B in perspective for me."
“Robert, you’re the best. Excellent concept, approach and methodology! Very informative and well coordinated. Very practical in Malaysia.”
“What a workshop, a great speaker with good delivery skills that make attendees understand everything crystal clear.”
“Robert has excellent practical experience and provided several examples while addressing course objectives and answering our questions. I will now start designing the grading system andsalary scales in my organisation.”

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