GRP – GR4: Base Pay Administration and Pay for Performance

Base Pay Administration and Pay for Performance (Certification Exam: C4/GR4)

Learn how to design a pay programme that is fair, competitive and supports your organisation's compensation strategy. This course provides an in-depth discussion of the principles, design, implementation and evaluation of an employee base pay programme.

• Identify the relationship between an employee total rewards programme and an organisation's business strategy.
• Discuss the design of base pay programmes and necessary considerations.
• Discover what it takes to implement and deliver base pay.
• Examine pay for performance merit pay systems including development, utilisation and costing.
• Address the effectiveness and efficiency of pay programmes through monitoring and evaluation.
• Discern how and when HR should be involved in mergers and acquisitions.

What You Will Leam

The Role of Base Pay in Total Rewards
• The total rewards model
• The total rewards design process
• Introduction to base pay
• Job evaluation methods
• Job worth hierarchy

Designing Base Pay Structures
• Building a base pay structure
• Pay structure design and considerations
• Broadbands

Practical Applications of Base Pay Structure Design
• Exercise 1 - Market pricing approach
• Exercise 2 - Point factor approach
• Exercise 3 - Integrating market data into point factor

Base Pay Implementation and Delivery
• Pay approaches
• Job-based pay
• Differentials
• Pay actions
• Communicating pay actions
• New hire rates

Pay for Performance and Salary Budgeting
• Pay for performance
• Compensation strategy and philosophy
• Principles of merit pay programs
• The base pay investment
• Merit Increase guidelines
• Components of market-based salary budget

Administering and Evaluating Base Pay Programmes
• Monitoring pay levels
• Compression
• Maintaining pay structures
• Base pay programme review and audit

Mergers, Acquisitions and Base Compensation
• HR involvement
• Key priorities for HR in the process
• HR participation on teams
• Integrating compensation plans
• Communicating compensation changes