Hay's recommendations for
hiring and promotion practices necessitate that employees' pay will be able to
move through the range and reach the midpoint (also referred to the market
average) in less than 10 years. Salt
Lake County pay policies will reflect the Hay Group's recommendation on how
employees are initially placed in the range and how they are allowed to move
through the range.
With any grade pay structures,
once the midpoint (market average) is established for each grade, the minimum
and maximum can be calculated at any desired range spread. The Salt Lake County Compensation Committee
agreed to a 50% range spread. This is a
standard practice in the market.
The range minimum and maximum
are established to set the limit or the dollar value of a job to an
organization. If the grades did not have
an established minimum or maximum, an organization could keep increasing the
base pay for any position without regard to its market value.
It is common with salary grade
pay structures for employees' pay to increase in the grade as their
competencies, expertise and performance increase. They usually do not rely
heavily on just an annual increase.
In order to keep employee
salaries competitive with the market, Human Resources must ensure that the
mid-point for each grade stay current.
Every year Salt Lake County will conduct market research, relying
heavily on salary survey data to determine what market average pay is for
benchmark positions in our organization.
Market average pay determines mid-points for our ranges. Keeping these mid-points in line with market
averages requires that our entire pay structures move accordingly. This means that minimum, midpoint, and
maximum ranges may go up periodically to keep up with the market.
NOTE: If employees are placed properly in their
range, and ranges move up to keep up with inflation and market demands, then it
will be rare for an employee to reach the maximum of their range. The exceptions will be for employees who are
in the same position for many many years.