Salary Administration

We define Salary Administration as everything that occurs with regard to managing employee base salaries after the creation of the actual ranges themselves. We also specialize in creating base salary ranges. Click here to view a description of that practice.

Base salaries are sadly misunderstood. Companies consider them part of the cost of doing business. Employees feel they earn them by merely showing up. Neither party really understands what base salaries are intended to do, when and why they should go up (or down), how to determine when they are too high or too low, and perhaps most importantly, when it’s time for them to stop getting higher.

What’s more, the simple act of creating a base salary range brings with it enormous responsibility. How so? Because it immediately begs the question “how do I move through that range?” This simple question has proven remarkably difficult to answer. And the countless attempts at answering it are strikingly inadequate. This often results in confusion, frustration, waste, and demotivation.

The good news is that base pay rarely becomes the actual reason people leave. Sure, they’ll tell you they are leaving because their pay is low because that’s easy message to deliver than “I hate my job” or “I don’t respect my boss.” But research shows pay must become seriously out of whack before it will generate turn-over on its own. But just because getting pay into the right general ball-park is usually enough to avoid generating turn-over, it is not enough to ensure you are maximizing your return on this extraordinarily large component of most businesses cost structure.

We help unwind the Gordian knot that is Salary Administration, by divide it into several sub-categories:

  • Measuring individual performance
  • Handling people paid over the maximum or below the minimum
  • Determining the size of salary increases
  • Budgeting the overall cost of salary increases
  • Tracking each employee’s progress through their range
  • Communicating pertinent information

​We have a wide range of tools and techniques developed over decades to accomplish each task. Our deep understanding of the impact each element has on employee behavior and motivation will guide you to the right solution. When we are done, you will have a base salary program that is consistent, equitable, legally compliant, motivation, and most important clearly understood by each employee.