We
review existing compensation structures to determine the best
alternatives for each company's situation. In many cases, these
are companies with no structures that have grown to the point
where internal equity is now a strong issue and difficult to control
without some mechanism. In other cases, the structures are simply
too complicated or too much of an administrative burden for the
compensation staff, especially where complex point factor systems
exist.
Types
of Structures
Traditional
(standard min/max and midpoint spread)
Tulip
(increasing spread as you increase the grade)
Broadband
(with and without zones)
Market
Pricing (using the 25th, 50th and 75th as control points)
What
to Avoid
Avoid
using point factor systems with more than five compensable factors
to evaluate and slot a position. Realistically, you do not get
value added accuracy beyond five factors. This is due to the fact
that each grade has a range of points, and those ranges are generally
assigned (bucketed) based on a ranking of all positions during
the initial stages of structure development.
Number
and geographic ~~location
of the facilities 
