Salary Management 101

How to perform salary planning and ongoing compensation management.

Christopher Rath

2005-11-14

The original PowerPoint file and a PDF version are also available under the same license.

Background Motivation

Grounding Statements

Salary Management Tools

Guiding Philosophy

Salary Management Process

This process should be invoked whenever an employee:

The process steps:

  1. Determine the employee’s target salary.
  2. Establish their development velocity.
  3. Build a CD/Merit plan for them.
  4. Execute the plan in response to continued development.

1. Determine Target Salary

2. Establish Development Velocity

3. Build CD/Merit Plan

Sample Salary Management Worksheet

Employee

Months In Role

Current Salary

Target Salary

Velocity (months)

Months Remaining To Develop

# Merit/CD Raise Events

$ Amt. per Raise Event

% Amt. per Raise Event

Employee One

3

$ 50,000

$ 60,000

20

17

3

$ 3,333

6.3%

Employee Two

24

$ 45,000

$ 55,000

36

12

2

$ 5,000

10.6%

4. Execute The Plan

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©Copyright 2005, Christopher & Jean Rath
Telephone: 613-824-4584
Address: 1371 Major Rd., Ottawa, ON, Canada K1E 1H3
Last updated: 2007/02/16 @ 09:49:34 ( )