1. All you need to know about pay in
late 2015
by Toronto Training and HR
September 2015
2. CONTENTS
3-4 Introduction
5-6 Definition
7-8 Elements of pay structures
9-10 Pay compression
11-15 Linking pay to competencies
16-18 Pay progression and pay structures
19-20 Building pay grades and salary ranges
21-22 Performance-related pay
22-23 Extroverts and introverts
23-25 Ways in which employees may be paid
26-27 Factors that influence pay raises
28-30 Reasons for dissatisfaction with a pay raise
31-33 Reasons for satisfaction with a pay raise
34-36 Explanations given to employees about the pay decision
37-38 Recognizing all parts of total rewards
39-40 Assessing the suitability of an employee for a raise
41-42 Myths around equal pay
43-44 Tests around equal pay
45-46 What does a top 100 CEO earn in Canada?
47-48 How much should I pay?
49-50 Conclusion, summary and questions
Page 2
4. Page 4
Introduction to Toronto Training
and HR
Toronto Training and HR is a specialist training and
human resources consultancy headed by Timothy Holden
10 years in banking
15 years in training and human resources
Freelance practitioner since 2006
The core services provided by Toronto Training and HR
are:
Training event design
Training event delivery
HR support with an emphasis on reducing
costs, saving time plus improving employee
engagement and morale
Services for job seekers
12. Linking pay to
competencies
2 of 4
⢠Essential competencies
⢠Differentiating
competencies
⢠The iceberg model of
competencies
⢠Questions to ask
Page 13
13. Linking pay to
competencies
1 of 4
⢠Skill-based pay
⢠Team-based programs
⢠Traditional
compensation systems
⢠Predictors of superior
performance
Page 13
14. Linking pay to
competencies
3 of 4
Designing and
implementing a
competency model
⢠Core competencies &
strategic context
⢠Identify sample of
superior performers
⢠Collect data
⢠Design, validate and
communicate models
⢠Evaluate individuals
based on competencies
Page 14
15. Linking pay to
competencies
4 of 4
Alternative approaches
⢠Define how pay will be
linked to competencies
⢠Salary structure
⢠Promotional increases
⢠Annual salary increases
⢠Merit pay
⢠Incentives
Page 15
17. Pay
progression
and pay
structures
1 of 2
⢠Definitions
⢠The impact of pay
structures
⢠Objectives of pay
structures
⢠Types of pay structures
⢠Issues in introducing or
replacing pay structures
Page 17
18. Pay
progression
and pay
structures
2 of 2
⢠Factors contributing to
local pay variation
⢠Methods of determining
pay progression
⢠Techniques to control
pay progression
Page 18
24. Ways in
which
employees
may be paid
1 of 2
⢠Based on how well I
perform
⢠Linked to inflation/
cost of living
⢠Based on my
experience
⢠Linked to the going
rate for the job that I
do
⢠Linked to how well
my organization
performs
Page 24
25. Ways in
which
employees
may be paid
2 of 2
⢠Based on how long I
have worked for the
employer
⢠Linked to how well
the team or
department performs
⢠Based on a trade
union negotiated deal
⢠Based on how old I
am
Page 25
29. Reasons for
dissatisfaction
with a pay
raise 1 of 2
⢠It did not keep pace with
increases in the cost of
living/inflation
⢠It did not reflect how well
I had performed at work
⢠My pay is below what I
could get elsewhere for
doing the same job
⢠It was below the pay
increase of senior
management
Page 29
30. Reasons for
dissatisfaction
with a pay
raise 2 of 2
⢠It did not reflect the state
of the economy
⢠It did not reflect my
experience
⢠It did not reflect how
much money the
organization had to make
a pay award
⢠It did not reflect how well
my team has performed
at work
Page 30
32. Reasons for
satisfaction
with a pay
raise 1 of 2
⢠It reflected the state of
the economy
⢠It reflected how well I had
performed at work
⢠It was more than I
received last year
⢠My pay is at or above
what I could get
elsewhere for doing the
same job
Page 32
33. Reasons for
satisfaction
with a pay
raise 2 of 2
⢠It kept pace with
increases in the cost of
living or inflation
⢠It reflected how much
money the organization
had to make a pay award
⢠It reflected my experience
⢠It did not discriminate
against me because of my
minority background
⢠It reflected my length of
service
Page 33
35. Explanations
given to
employees
about the pay
decision 1 of 2
⢠How much money my
organization had to spend
⢠The state of the economy
⢠My individual performance
⢠The cost of living or
inflation
⢠A trade union pay deal
⢠The going rate for the job
⢠My teamâs performance
⢠How long I have worked
for the employer
Page 35
36. Explanations
given to
employees
about the pay
decision 2 of 2
⢠The value of my benefits
package
⢠An increase in the
minimum wage
⢠The implementation of
equal pay
Page 36
38. Recognizing all
parts of total
rewards
⢠External position
equity
⢠Internal position
equity
⢠Employee pay and
recognition equity
⢠Total non-cash
compensation
⢠Ability to fund all
aspects of the
program
Page 38
42. Myths around
equal pay
⢠Equality is all about
making everyone the
same
⢠Itâs a pay problem
⢠If you take it in the
round it works out
broadly the same
⢠We have a points-
based job evaluation
scheme so weâre OK
⢠We canât afford to do
anything about it
Page 42
46. What does a top
100 CEO earn in
Canada?
⢠Total compensation
⢠Base salary
⢠Cash bonuses
⢠Grants of company
shares
⢠Stock options
⢠Other compensation
⢠Pension
compensation value
increase
Page 46
48. How much
should I pay�
⢠Admin assistants
⢠Chemical engineers
⢠Creatives
⢠Credit and
collections people
⢠Directors
⢠Engineers
⢠HR
⢠In-house counsel
⢠Sales
⢠Web and internet
professionalsPage 48