2012 Salary Structure Policies and Practices
Attracting and retaining critical talent is a vital strategy for any organization’s success. Competitive pay structures are the basis to have the right talent in right places at any required time. This study from Deloitte LLP, 2012 Survey of Salary Structure Policies and Practices, indicates that the most prevalent types of pay structure consist of the market-based salary structures (64 percent) followed by traditional (23 percent) and broadband (12 percent) structures.
Based on 910 responses the survey was conducted by Deloitte Consulting LLP in conjunction with WorldatWork. The respondents were WorldatWork members and Deloitte contacts employed in the HR, compensation and benefits departments and were not exclusive to U.S. organizations. 65 percent of the respondents were from the private sector while 35 percent represented public sector and nonprofit. Some of the key findings are:
- Traditional structure range spreads appear to have increased over time and midpoint progressions have loosened.
- For market-based structures, broadbands and step structures, larger organizations tend to have wider ranges whereas smaller organizations have smaller ranges.
- Consulting, professional, scientific & technical services appear to be the heaviest users of market-based ranges.
- Out of the 80 percent who responded that salary ranges are adjusted regularly in their organization, 70 percent do so annually while 12 percent adjust every two years.
- The most popular tool for salary structure design, administration, record and communication were spreadsheet applications (e.g., Microsoft Excel). Other common tools for design, administration and record were point solutions (e.g., tools specifically focused on salary structure management) and Enterprise Systems (e.g., Oracle, PeopleSoft, SAP).
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.