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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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7

Positioning Salary Structures within the Total Rewards Context

ANDREW S. ROSEN

Buck Consultants

A salary structure is the combination of job groupings and salary ranges that make up the foundation of an organization’s pay system. On the one hand, it is perhaps the tool most commonly used (and most often taken for granted) for helping organizations build a human resources infrastructure. On the other hand, if crafted carefully and strategically, the salary structure can communicate clearly an organization’s cultural values and priorities and serve as a primary building block of a compensation program. Seen in this latter context, the salary structure can be a strong ally in a company’s efforts to attract, retain, and energize its workforce. ...

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