Create a Pay Strategy

This explains how to create a Pay Strategy using OpenComp. The net result is that you will have Salary Ranges (aka Pay or Salary Bands) for your organization.

One of the most powerful components of the OpenComp solution is our Pay Strategy module. The Pay Strategy module is - fundamentally - the expression of your organization's Compensation Philosophy. It allows you to define how you want to compensate employees relative to market data on benchmarked roles.

So, let's get into it.

There are 4 steps to creating your Pay Strategy.

Select Your Geographic Strategy

The Geographic Strategy let's you determine how to pay employees, relative to Market Data, based geographic settings. Read more on how to Select Your Geographic Strategy.

Set Target Market Percentiles

This setting allows you to specify - on a percentile basis - how you want to pay your employees relative to companies like yours. Read more on how to Set Target Market Percentiles.

Specify Range Widths

This optional setting allows you specify the percent included above and below the midpoint of a range. As pay levels go up (and promotions tend to slow), each range will natural get wider. Read more on how to Specify Range Widths.

Job Family or Group-based Ranges

This setting allows you to set ranges at the Job Family level or to set ranges based on groupings of Job Families with similar market values. The former produces a Pay Strategy with more Pay Ranges whereas the latter results in a fewer number of Pay Ranges. Read more on Job Family or Group-based Ranges.

To dive straight into creating your Pay Strategy, click on⚙️ icon (for Scenario Settings) on the top left and click into Pay Strategy.