In a BLR webinar titled "Compensation: Implementing an Effective Market Pricing Methodology," Chris Kelley, founder and CEO of KnowledgePay, Inc., offered tips for success in implementing a market pricing methodology for determining salaries.
First, start with the end in mind. Employers should consider what business imperatives are driving them to implement market pricing, and how far they plan to go with it.
Employers should also articulate the "rules of the road" up front and then consistently follow them.
In addition, employers should emphasize education and communication. Proper training is essential to a successful market pricing plan.
Finally, employers must manage pay data efficiently and effectively. To do this, adequate data managements systems must be in place.
Chris Kelley is the founder and CEO of KnowledgePay, Inc. He has more than 20 years of experience working in corporate Human Resources/Compensation, and has led one of the largest implementations of market pricing in the U.S. He also serves as adjunct faculty for WorldatWork, and has been teaching Market Pricing since 2005. Visit his company's website at www.knowledgepay.com.