Pay bands (not to be confused with benchmarks) are internal salary ranges - minimum and maximum - for roles that are established within the business to guide managers and HR in setting salaries.
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Benchmarks are used to assess whether compensation including salary and even pay bands are competitive compared to the market. Compensation benchmarking data can be uploaded into PayAnalytics and is used as part of the Compensation Assistant solution to suggest relevant pay given a specific employee's and job's parameters. To learn more about benchmarking, see Compensation benchmarking data.
Within the PayAnalyticssystem, you can upload your internal pay bands or allow the system to automatically generate them based on a specific dataset, and these can be used when closing pay gaps, to ensure that employees pay is and remains above the minimum and below the maximum of their relevant pay band.
When configuring the suggested remediation actions in the system, you can apply pay bands to ensure that all employees are at or above the minimum salary defined by their band. This article covers how to configure and apply the pay bands.
To set up the pay bands, proceed as follows:
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Click on the Settings icon and select Pay bands.
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Choose a reference dataset. Based on this dataset, select Compensation component for the pay bands and the Groups that the component will be based on.
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You will automatically get pay bands that contain the minimum and maximum values that you have in your dataset, which you can easily update to match your needs.
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If you have defined pay bands outside PayAnalytics, you can upload the data in an Excel file.
Example of pay bands