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They're at the same level, but maybe not doing the same job. Even if they're nominally in the same "job code" the actual mechanics of what they are doing, the s

They're at the same level, but maybe not doing the same job. Even if they're nominally in the same "job code" the actual mechanics of what they are doing, the sensitivity of their work, the skills required for success, the markets/industries they are operating in, the pay scale where they live, the level of functional support they are receiving may all be substantially different. Of course there may also be other decisions such as upping salary to entice an employee not to accept that other job offer they got (do you want to remove pay leverage of looking for jobs elsewhere by mandating same salaries?), or any such other consideration. Individual pay isn't some 2+2=4 math equation, it's multifactorial. Now any company with good internal controls would have people in some sort of band where for comparable (not identical) work there's a range of normalcy relative to the value the work provides in the given markets the labor is occurring.

layer8 3y ago
What does “same level” even mean then?
- HelloMcFly 3y ago
  Organizational leveling criteria is a reflection of your internal hierarchy of authority, decision making, and accountability. Compensation criteria considers that to a degree, but also accounts for more externalities, individual organizational differences, and at times a reflection of strategic priorities. These things are related certainly, but they cannot be considered interchangeable of you will find yourself over-paying for labor or losing recruiting battles to your talent competitors due to underpaying. Believe me - most organizations would love nothing more than to just pay everyone the same and be able to retain their desired stuff and stay competitive in the market. Compensation activities are a drain.
muspimerol 3y ago
> the actual mechanics of what they are doing, the sensitivity of their work, the skills required for success, the markets/industries they are operating in Surely these are all criteria that should determine your level. What's the point of levels if you're saying each level consists of arbitrary other levels? I agree that a range should be public, but an employee's salary should remain within the range for their level. If they're demonstrably more valuable to the company, they should be promoted within a transparent structure.
- HelloMcFly 3y ago
  All of these things can substantially vary within a single internal level (or external benchmark grade). Why would your physical location determine your level? Why would your career level change if you're doing the same type of work as someone, but using a technology or skillset that is more rare and thus commands a higher premium in the marketplace? Another example: two people doing the same type of accounting work, but one of them has to get national security clearance for the group they cover - same level, same job, but the barriers to entry for one of those jobs will create a substantial compensation variance (but the level doesn't change). Organizational leveling criteria and compensation criteria are certainly related, but not interchangeable. Organizational leveling criteria is a reflection of your internal hierarchy of authority, decision making, and accountability. Compensation criteria considers that to a degree, but also accounts for more externalities, individual organizational differences, and at times a reflection of strategic priorities.

layer8 3y ago

What does “same level” even mean then?

HelloMcFly 3y ago
Organizational leveling criteria is a reflection of your internal hierarchy of authority, decision making, and accountability. Compensation criteria considers that to a degree, but also accounts for more externalities, individual organizational differences, and at times a reflection of strategic priorities. These things are related certainly, but they cannot be considered interchangeable of you will find yourself over-paying for labor or losing recruiting battles to your talent competitors due to underpaying. Believe me - most organizations would love nothing more than to just pay everyone the same and be able to retain their desired stuff and stay competitive in the market. Compensation activities are a drain.

muspimerol 3y ago

> the actual mechanics of what they are doing, the sensitivity of their work, the skills required for success, the markets/industries they are operating in Surely these are all criteria that should determine your level. What's the point of levels if you're saying each level consists of arbitrary other levels? I agree that a range should be public, but an employee's salary should remain within the range for their level. If they're demonstrably more valuable to the company, they should be promoted within a transparent structure.

HelloMcFly 3y ago
All of these things can substantially vary within a single internal level (or external benchmark grade). Why would your physical location determine your level? Why would your career level change if you're doing the same type of work as someone, but using a technology or skillset that is more rare and thus commands a higher premium in the marketplace? Another example: two people doing the same type of accounting work, but one of them has to get national security clearance for the group they cover - same level, same job, but the barriers to entry for one of those jobs will create a substantial compensation variance (but the level doesn't change). Organizational leveling criteria and compensation criteria are certainly related, but not interchangeable. Organizational leveling criteria is a reflection of your internal hierarchy of authority, decision making, and accountability. Compensation criteria considers that to a degree, but also accounts for more externalities, individual organizational differences, and at times a reflection of strategic priorities.