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  • Telma Le Guen

The foundation of a compensation structure

Job architecture is the foundation of a compensation structure. 

When individual contributor roles career paths hit a ceiling too soon, and the response is to promote the employees to management roles simply to increase their salary...

this could be an indication you need a job structure review. 

It seems like a quick fix, but can lead to other problems:

→ ‘Individual’ success doesn't guarantee managerial effectiveness.

→ Lack of leadership skills can hinder team guidance and motivation.

→ Some prefer to excel in their roles, not become managers.

→ Promotions without readiness can lead to frustration and low morale.

The 'harder option' (hint: choose this one) is to have a 𝘄𝗲𝗹𝗹-𝗱𝗲𝘀𝗶𝗴𝗻𝗲𝗱 𝗷𝗼𝗯 𝗮𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲 that:

  • ensures internal equity, 

  • establishes clear job levels, 

  • facilitates career progression.

  • supports market competitiveness, and

  • supports the needs of your organization, 

Do all roles have multiple levels for progression? No.

But promotions to justify giving more money may create more problems than it aims to solve.


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