To assure internal equity pay opportunities and to maintain your desired external competitive level, Quorum typically recommends base salary ranges appropriate for each job grade. This step is best taken after completing a Base Compensation Study, addressing the issues identified, developing a formal compensation philosophy.

The Salary Administration program will provide you with a competitive salary structure for all positions. Each grade will be assigned an appropriate base Salary Range (or opportunity) that reflects:

• The overall philosophy of the organization;
• The pay philosophy and the mix of other compensation elements such as bonuses, incentives, and benefits;
• The position's value to the organization;
• The competitive market for a specific position or skill; and
• The organization's ability to pay.

These Salary Ranges represent the pay opportunity for each position and have a Minimum and a Maximum established around a Midpoint. Theoretically, new employees (and marginal performers) would be paid around the Minimum of the Salary Range and have ample room for merit increases based upon individual performance. Competent performers would be paid around the Midpoint of the Salary Range after a period of time. Distinguished employees would be paid toward the Maximum of the Salary Range after a period of time.

Quorum can help develop a formal Salary Administration Program which will address and correct most of the problems encountered by an informal, unstructured approach to base salaries.