III. UNDER MINIMUM $/$ OVER MAXIMUM SALARIES

Your organization is about to implement a new compensation program that includes salary ranges. All jobs have been evaluated and assigned to a salary range. After reviewing all salary positions within the respective new ranges for each employee, it is noted a large number $(30\%)$ of employee salaries fall below the salary range minimum and $10\%$ are over the salary range maximum. Regarding the below minimum salaries, it will cost the company $$750,000$ to bring all the salaries to minimum not taking into consideration time in job, years of experience, performance, etc. The adjustment total is significantly over what the salary budget can sustain for the year. At the same time, about $60\%$ of the over maximum salaries are held by consistently high$-$performance achievers.

$1.$ How would you address both situations prior to implementation? What actions would you take or would you decide to do nothing? Explain.

$2.$ What guidelines $/$ practices would you put in place?

Think of solutions that promote a common compensation philosophy of maintaining internal equity while remaining competitive with the market.

what is the Response?