Compensation

We use ranges to communicate to employees how their job fits into the larger picture at Simmons, and how their pay compares to the total range of pay for similar jobs here.

By “similar jobs” we mean jobs with the same level of know-how, problem solving, independent judgment, complexity and content. These are the factors we use to compare jobs, along with market data to determine or confirm job grades.

Simmons creates salary ranges through the use of compensation surveys of academic institutions and industry. A distinct salary range has been determined for each job grade within Simmons and includes the following components:

• The range minimum is the minimum salary that should be paid for a candidate with the minimum level of skills as articulated in the job description.
• The midpoint is halfway between the range minimum and maximum.
• The range maximum is the maximum that should be paid for a position within the salary grade.

Market data is used to verify that a job grade is correct for a particular job description. We compare the median salary for the job per the market and midpoint of the job grade to determine the appropriate grade.

We do not use a person’s salary because the grade is assigned to a job, not a person. For example, if the market data for a job at the median is $51,300 and that position is at a job grade S5, then the market data confirms that it is the correct grade because the midpoint for grade S5 is $51,300.

When we used market data to verify job grades, we saw that in about one third of our positions, the grade had to be adjusted either up or down. Please note the following:

• The adjustments are neither demotions nor promotions.
• The job grades when verified by market data was something other than what we had.
• Making these adjustments is a best practice to make sure our ranges accurately reflect the market.
• The adjustments do not change anyone’s salary. If an employee is at or above the maximum of the range, this may affect future salary increases.