Salary Structure Optimization Using JMP® Scripting


Thor D. Osborn, Yvonne A. Baros, Sandia National Laboratories

Many organizations utilize a pay structure comprising several contiguous and typically overlapping salary bands as a framework for setting staff and management wages. These frameworks enable simplification and stabilization of salary expectations while simultaneously providing linkage to market compensation data. Although a simple geometric progression of salary band midpoints is often assumed, construction of the band structure often involves trial-and-error and piecewise fitting to accommodate realistic data and organizational specialization. A more orderly sequential approach to salary structure development, facilitated by JMP scripting, is presented here.