6. Establish grade pricing and salary range.

• Establish benchmark (key) jobs.
• Review the market price of benchmark jobs within the industry.
• Establish a trend line in accordance with company philosophy (i.e., where the company wants to be in relation to salary ranges in the industry).

7. Determine an appropriate salary structure.

• Verify the purpose, necessity, or other reasons for maintaining a position.
• Meet with the compensation committee for review, adjustments, and approval.

8. Develop a salary administration policy.

• Develop and document a strategy for merit raises and other pay increases, such as cost-ofliving adjustments, bonuses, annual reviews, and promotions.
• Develop and document procedures to justify the policy (e.g., performance appraisal forms, a merit raise schedule).

9. Obtain top executives' approval of the basic salary program.

• Present data to the compensation committee for review, adjustment, and approval.
• Present data to the executive operating committee (senior managers and officers) for review and approval.

10. Communicate the final program to employees and managers.

• Develop a plan for communicating the new program to employees, using slide shows or movies, literature, handouts, etc.
• Make presentations to managers and employees. Implement the program.
• Design and develop detailed systems, procedures, and forms.

11. Monitor the program.

• Monitor feedback from managers.
• Make changes where necessary, find problems in the program and adjust where necessary.