netrashetty
Netra Shetty
New Balance Athletic Shoe, Inc. (NBAS), best known as simply New Balance, is a footwear manufacturer based in Boston, Massachusetts. It was founded in 1906 as the New Balance Arch Support Company. Eschewing expensive advertising campaigns, it has nevertheless grown to be one of the largest makers of sports footwear in the world.
New Balance is notable in that it has continued to maintain a manufacturing presence in the United States as well as in the United Kingdom for the European market—in contrast to its competitors in the same market space, such as Nike and Adidas, who design products in the US and Europe, but purchase the majority of their Footwear and Apparel from manufacturers in China, Vietnam, and other developing nations. The result of this corporate decision is that the shoes tend to be more expensive than New Balance's competitors. To offset this pricing discrepancy, New Balance differentiates their products with technical innovations , such as a blend of gel inserts, heel counters, and a greater selection of sizes, particularly for very narrow and/or very wide widths.
The former State Compensation Plan was a graded salary plan
consisting of 23 pay grades with a 56% range spread between the minimum and
maximum of each grade. Within each pay grade were 21 fixed pay steps that
increased in a uniform percentage of 2.25%. Each of the 1,650 job
classifications was assigned to specific pay grade.
Pay Bands
The new Salary Structure in the Compensation Management System
consists of 9 pay bands. The first eight bands have a range spread of
approximately 105% between the minimum and maximum salaries. There is a
30.6% difference between the minimum salary in each pay band except
between pay band 2 and 3. The pay bands are “stepless”; that is there are no
incremental steps within the band. The 9th pay band specifically addresses
Mental Health physicians that serve as either Facility Directors or Medical
Directors. The maximum salary of the 9 th pay band is based on the market for
these positions.
The transition from a graded salary plan to the pay band structure is
the result of a comprehensive analysis of the class specifications and a review
of best practices adopted by other public and private organizations with similar
pay banding structures and alternative pay practices. The review included an
in-depth analysis and grouping of the classifications that had similar duties and
responsibilities, as well as knowledge, skills, abilities and qualifications.
Based on this review, the most logical grouping across various
occupational areas resulted in the consolidation of 3 former pay grades into
each pay band with the exception of pay band 2 that only grouped 2 former
pay grades (4 and 5). An additional 10% (with the exception of pay band 2
which was increased by 20%) was added to the maximum salary of each pay
grade resulting in approximately 105% range spread for each new pay bands.
The Salary Structure Conversion
Competitive Differentials
A Competitive Differential is an extension to the maximum salary in
an existing pay band and is used for select jobs based on local market
conditions. Competitive Differentials allow agencies to pay higher salaries
where justified. The Department of Human Resource Management (DHRM)
must approve Competitive Differentials. Competitive Differentials may
apply to specific positions, Roles, Standard Occupational Classifications
(SOC Codes), locations, and/or pay areas within any agency.
• Northern Virginia Differentials
Northern Virginia Differentials vary from 9% to 30% based on
market data. They are applied in much the same way as Competitive
Differentials . However, they are not agency specific. Rather, they are
available to all agencies with positions in northern Virginia. For this
reason, separate pay band ranges are maintained on PMIS for the northern
Virginia (FP) pay area.
Sub-Bands
A Sub-Band is an identified segment of an existing pay band with a
specified minimum and maximum salary within that pay band. In some
situations agencies may establish Sub-Bands to manage employees’ salaries
within their pay bands. Sub-Bands are not intended for application to most
employees. Law enforcement ranks are an example of where using Sub-Bands
may be appropriate.
JOB EVALUATION METHODOLOGY
The Compensation Management System will retain the position
classification method, or whole job approach, of job evaluation to allocate
positions into Roles. Previously, job evaluation was based on seven
compensable factors which were complexity of work, supervision exercised,
supervision received, scope, impact of action, personal contact; and knowledge,
skills and abilities. The new Compensation Management System uses three
compensable factors, complexity of work, results and accountability, for job
evaluation purposes.
The position classification method will determine the internal value of a
job (or Role) by comparing the job to the newly developed Career Group
Descriptions and to other jobs or Roles within the organization. By assigning
jobs to a broader Role, job evaluation should be more understandable to
employees and managers and less cumbersome to administer. Additionally,
external salary data will be available to help insure the jobs are properly aligned
with the market.
The broader Roles also allow agencies to develop additional job
evaluation dimensions to support their agencies’ unique needs. Alternative
approaches to determine job worth may include skill- or competency-based
systems, rank structures, and occupational requirements such as professional
licensing or certification.
New Balance is notable in that it has continued to maintain a manufacturing presence in the United States as well as in the United Kingdom for the European market—in contrast to its competitors in the same market space, such as Nike and Adidas, who design products in the US and Europe, but purchase the majority of their Footwear and Apparel from manufacturers in China, Vietnam, and other developing nations. The result of this corporate decision is that the shoes tend to be more expensive than New Balance's competitors. To offset this pricing discrepancy, New Balance differentiates their products with technical innovations , such as a blend of gel inserts, heel counters, and a greater selection of sizes, particularly for very narrow and/or very wide widths.
The former State Compensation Plan was a graded salary plan
consisting of 23 pay grades with a 56% range spread between the minimum and
maximum of each grade. Within each pay grade were 21 fixed pay steps that
increased in a uniform percentage of 2.25%. Each of the 1,650 job
classifications was assigned to specific pay grade.
Pay Bands
The new Salary Structure in the Compensation Management System
consists of 9 pay bands. The first eight bands have a range spread of
approximately 105% between the minimum and maximum salaries. There is a
30.6% difference between the minimum salary in each pay band except
between pay band 2 and 3. The pay bands are “stepless”; that is there are no
incremental steps within the band. The 9th pay band specifically addresses
Mental Health physicians that serve as either Facility Directors or Medical
Directors. The maximum salary of the 9 th pay band is based on the market for
these positions.
The transition from a graded salary plan to the pay band structure is
the result of a comprehensive analysis of the class specifications and a review
of best practices adopted by other public and private organizations with similar
pay banding structures and alternative pay practices. The review included an
in-depth analysis and grouping of the classifications that had similar duties and
responsibilities, as well as knowledge, skills, abilities and qualifications.
Based on this review, the most logical grouping across various
occupational areas resulted in the consolidation of 3 former pay grades into
each pay band with the exception of pay band 2 that only grouped 2 former
pay grades (4 and 5). An additional 10% (with the exception of pay band 2
which was increased by 20%) was added to the maximum salary of each pay
grade resulting in approximately 105% range spread for each new pay bands.
The Salary Structure Conversion
Competitive Differentials
A Competitive Differential is an extension to the maximum salary in
an existing pay band and is used for select jobs based on local market
conditions. Competitive Differentials allow agencies to pay higher salaries
where justified. The Department of Human Resource Management (DHRM)
must approve Competitive Differentials. Competitive Differentials may
apply to specific positions, Roles, Standard Occupational Classifications
(SOC Codes), locations, and/or pay areas within any agency.
• Northern Virginia Differentials
Northern Virginia Differentials vary from 9% to 30% based on
market data. They are applied in much the same way as Competitive
Differentials . However, they are not agency specific. Rather, they are
available to all agencies with positions in northern Virginia. For this
reason, separate pay band ranges are maintained on PMIS for the northern
Virginia (FP) pay area.
Sub-Bands
A Sub-Band is an identified segment of an existing pay band with a
specified minimum and maximum salary within that pay band. In some
situations agencies may establish Sub-Bands to manage employees’ salaries
within their pay bands. Sub-Bands are not intended for application to most
employees. Law enforcement ranks are an example of where using Sub-Bands
may be appropriate.
JOB EVALUATION METHODOLOGY
The Compensation Management System will retain the position
classification method, or whole job approach, of job evaluation to allocate
positions into Roles. Previously, job evaluation was based on seven
compensable factors which were complexity of work, supervision exercised,
supervision received, scope, impact of action, personal contact; and knowledge,
skills and abilities. The new Compensation Management System uses three
compensable factors, complexity of work, results and accountability, for job
evaluation purposes.
The position classification method will determine the internal value of a
job (or Role) by comparing the job to the newly developed Career Group
Descriptions and to other jobs or Roles within the organization. By assigning
jobs to a broader Role, job evaluation should be more understandable to
employees and managers and less cumbersome to administer. Additionally,
external salary data will be available to help insure the jobs are properly aligned
with the market.
The broader Roles also allow agencies to develop additional job
evaluation dimensions to support their agencies’ unique needs. Alternative
approaches to determine job worth may include skill- or competency-based
systems, rank structures, and occupational requirements such as professional
licensing or certification.
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