Market Pricing Broad Band Compensation System
Effective on November 15, 2008, Boston College will complete the transition from a salary grade compensation system to a market pricing broad band compensation system for office/clerical, technical and professional/administrative positions. Hourly Dining Services, Security and union positions will not be affected by this system.
The market pricing broad band compensation system provides a simplified and flatter structure that can more readily accommodate frequent organizational and job/role changes and employee skill growth, characteristic of today's workplace. It places greater emphasis on competitiveness with the external market and allows us to align our pay practices more precisely with the market at the individual position level.
Broad banding involves the use of “bands” that serve to represent, in a general way, each job's position within an overall organizational hierarchy. Our broad band structure incorporates both exempt and nonexempt positions and is comprised of just four bands, each defined by position scope, impact, complexity and level of knowledge, skill and experience required. The bands, per se, do not have salary values assigned to them, nor do they influence MRPs for positions or salary levels for employees.
Salary levels for positions are established by a process called “market pricing”. Each position is assigned a “Market Reference Point” (MRP) based on the average actual paid salary in the external labor market according to salary survey data or, if benchmark data is not available, on comparisons with benchmarked positions. Each MRP has a salary range associated with it comprised of a "hard" minimum, meaning that no employee will be paid below it, and a maximum.
The MRP represents the salary level of an employee who has attained complete mastery of the position requirements to the extent that he/she can fully execute all of the essential job functions of the position. The MRP presumes that the employee has acquired all of the requisite job knowledge, skills and abilities and, importantly, has demonstrated these over some specified period of time. An employee’s salary within the MRP range is dependent on his/her qualifications, including years of related experience, performance and internal salary equity considerations and may be at, above or below the MRP. As with the old salary grades, there is overlap among MRP ranges.