How To Build A Salary Structure Using Excel: A Beginners Guide

Learn how to build a salary structure using excel. A Salary Structure (or Pay Structure) is a hierarchal group of jobs and salary ranges within an organization. #SalaryStructure #PayStructure
📌Download the excel practice file here - segunakiode.com/ytresources
⏰Timestamps
0:00​ - Intro
0:20​ - What is A Pay Structure?
1:23​ - Practical Case Study in Excel
7:37 - Recap & Questions
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[@segunakiode]

📌Remember to drop your comment and to subscribe to my channel for more videos. 😀 📌Download the excel practice file here - segunakiode.com/ytresources

[@rotlij]

Nice video! Thanks for sharing, Segun!

[@segunakiode]

@Rotimi Lijofi Thanks!

[@ifeanyiohaka8097]

Pls I'm still waiting for your email address

[@segunakiode]

@@ifeanyiohaka8097 how do you mean?

[@ifeanyiohaka8097]

What I mean is, I wanted to have a chat with you privately so that I can let information from you at ease

[@md.a.kaiumkhandaker5733]

Hello this is Abdul kaium from Bangladesh. I am a HR professional. Looking at all your videos, I like it very much. Thank you so much for your nice video.

[@segunakiode]

Hello Abdul Kaium, nice to e-meet you. I am glad my videos have been valuable to you. 🙂

[@md.a.kaiumkhandaker5733]

@@segunakiode I have been watching various KZbin tutorials to learning the pay grading system for quite some time now. After watching this episode, Everything is very easy to understand Thanks for your important episode

[@kehindeolugbemi9877]

Segsman, you nailed it. Enlightening. you broke it down to a lay man's understanding. You a da best.

[@segunakiode]

@Kehinde Olugbemi - thank you for your kind words. 🙂

[@simisolaolu6053]

Exact thoughts after watching! If they was such thing as DIY in HR, you will be the perfect coach!

[@ximinia1042]

Thank you for this detailed explanation and for the template! You are the best!!!

[@segunakiode]

@Ximinia - I am glad to know the video was valuable and thank you for your kind words.

[@anirtak07]

This was so helpful. Thank you!

[@segunakiode]

Glad it was helpful!

[@beingZeeky]

Thank you for making this video. I would build on this as I go.

[@segunakiode]

@Zeeky Zwart - I am glad the video was valuable.

[@godstimeehikioya1199]

Thank you so much for all the wonderful resources you share with your viewers here. May God bless your efforts richly. Kind regards.

[@segunakiode]

So nice of you. Thanks.

[@marienowiepereja8671]

This is reallyyy helpful 🥰 Thank you so much for the input as I'm about to make the same report tomorrow 🙏

[@segunakiode]

I am glad to know this was timely and valuable to you.

[@msall21]

Thank you Sir!

[@segunakiode]

You are welcome!

[@ofeibeaasante6666]

So clear and practicable.

[@segunakiode]

Thanks!

[@ofeibeaasante6666]

@@segunakiode Hello, is it possible to have your email?

[@ifeanyiohaka8097]

great one

[@segunakiode]

Thanks!

[@MsEMK2012]

Sir, thank you for the video. It has been very helpful. What are some of the factors to consider when setting the midpoint progression and the pay range spread?

[@segunakiode]

The mid-point progression and pay range spread are both pay structure design consideration. It will differ on the job grades and how long each employee will spend on each job grade.

[@batondafea3733]

Thank you from Congo Brazzaville

[@segunakiode]

Thank you too!

[@shealinglim9041]

Hi, thanks for this great video! Btw, how did you get the Salary Structure Design Chart? What chart type is this?

[@segunakiode]

I made them using a Floating Bar Charts in Excel.

[@gabrielolusesi381]

Thanks Mr Segun Akiode for the explanations. Sir My question is are your videos available for sale?

[@segunakiode]

@Gabriel Olusesi - thanks. Kindly clarify what you mean by "are your videos available for sale"?

[@gabrielolusesi9204]

I want buy some of your video or ebooks on payroll management. This is the reason why I posted that question. Thanks in anticipation

[@segunakiode]

@@gabrielolusesi9204 you access my Payroll Management Course here - crescitahcl.com/academy/course/payroll-management-course/

[@chidinmahelen5201]

Thanks a lot sir for the insight. My question: is it compulsory to use the same mid point progression for the grade

[@segunakiode]

@Chidinma Helen - the mid progression can vary for each pay grade. It is part of the pay structure design decision to be made.

[@chidinmahelen5201]

@@segunakiode Thank you Sir

[@hamzamohammed9311]

Very rich

[@ma.jardishamarcellana1511]

Is there a prescribed midpoint progression percentage and per range spread percentage? How do we know that the percentage is too much or too less?

[@segunakiode]

There is no prescribed midpoint progression as it is dependent on the peculiar situation of the organization.

[@chidiky8]

Hi Segun, can I reduce the spread across the banding or 75% best practise?

[@segunakiode]

@Chidiky8 - the range spread is not cast in stone. You are free to use a suitable value for it.

[@rachelrodrigues8420]

Hi Segun, can you explain what Pay Range Spread means ?

[@segunakiode]

@Rachel Rodrigues - Pay Range Spread is the distance between the pay minimum and pay maximum. It is usually expressed as a percentage. For example, a pay range spread of 50% means the distance between pay minimum and pay maximum is 50%. Hope my explanation is clear?

[@rachelrodrigues8420]

@@segunakiode yes all clear, thank you!

[@segunakiode]

@@rachelrodrigues8420 awesome! 🙂

[@julianabentil5505]

Hello Segun, what happens to employees who are above the Maximum of the salary structure?

[@segunakiode]

@Juliana Bentil - the whole idea is not to have employees above your maximum salary structure. If they exist they you have to rethink why and if such employees should be on a new grade level completely or you may need to redesign your entire salary structure. Hope this helps?

[@julianabentil5505]

@@segunakiode there was no existing salary structure. One was just developed and after we identified most employees are above the structure. Now per what I know when an organisation does cost of living increases automatically the salary structure also receives an increase. In this case when does salary increases are those above the maximum supposed to get increases too or there's a way to go about it. How do treat such employees if they're already above the maximum ?

[@segunakiode]

@@julianabentil5505 that is an issue. If there was no salary structure and it was created, every employee’s salary should be within the new salary structure created. That is the whole point of creating a new salary structure. To your other question, if cost of living adjustment due to inflation is applied on employee’s salary, then the whole salary structure should be adjusted to accommodate the increase. If not, there would be an anomaly later.

[@julianabentil5505]

@@segunakiode thank you

[@AskREO.]

What do you mean by mid point of lowest grade sir

[@LisaWest-cb4mc]

how did you get the 75% pay range spread

[@segunakiode]

It was an assumed figure as part of the pay structure design consideration. It is not cast in stone.

[@siddeshkute5393]

Can midpoint progression be different for each grade?

[@segunakiode]

Yes, it can be.

[@shwetakhisty5641]

Hi I had a question. I already have a salary ranges for higher level. How do you calculate salary below the salary range For eg min 40000 mid 50000 max 60000 How to create a salary range below this salary range

[@segunakiode]

You can used the content of this video to extrapolate your answer.

[@mulatreda4004]

How do you calculate pay ragespread

[@segunakiode]

The formula is: Pay Range Spread = (Maximum pay - Minimum pay) / Minimum pay

[@awolusiolamilekan4672]

How to calculate overtime?

[@segunakiode]

@Awolusi Olamilekan - how to calculate overtime pay differ from organization to organization. However, the general computation of overtime pay is to multiple the employee’s regular hourly rate by an overtime factor (which varies). Hope this helps?

[@snehavijayan7246]

Hi Segun, I need to create a salary structure for my company and found this useful. So can you please share your mail Id so I can connect you?

[@segunakiode]

@Sneha Vijayan - I am glad the video was valuable to you. 🙂

[@johnkanyambo7712]

How can I get ur contact Mr Segun