Build a pay structure you can explain, from job levels to salary bands to the pay review
A complete compensation toolkit for HR teams, founders and finance leads: the method, the workbook that turns market data into ranges, the forms, the scripts and the pay review simulator, for one country or several.
- A 10-chapter e-book teaching the whole job in nine steps, with one composite 180-person company worked through every chapter
- The Pay Structure Workbook: 12 Excel sheets with settings, levels, locations, job catalogue, market data ageing and blending, a grade builder, compa-ratios, red and green circles, cost to fix, a group view, an exceptions log and a dashboard
- 4 fillable PDF forms and 7 Word templates, including a reward philosophy, a 13-level levelling guide, 36 messages and scripts, 7 letters, a policy one-pager and 29 AI prompts
- A 9-sheet merit and pay review simulator, a Start Here map, 4 cheat sheets including dated pay law and AI notes by country, a 44-event calendar and a 33-task CSV
The Compensation Structure Builder · Bodhih Pro Kits · 217 by Bodhih Training, trainers to 2,000+ companies since 2008.
How do you build a pay structure?
Agree a reward philosophy, group jobs into families and levels, size them with job evaluation, price benchmark jobs with aged and blended survey data, set midpoints and build ranges with sensible spreads and progression, place employees and cost the fix for anyone outside range, then govern exceptions and run a yearly merit review. The Compensation Structure Builder Kit from Bodhih Training gives you a file for each step.
Want the full free guide first? Read How to Build Salary Bands and a Pay Structure, Step by Step.
You already feel the problem. Here is what it is costing you.
Pay set offer by offer
Every salary was agreed at the moment of hiring, against whatever the candidate asked for. Now two people doing the same job are far apart and nobody can say why.
Titles that mean nothing
Senior, lead and manager have been handed out to win and keep people. Nobody knows what a level is worth, and promotions feel like favours.
Market data you cannot trust
One free website says one number, a survey says another, and neither matches your jobs. Ranges built on that data fall apart at the first challenge.
No idea what fixing it costs
Finance asks what it would take to put pay right. Without ranges, there is no way to say who is underpaid, by how much, or what to do about people paid above the job.
A pay review run on instinct
Managers negotiate increases one by one, the loudest get the most, and the budget is spent before anyone checks differentiation or fairness.
The question managers dread
Someone asks why they are paid less than a colleague. The manager has no structure to explain and no words to answer with.
Picture the next few weeks with the kit open beside you.
Picture the first week. Instead of arguing about one salary, you open the Start Here map, sit down with your CEO and finance lead and work through, in an hour, what you pay for and where you sit against the market. By Friday, the job catalogue has one row per job rather than one per title.
Now it is week six. As you open the Grade Builder, the market data you aged and blended has become nine grades with midpoints, ranges and a flag on the one grade where the market runs ahead. You take that decision to finance with the evidence on one screen, and you write the reason down.
Imagine the day you load salaries. The Employees sheet shows where everyone sits, the two green circles and the two red ones, and the Cost to Fix sheet shows what correcting it costs before and after on-costs, so the phasing conversation with finance starts from real numbers.
And then the pay review. Managers receive worksheets with guidelines from the merit matrix, the simulator checks spend, differentiation and the gender view, and the letters go out with figures that match. Whether you start with the e-book tonight or the philosophy template tomorrow morning, the next pay question has an answer.
21 files that do the work for you
The e-book shows you how. The tools make it happen. Here is exactly what you download.
The Compensation Structure Builder (e-book, PDF)
The guide: methods, worked examples, scripts and exercises
Start here: pay structure map
The whole job as nine steps with the file to open at each, your first hour, a 30/60/90 day use plan and links to measure your starting point.
Pay Structure Workbook
12-sheet workbook: settings and policy, levels, locations, job catalogue with grade checks, market data with ageing and a blended median, grade builder with midpoints, ranges, progression and overlap, employee roster with compa-ratio, range penetration and red and green circles, cost to fix, a group view, an exceptions log and a dashboard with a chart.
Merit and Pay Review Simulator
9-sheet simulator: pay ranges, a merit matrix by rating and compa-ratio band, proposed increases with promotions, market adjustments, lump sums above the maximum and override flags, budget by manager, differentiation by rating, a gender check and a summary with a chart.
Job evaluation scoring sheet
Three-page fillable point-factor scoring sheet: job details, five factors with level descriptors and points, panel scores with evidence, the total and grade by points, and a gender-neutrality check.
Levelling worksheet
Two-page fillable worksheet for placing a role (or a person in a role) at a career level: track, evidence against five levelling dimensions, comparison with peers, the proposed level and the decision.
Pay decision record (exception request)
Two-page fillable record for any pay decision outside the structure or the guideline: what is asked, current and proposed position in range, reasons and evidence, peer comparison, cost, alternatives and approvals.
Pay review manager worksheet
Three-page fillable worksheet for each manager in the annual pay review: team pay positions, guideline and proposed increases with reasons, budget check, promotions and circles, a fairness self-check and the conversation plan.
Total rewards philosophy template
A two-page reward philosophy to adopt: purpose, what we pay for, market position and comparators, pay mix, the five total rewards elements, how pay grows, transparency, fairness and governance, with sample wording in brackets.
Levelling guide template
Editable career levelling guide: 13 levels across Support, Professional and Management tracks, each described on five dimensions, with typical grades, example roles, promotion rules and common mistakes.
Compensation script and message library
36 ready-to-edit emails, messages and spoken scripts in 6 groups: starting the project, job information, launching the structure, hard conversations (red circles, 'why am I paid less than', pay compression), the annual pay review and governance.
Pay structure and pay review letter templates
7 ready-to-edit letters: your grade and range, an adjustment to the minimum, a red circle, an annual increase, a promotion, a lump-sum award and no increase this year.
Compensation policy one-pager
A one-page compensation policy to adopt: scope, structure, setting pay on hire, progression, the annual review, promotions, red and green circles, exceptions and approvals, transparency, fairness checks, AI use and review.
Worked example pack: Brightwater Systems builds a pay structure
The main forms and decisions shown completed for one composite 180-person company: philosophy, levels, a job evaluation, market pricing, the grade build, placing people, the cost to fix, the group view, exceptions, the pay review and a manager worksheet.
AI prompt pack for compensation work
29 tool-agnostic prompts grouped by the 9 stages of building and running a pay structure, each with what to paste in and what to check before you use the output.
Band design decision card
If-this-then-that card for twenty-two band design and pay structure decisions, plus three checks before ranges go live.
Pay structure mistakes to avoid
Twelve pay structure mistakes with what they look like and the file that prevents each, plus eight pay review mistakes.
Compensation formulas and terms quick reference
Fourteen formulas with worked Brightwater examples (compa-ratio, range penetration, spread, progression, overlap, ageing, blending, cost to fix) and fifteen terms in plain words.
Pay laws and AI notes by country (October 2026)
Dated quick reference to equal pay, pay transparency, minimum wage, reporting and AI rules across the EU, UK, US, India, Singapore, Australia, the Philippines, the Gulf and Africa, with what to check.
12-week pay structure build-and-launch calendar
44 calendar events over 12 weeks, from the philosophy workshop to opening the first pay review, each naming the file to open. Import into a new calendar and move to your dates and around public holidays.
Pay structure task board import
33 build-and-launch tasks as a CSV ready to import into Trello, Asana, Notion, Planner or Jira, with phase, week, owner, file to open and due date.
Chapter by chapter
Each chapter opens with a real situation, gives you a method and ends with something to do today, using the tools in your kit.
- Format
- PDF e-book + XLSX + fillable PDF + DOCX + printable PDF + ICS + CSV
- Files
- 21 files plus a one-click ZIP
- E-book
- 60 pages
- Workbooks
- 12-sheet pay structure workbook and 9-sheet pay review simulator, with sample data, formulas and dashboards
- Works with
- Excel, Google Sheets, LibreOffice, Word, Google Docs, Acrobat Reader, GoodNotes, Google Calendar, Outlook, Apple Calendar, Trello, Asana, Notion, Planner, Jira
- Best for
- Organisations of roughly 30 to 2,000 people building or redesigning base pay, in any country and currency
The Pay Question Nobody Could Answer
Why pay set offer by offer stops working, what a pay structure does, and the nine-step method on one page.
Reward Strategy and a Written Total Rewards Philosophy
A written total rewards philosophy: what you pay for, market position, comparators, pay mix and the five elements of total rewards.
Job Architecture: Families, Tracks and Levels
Job families, three career tracks and thirteen levels, with a dual ladder so experts can grow as far as managers.
Job Evaluation: Sizing Jobs Fairly
Ranking, classification and point-factor job evaluation compared, with a simple five-factor plan and gender-neutrality checks.
Market Pricing: Surveys, Matches, Ageing and Blending
Choosing surveys, matching jobs on content, ageing data to one date, blending sources and where free salary data misleads.
Building Grades and Salary Ranges
Midpoints, range spread, midpoint progression, overlap and the choice between narrow grades, broad bands and job families.
Placing People: Compa-Ratio, Circles and the Cost to Fix
Compa-ratio, range penetration, red and green circles, and a costed, phased plan to fix pay that sits outside the ranges.
Paying for Skills and Contribution
Moving pay through a range for proficiency, skills and contribution, without letting ratings drive everything.
The Annual Pay Review
Budgets, the merit matrix, promotions, market adjustments, calibration and a pay review calendar, worked through in the simulator.
Geographic Pay, Remote Work and Variable Pay Basics
Pay markets and location zones, remote workers, and variable pay basics: eligibility, targets, pools and plan documents.
Governance, Communication and AI
The policy, approval rules and exceptions log, a yearly group view, communicating the structure and where AI helps but must not decide.
The Structure You Now Own
What you now have, the three habits that matter most, and your first hour.
Compensation Formulas, Worked
Every formula in the kit worked with Brightwater's numbers.
Using AI in Compensation Work Safely
Six rules for using AI in reward work safely, and a checklist before relying on any output.
Not just reading. Tools you will actually open again.
E-book
- The Compensation Structure Builder: 10 chapters, 2 appendices and 6 hand-drawn figures (PDF)
Start here
- 00-Start-Here-Pay-Structure-Map: the job as nine steps with the file to open at each, your first hour and a 30/60/90 day use plan
Spreadsheets
- Pay Structure Workbook (12 sheets): Start here, Settings, Levels, Locations, Job Catalogue, Market Data, Grade Builder, Employees, Cost to Fix, Group View, Exceptions Log and a Dashboard with 22 live measures and a chart of where people sit in their ranges
- Merit and Pay Review Simulator (9 sheets): pay ranges, a merit matrix by rating and compa-ratio band, increases with promotions, market adjustments and lump sums, budget by manager, differentiation by rating, a gender check and a summary
Fillable PDF forms
- Job evaluation scoring sheet: five-factor point plan, panel scores with evidence, grade by points and gender-neutrality checks
- Levelling worksheet: track, evidence on five dimensions, peer comparison and decision
- Pay decision record (exception request): position in range, reasons, peer comparison, cost, alternatives and approvals
- Pay review manager worksheet: team proposals against the guideline, promotions, circles, a fairness self-check and the conversation plan
Word templates
- Total rewards philosophy template: what you pay for, market position, pay mix, total rewards, progression, transparency and governance
- Levelling guide template: 13 levels across Support, Professional and Management tracks on five dimensions
- Compensation script and message library: 36 emails, messages and spoken scripts, including red circles and 'why am I paid less than'
- Pay structure and pay review letter templates: 7 letters
- Compensation policy one-pager your organisation can adopt
- Worked example pack: Brightwater Systems' structure and first pay review shown in full
- AI prompt pack for compensation work: 29 prompts, each with what to paste in and what to check
Cheat sheets
- Band design decision card: twenty-two if-this-then-that decisions and three checks before ranges go live
- Pay structure mistakes to avoid: twelve structure mistakes and eight pay review mistakes
- Compensation formulas and terms quick reference: fourteen formulas with worked examples and fifteen terms
- Pay laws and AI notes by country, dated October 2026
Calendar and import
- 12-week build-and-launch calendar (ICS): 44 events for Google Calendar, Outlook or Apple Calendar
- Pay structure task board import (CSV): 33 tasks for Trello, Asana, Notion, Planner or Jira
When you have worked through it, you will be able to…
Every outcome is practised with a worked example and a tool, not just described.
- Write a reward philosophy ready for your leaders to sign and simple enough for managers to explain
- Build a job architecture of families, tracks and levels, and size jobs with point-factor job evaluation
- Price benchmark jobs with aged, blended market data and spot sources that mislead
- Set midpoints and build salary ranges with sensible spread, progression and overlap
- Calculate compa-ratio and range penetration, find red and green circles and cost a phased fix
- Run an annual pay review with a merit matrix that fits the budget and checks fairness
- Govern exceptions with clear approvals and an audit trail
- Explain the structure to managers and employees, including the hard questions
Know your starting point. Prove your progress.
People who measure before and after improve faster and can show it. AssessAll, our sister assessment platform, has AI-graded assessments that pair with this kit. Take one now, work through the kit, then re-take it.
Pay and Reward Decision Assessment for Managers and HR Teams
Take the assessment →AssessAll assessmentPeople & Performance Data Judgment
Take the assessment →AssessAll assessmentApplied Business Mathematics
Take the assessment →JobularyTurn what you learn into a measured development plan (Jobulary)
Make it a growth plan →A taste of Chapter 6
A green circle is someone paid below the minimum of their range. A red circle is someone paid above the maximum. The names come from the old practice of circling those salaries on a printed list, and both need a decision. Green circles are usually the cheaper and more urgent problem. The person is paid less than the job is worth on your own definition, and the gap tends to grow because annual increases are a percentage of a low base. Bring them to the minimum, and phase it only if the bill is large. Red circles need care. Cutting someone's pay because a new structure says so destroys trust and may breach their contract. The usual approach is to freeze base pay and pay any merit award as a one-off lump sum until the range catches up, or until the person moves to a bigger job.
The honest comparison
| Free templates and typical advice | This kit | |
|---|---|---|
| Philosophy | Ranges built first, principles argued later | A two-page reward philosophy agreed before any range |
| Job sizing | Titles and gut feel | Levels on five dimensions and a point-factor scoring sheet with panel rules |
| Market data | One free salary site | Up to three sources, aged to one date, weighted and flagged when they disagree |
| Ranges | A template with blank grades | A grade builder that turns midpoints and spreads into ranges and flags progression, overlap and legal floors |
| People | Not placed, or placed by hand | Compa-ratio, range penetration, red and green circles and a costed fix in two scenarios |
| Pay review | Same percentage for everyone, or negotiation | A merit matrix by rating and compa-ratio with budget by manager and a gender check |
| Countries and AI | Assumes one country; AI not mentioned | One structure per pay market, location zones, dated law notes for many markets and clear rules for AI |
Made for you if…
- HR generalists and HR business partners asked to bring order to pay
- Reward and people-ops teams in small and mid-size organisations building or redesigning a structure
- Founders and finance leads who own pay decisions and want ranges they can afford and explain
- Organisations paying people in several countries or locations, including remote staff
- HR teams preparing for pay transparency rules and equal pay checks
- Managers who make pay proposals and want a clear, fair method
Probably not for you if…
- Anyone looking for legal or tax advice: the kit teaches good practice and points you to your HR team, company policy and local law, with country notes dated October 2026
- Teams that need compensation software: the workbooks run alongside your HR and payroll systems, they do not replace them
- Readers wanting a broad set of HR templates on many topics: The People-Ops Starter Kit covers that ground; this kit goes deep on pay structure
Built by trainers, tested in real rooms.
Bodhih Training has designed and delivered corporate programmes since 2008. Bodhih Pro Kits package what works in those workshops into a guide plus the exact tools we use, so you can apply it the same day without a facilitator in the room.
From here to using it in three steps
- STEP 1
Tap Get the kit
Name, email and country. UPI, card or netbanking in India; international cards everywhere else. No account to create.
- STEP 2
Download instantly
Your download page opens at once, with every file and a one-click ZIP. A permanent link lands in your inbox too.
- STEP 3
Open the first tool
Start with the quick-start chapter, then the main spreadsheet or planner. Most buyers use something from the kit the same day.
The next pay question is coming. Have a structure ready to answer it.
Open the Start Here map, type your settings into the workbook and book an hour with your CEO and finance lead. Whether you begin with the e-book this evening or the philosophy template tomorrow, your first hour is already planned.
Personal licence for the buyer's own use (and use with your own team or clients where the kit says so). Please don't share or resell the files. Team and company licences: solutions@bodhih.com.
What buyers say
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The Bodhih family, when you are ready for more
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AssessAll
250+ AI-graded assessments to measure skills and earn verified credentials.
Jobulary
Individual development plans that start from evidence and stay yours.
Bodhih Training
Run this topic as a live workshop for your team, in person or online.
Pewple
Book a vetted coach for career, leadership or communication. Pay per session.
Bodhih.org pathways
Certification pathways in Applied AI, Workplace English and management.
The Compensation Structure Builder: FAQs
Read the free guideAlready bought? Resend my linkHow do I build salary bands from market data?
Match your benchmark jobs to survey jobs on content and level, age each figure to the date your ranges start, blend the sources with weights, and apply your market position. Average the results for the jobs in each grade, choose a smooth line of midpoints, then set each range from the midpoint and your chosen spread. The workbook does each calculation and flags weak data.
What is a compa-ratio and what is a good one?
Compa-ratio is salary divided by the range midpoint. A fully proficient person in a job for a few years often sits around 1.00; people new to a job usually sit lower. A long-serving strong performer well below 0.90, or anyone below the minimum, is worth a closer look.
What should we do with people paid above the maximum?
Do not cut their pay. The usual approach is to keep base pay where it is and pay any merit award as a one-off lump sum until the range catches up or the person moves to a bigger job. The kit includes the script, the letter and the simulator logic.
Which job evaluation method should a small company use?
Ranking is quick for very small teams; classification works when levels are clear; point-factor gives a reason for every score and suits mixed organisations and equal value comparisons. The kit includes a simple original point-factor scoring sheet and explains how proprietary systems differ.
How do I run an annual pay review fairly?
Set separate merit, promotion and market adjustment budgets, use a merit matrix by performance rating and compa-ratio, ask managers for reasons when they depart from the guideline, calibrate spend and differentiation across managers, check outcomes by gender, and write letters only after approval.
Can we use AI for compensation work?
AI can clean benchmark data, spot anomalies, explain formulas and draft communications, using approved tools and anonymised data. It must not decide anyone's grade, pay or increase. A person decides and can explain it. The kit's prompt pack and dated law notes cover both sides.
How do I measure my starting point in pay decisions?
AssessAll offers assessments that match this kit: the Pay and Reward Decision Assessment for Managers and HR Teams, People & Performance Data Judgment, and Applied Business Mathematics. Take one before you build your structure and again after the first pay review. Links are on the Start Here map; they are separate products, not included in the kit.
How do I turn this into a development plan for my reward skills?
Pick two or three capabilities from the kit, such as market pricing or running a pay calibration, and set them out as a plan with actions and dates. Jobulary explains how its individual development plans work, and the link is on the Start Here map.
Is this legal advice for my country?
No. The kit is educational and teaches good practice; it is not legal or tax advice. Country specifics are kept in one cheat sheet dated October 2026, covering the EU, UK, US, India, Singapore, Australia, the Philippines, the Gulf and Africa. Check your HR team, company policy and local law before acting.
Which software do I need?
The workbooks open in Excel, Google Sheets or LibreOffice and use no macros. The forms are fillable in Acrobat Reader and most PDF apps, the templates open in Word or Google Docs, the calendar imports into Google Calendar, Outlook or Apple Calendar, and the CSV imports into Trello, Asana, Notion, Planner or Jira.
How much does The Compensation Structure Builder cost?
₹1,299 including 18% GST for buyers in India, or $34 for buyers outside India. One-time payment, no subscription, with an automatic invoice.
How do I get the files after paying?
Instantly. Your download page opens the moment payment succeeds, and a permanent download link is emailed to you. Download each file separately or everything in one ZIP.
What software do I need?
Any of the usual tools: Excel or Google Sheets for spreadsheets, Word or Google Docs for templates, Adobe Acrobat Reader, Preview, Xodo or GoodNotes for the fillable PDFs, and Google, Outlook or Apple Calendar for the calendar plan.
Can I get a refund?
Because it is a digital download, kits are not refundable once downloaded. We always refund a duplicate charge or a failed delivery, and if a file is corrupted and we cannot fix it within 3 working days. Full terms: bodhih.org/refunds.
Can my company buy this for a team?
Yes. Team and company licences, and workshops on this topic run by Bodhih Training, are available. Write to solutions@bodhih.com or call +91 99000 11601.
