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External hires needed to have market-based pay structures. This gave birth to our market-pricing project, said Graebner. First, JC Penney had to select which surveys to use. For positions up to the management level, broad general-industry surveys were sufficient. Above that level, retail-specific salary surveys were more useful. Comparing Job Titles In taking a look at market data for the retail industry, it became clear that the company needed to figure out how to compare itself to other organizations in the surveys. It also became clear that the company could not simply rely on job titles from market surveys. Many organizations have a position with the same title, but the responsibilities and scope of the actual job can vary greatly. To remedy the situation, JC Penney added evaluations to the process. Job evaluation combined with market data to give us much better information. And that is what CEOs want, that is what line executives want, said Seaweard. Tying in job evaluations allowed the company to link the value of work to the market. This made it easier to communicate to people what they needed to do in their jobs to obtain a raise. We want people to understand what creates value, said Seaweard. When using a salary survey, you need to understand the content of your jobs, as well as the survey models to get the best market data, said Seaweard. We ended up matching our buyer s job to the higher level of the data. We realized the content of the Penney s jobs is bigger than the data s, so we ve got to reflect that accordingly. With a group of compensation-related jobs such as compensation director or vice president of compensation and benefits the approach was similar but slightly different. In one salary survey used by JC Penney, the compensation manager range is $50,000 to $100,000. So what is the right amount How big is your job asked Seaweard. He gave an example of two compensation managers, both at billion-dollar companies. The first one administers the annual merit budget, the annual incentive plan, and market pricing and supervises a couple of analysts. But overall, HR is not a big player in the organization, said Seaweard. The other HR does all of that too, but the department works closely in designing sales plans, works with boards, line managers, etc. So those jobs aren t the same and wouldn t be paid the same. In looking at surveys, the organization then matched job titles and job content to comparable data other companies that were of similar size and scope. JC Penney targeted the 50th percentile of the pay ranges for each job. Career Bands The jobs were then grouped by relative impact to the organization to create career bands, each with a maximum and minimum pay range. This reduced the number of titles while still maintaining logical career paths for employees. 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