We’ve heard many variations of one particular question:
“Our organization considers full time hours to be 37 hours weekly or 1924 hours per year. The midpoints are based on 40 hours per week. It confuses my managers sometimes. Is there a way to adjust the midpoints in the system to reflect our 37 hour week?”
The answer to this question lies within the philosophy and purpose of the midpoint.
Your midpoints are very specific numbers. They’re based on salary surveys, compiled specifically for your asset size and industry. They’re then adjusted by your local geographic wage differential to not only reflect the national numbers, but your local market (ie reflect that the market in San Francisco is different from the market in Oklahoma City).
Your midpoints indicate that exactly 50% of incumbents in that salary range are paid higher and 50% are paid lower.
While it is wonderful that your full-time hours are considered 37 hours (or 38 hours, whatever your number may be) you are still competing with the market at large for your talent. Lowering your employees’ midpoints based on this unique weekly philosophy could potentially put you at risk because you would essentially no longer be competing with the market.
We hope this answers your question and explains why we do not have the functionality in our system to lower midpoints based on the number of hours that are considered full-time. If any questions still linger, leave us a comment or give the office a call.