Salary bands are established based on competitive pay practices and are designed to establish the range of salaries that will be paid for respective jobs within the bands. Rewards and Recognition within Duke Human Resources annually evaluates the external pay rates of benchmark jobs through surveys in order to establish competitive rates of pay. The bands are reviewed for appropriateness and revised to meet the objective of remaining competitive within the market. Compensation trends in the market and external economic factors – such as the Consumer Price Index and unemployment rate – as well as internal economic factors (such as the ability to pay) are also taken into consideration when establishing annual salary and structure recommendations.
Duke University Health System maintains a salary structure that consists of 13 pay bands. There is a 100 percent spread between the minimum and maximum of each pay band. A "market target" is defined as what the market would pay for a fully competent, experienced individual for a particular type of job. This is also known as the "market median."
Each pay band has three market targets. Every job within a band is assigned into one of the three targets and is based on specific work requirements and the knowledge, skill, and competency differences needed to execute the work. Each market target has a range of competitiveness defined as 80 percent below the market target and 120 percent above the market target. Generally, this range of competitiveness is similar to the traditional salary range minimum and maximum.