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How to defend a salary scale before the board of directors.

The salary conversation is won with method, not with arguments. What a proposal must contain for the board to approve it.

Author: Human Resources PracticePublished: Reading time: 7 min

Most salary proposals are rejected for the same reason: they arrive without evidence. A comparison table with three well-known companies is not a market study, and the board spots it immediately.

A solid proposal starts from job evaluation. Before talking about money you have to establish the relative value of each position within the organization, with a documented point-factor methodology. This answers the question that always comes up: why this position should earn more than that one.

The second component is the external comparison. The source, date, sector, size of the companies compared and the reference percentile must be stated. Without those data points, the figure is not defensible.

The third is the financial scenario. No board approves closing a gap without knowing the impact on total payroll cost, including statutory benefits. We recommend always presenting three scenarios: immediate closure, staged over 12 months, and prioritized by criticality of the role.

Finally, the policy. A scale without an administration policy is out of date within a year. It must define who approves movements, on what criteria and how often the structure is reviewed.

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