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Pay Structure (pay grade & range (actual pay depends on qualifications…
Pay Structure
pay grade & range
actual pay depends on qualifications, accomplishments & experience
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Development Issues
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Economic Market
Pressures
Product market- ability to sell products/services at lower costs than competitors, places an upper limit on pay offers.
Labor market- decides minimum organisation must pay
bench-marking with pay surveys for industry or specific jobs
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Pay policy line
vertical axis- range of pay rates
horizontal axis- job evaluation points
if job structure and market data conflict, consider importance of position to organisational goals. Important= pay higher rate
Skill-based pay system
empower employees and enrich jobs by encouraging knowledge expansion/learning new skills. Need to provide ways for employees to use new skills/knowledge.
hard to keep track and find market data on the system
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HR compare actual pay to pay structure using compa-ratio (average pay to the midpoint of pay range) should be close to 1.0.