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Wage analysis is the process of comparing the salaries of your employees to industry and organization standards. The salaries used for wage analysis are associated with job codes. You use either salary ranges or grade range schedules to perform wage analysis.
Essentially, wages is the money you work for, while earnings include the money you don't directly work for. Wages is the money paid to a worker for doing work. Wages are calculated by a per hour, per day, or per job rate. Earnings are the amount of money a person made in a time period.
A pay structure is a system that defines what each individual and job role is paid based upon their value to the business and effectiveness in their role.
Wage structure is the hierarchy within a company that sets the amount each level of employment is paid and what benefits each level is due. Lower-level employees are paid less than other people at the business, and these employees may get an hourly wage as opposed to a set salary.
Establish value for each position in your company. Consider your company's competitive posture. Define compensable leverage for your company. Look at external inequalities. Develop a salary structure for your organization.
A pay system is the method used to determine what a position should pay and how much a person should earn. For instance, if a new employee starts at a company, a pay system can help to weigh that person's skill and years' experience to find a fair pay rate compared to what other employees are earning.
Rice's job structure is a system which organizes jobs into groups that share common functional responsibilities and similar types of education, experience and skill requirements.
Step 1: Establish overall pay range. Determine a company minimum and a company maximum pay. Step 2: Establish number of grades. Step 3: Establish a range per grade. Step 4: Create pay grade chart. Step 5: Review and amend.
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