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Establish your compensation philosophy. Each employer needs a policy which outlines their desired market position. Gather market data. Identify benchmark jobs. Measure your market position. Calculate the comparative. Check your budget. Start allocating. Final adjustments.
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.
A compensation structure (or salary structure) is a hierarchy group of jobs that are assigned to salary ranges within an organization. Salary structures are composed of pay grades that reflect the value of a job within both the internal organization and external job market.
Conduct a review on a regular schedule or tied to specific events. Listen to managers Link the salary structure back to HR strategy and the market. Look broadly when necessary. Communicate the results.
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.
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.
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