Human Resourse Management
Summary
This chapter discusses market-competitive pay systems and describes compensation surveys. Compensation surveys provide "snap-shots" of competitors’ pay practices. Survey information provides the reference points for establishing pay level policies. In this chapter we also learn statistical analysis of compensation surveys, integrating the internal job structure with external market pay rates, compensation policies and strategic mandates. These practices require compensation professionals' sound judgments for making recommendations that fit well with competitive strategies. Careful thought about the meaning underlying the facts and statistics is the key to successfully building market-competitive pay systems.
Introduction
Market competitive pay systems play an important part in attracting and keeping the most qualified employees. Based on market and compensation surveys, compensation professionals build a market competitive compensation system. Strategic analysis is used which is an examination of the external market context and internal factors of a company. External market context is the “industry profile, information about competitors, and long-term growth prospects”. Internal factors consist of the “company’s financial condition, their functional capabilities”. A strategic analysis lets professionals see where they stand against other professionals. Compensation surveys collect and analyze competitor’s information, mainly focused on wages and salary practices. Benefits are also surveyed because a company’s benefit package is a key part of an employee’s salary package. Compensation surveys play an important part because they are used to get a good view of competitions wage practices which can help a company attract and keep an employee.
Pay rate differences for jobs and the differences in employee contributions are represented by pay structures.
An existing analysis of your current compensation system should be a starting
This chapter discusses market-competitive pay systems and describes compensation surveys. Compensation surveys provide "snap-shots" of competitors’ pay practices. Survey information provides the reference points for establishing pay level policies. In this chapter we also learn statistical analysis of compensation surveys, integrating the internal job structure with external market pay rates, compensation policies and strategic mandates. These practices require compensation professionals' sound judgments for making recommendations that fit well with competitive strategies. Careful thought about the meaning underlying the facts and statistics is the key to successfully building market-competitive pay systems.
Introduction
Market competitive pay systems play an important part in attracting and keeping the most qualified employees. Based on market and compensation surveys, compensation professionals build a market competitive compensation system. Strategic analysis is used which is an examination of the external market context and internal factors of a company. External market context is the “industry profile, information about competitors, and long-term growth prospects”. Internal factors consist of the “company’s financial condition, their functional capabilities”. A strategic analysis lets professionals see where they stand against other professionals. Compensation surveys collect and analyze competitor’s information, mainly focused on wages and salary practices. Benefits are also surveyed because a company’s benefit package is a key part of an employee’s salary package. Compensation surveys play an important part because they are used to get a good view of competitions wage practices which can help a company attract and keep an employee.
Pay rate differences for jobs and the differences in employee contributions are represented by pay structures.
An existing analysis of your current compensation system should be a starting