Establishing Pay Rates

EstablishingPay Rates

EstablishingPay Rates

InterestingItems on the Report

Averagesalary by company size

Oneof the interesting facts on this salary report is the distribution ofpayment based on the company size or the number of people working ina particular organization. The higher the number of employeestranslates to a higher pay on the managerial staff. Apparently, acompany or organizations that are considered big must also be able topay a salary corresponding to its name. This phenomenon can beattributed to the workload of the managerial staff as well as theprofits generated by that organization

Averagesalary by degree

Salaryallocation based on the particular level varies significantly fromBachelors of Arts, Science and Business Administration. It is evidentthat the employees who have graduated with Bachelor of Arts receive ahigher remuneration than all others. This information is important inadvising the respective organizations on the salary competitivenessof such positions. It is a remarkable observation since one may thinkthat the people with Masters Degrees and Bachelor of Science are atthe highest position of pay which is not the case.

PayIncrease over Time

Theprimary objective of a compensation program in the workplace settingis to motivate the employees to improve their performance. Increasingpay based on the fulfillment of the employee is a major factor thatis affected by competency. It is not easy to achieve a completeremuneration structure without having a criterion that guides theprocess. Although pay for performance seems desirable for mostpeople, the truth of the matter is that it is not easy to be put intopractice, and it is not always advisable.

First,it is important to make sure that before the performance for rewardstrategy has been implemented, there must be a realistic connectionor relationship between increased pay and improved performance. Also,having a link between effort and performance can be utilized as anapproach to guide the process of pay increase over time. It isimportant to make sure that the pay does not remain constant over anextended period without any advances. Since the cost of living andother requirements keep rising, the pay should be able to cater forthe changes in the general economy through constant revision.

Theuse of other means to define the criteria for salary incrementincludes an assessment of the skills. Abilities and efforts. Anincrease in these three aspects coupled with the behavior at the jobalso affects the salary especially when there is a continued increasein acquisition of skills knowledge and abilities. The measure ofproductivity is based on the desirability of the outcomes of theparticular employee. A merit pay system can be generated to determinethe progress of employee payment within a given range. This toolplays the vital role of creating a match between employee performanceand the position in the salary range over time. A good performanceand a working appraisal system complement this system as well as aguide chart.

Specifically,applying the performance evaluation methodology can work by followingthe course of performance measurement, appraisal performance andperformance standards as well as the use of behavior anchored ratingscales. In addition, the observation of knowledge, skills andabilities of the person informs the minimum and the maximum level.When these spheres have been obtained, it is now possible to developa measurement that will provide the range as well as the rate of payincrease for the employee.