MGMT 4953 Campbell Exam 2

Formula for Pay Level

(base + bonuses + benefits + value of stock holdings) / # of employees

Formula for Labor Costs

(pay level) x (number of employees)

Ranges Support... (7)

*Some flexibility within controls* Relatively stable organization design Recognition via titles or career progression *Midpoint controls, comparatives* Controls designed into system Give managers "freedom with guidelines" 150% range-spread

Common Job Evaluation Methods: Point Method: Disadvantages/Challenges

-Decisions on how many factors should be included in the plan -Overlapping factor definitions create "illusion of validity" -Can create "small numbers"

Labor Market Factors: Basic Assumptions (4)

1. Employers always seek to maximize profits. 2. People are homogenous and therefore, interchangeable. 3. Pay rates reflect all costs associated with employment. 4. Markets faced by employers are competitive.

Major Decisions Involved with Job Evaluation

1. Establish purpose of evaluation. 2. Decide whether to use single or multiple approaches. 3. Choose among alternative approaches. 4. Obtain involvement from relevant stakeholders. 5. Evaluate the plan's usefulness.

Definition: Market Pay Line

A regression analysis or freehand that links a company's benchmark jobs on the x-axis with market rates paid by competitors on the y-axis

Definition: Pay Policy Line

A regression analysis or freehand that links a company's pay structure on the x-axis with salary paid by organization on the y-axis Percent of Market Line: specific percent above or below the market line an employer intends to match Practice must match policy to avoid confusion.

Survey Purpose Adjust the Pay Level Relative to Competitors

Addresses how much to pay Overall movement of pay rates caused by competition for people

Survey Purpose Set the Mix of Pay Forms Relative to Competitors

Addresses what forms of pay i.e. base, bonuses, stock, benefits

Survey: Purpose (5)

Adjust the pay level relative to competitors Set the mix of pay forms relative to competitors Establish or price a pay structure Analyze pay-related problems Estimate the labor costs of competitors

Common Job Evaluation Methods: Types of Ranking (2)

Alternation Ranking Paired Comparison

Competency-Based Structure Competency Analysis: Guidance and Caution

Asks, "Can competencies translate into a measurable, objective basis for pay? Some view competencies as an investment portfolio. Pay on capability versus what is actually being done/performed Competency-based systems are susceptible to discrimination

Market Pricing: Objectives (2)

Base most of internal pay structure on external rates Break down boundaries between internal organization and market forces

Common Job Evaluation Methods: Point Method Definition of Illusion of Validity

Belief that factors capture divergent aspects of a job

Survey Design 3- Jobs to Include and Job-Approaches

Benchmark-Job Approach Low-High Approach Benchmark Conversion/Survey Leveling

Skill Based Structure Skill Plans: Generalist.Multi-Skill Based

Breadth Pay increases by acquiring new knowledge. Certifications rather than job assignments Assigned to jobs based on certifications and work flow Responsibilities can change over a short time.

Size of the range is based on judgment about how the ranges support: (3)

Career paths Promotions Other organization systems Asks, "How wide should the grades be, and how many and what positions should be included in the grade?"

Competency-Based Structure How to Perform Competency Analysis

Clarify the plan objective. Determine what information to collect (i.e. personal characteristics, visionary, organization specifics, etc.) Determine involvement: competencies derive from executive leaders' beliefs about the organization's strategic intent Establish certification methods (how to demonstrate competencies) Resulting structure created: relatively few levels, wide differentials for increased flexibility

Definition: Broad Banding

Collapses salary grades into a few broad bands with sizable ranges Career moves within bands are more common than between bands. Advantage of flexibility without increasing labor costs or opening up the organization for illegal practices Ideal for "changing hats" often Encourages breadth of knowledge Person-Based

Skill Based Structure How to Perform Skill Analysis

Collect specific information on every aspect of the production process. Involve management and employees. Establish certification methods (i.e. peer review, on-the-job demonstrations, on-the-job tests, scheduled fixed reviews points, scheduled recertification)

Common Job Evaluation Methods: Point Method

Compensable factors are based on strategic direction of the business and how the work contributes to the objectives and business strategy. Factor degrees are numerically scaled. Weights reflect the relative importance of each factor.

Survey Design 1- Involvement

Compensation Manager HR Outside consulting firms to protect against lawsuits

Survey Purpose Estimate the Labor Costs of Competitors

Competitive Intelligence Employment Cost Index (ECI): measures quarterly changes in employer costs for compensation

Competitive Pay Policy Alternatives Pay Level: Advantages (6)

Contain labor costs (operating expenses) Increase pool of qualified applicants Increase quality and experience Reduce voluntary turnover Increase profitability of union-free status Reduced pay-related work stoppages *Relating to total compensation

Different Views of Job Evaluation: Assumption Aspect: Assessment of Job Content

Content has intrinsic value outside of the external market.

Definition: Benchmark Job

Contents are well known and relatively stable. Job is common across employers. Reasonable proportion of the work force is employed in this job.

Objectives of Pay Level and Pay Mix (2)

Control costs and increase revenues. Attract and retain employees.

Competitive Pay Policy Alternatives: Conventional Pay-Level Policies vs. New Policies

Conventional: Lead competition Meet competition Follow competition New policies emphasize flexibility Pay-level policy affects performance Disadvantage: Pay-level research focuses on base pay ignoring other forms of pay

Common Job Evaluation Methods Ranking: Disadvantages

Criteria is subjective as evaluators must be knowledgeable about every job Results are difficult to defend Costly solutions may be required

Administering and Evaluating Plans: Recommendations to Prevent Bias in Internal Structures

Define compensable factors and scales. Ensure factor weights are unbiased. Apply the plan in a bias-free manner.

Shaping External Competitiveness: Product Market Factors (2)

Degree of Competition Level of Product Demand

Validity of Job Evaluation Techniques: Measurement (2)

Degree of agreement between ranking compared to agreed-upon ranking of benchmarks Hit rates: degree the evaluation plan matches (hits) an agreed-upon pay structure for benchmark jobs

Skill Based Structure Skill Plans: Specialist

Depth Pay based on knowledge of the person doing the job rather than content or output. Basic responsibilities do not vary day-to-day.

Internal Alignment: Purpose of Job-Based and Person-Based Structures

Design and manage pay structure to aid in success Managers must ensure the structure remains aligned by reassessing work/skills/competencies when needed Distinction blurs and the focus is on what factors create value

To use the marginal revenue product model, one must: (2)

Determine the pay level set by market forces. Determine the marginal revenue generated by each new hire. *provides analytical framework, but oversimplifies

Survey Design: 4 Components

Determine who should be involved. Determine number of employers to be analyzed. Determine which jobs to include and which job-approach to use. Determine what information to collect.

Survey Design Job Approaches: Benchmark Conversion/Survey Leveling

Differences are quantified when job content does not sufficiently match survey jobs

Definition: Grades

Different jobs but considered equal for pay purposes All jobs within a single grade will have the same pay. Grades permit flexibility but are challenging to design.

Competitive Pay Policy Alternatives Employers may vary policy for... (3)

Different occupational families Different forms of pay Different business units

Competency-Based Structure: Purpose (4)

Directly links to organizational strategy Supports work flow Fair to employees Motivates behavior toward organizational objectives *same factors as internal alignment

Definition: Diminishing Marginal Productivity

Each additional employee has progressively smaller shares of production factors to work with Examples: office space, number of computers, telephone lines, hours of clerical support, etc. Unless factors change, each new hire produces less than the previous hire. Amount each hire produces is defined as marginal product.

Modifications to Demand Side

Economic theories must be revised frequently to account for reality. Asks, "Why would an employer pay more than what theory states is the market-determined rate?"

Consequences of Pay-Level and Pay-Mix Decisions: Research Guidance (3)

Efficiency Fairness Compliance

Bands Support... (7)

Emphasis on flexibility within guidelines Global organizations Cross-functional experience and lateral progression Reference market rates, shadow ranges *Controls in budget, few in system* Give managers "freedom to manage" pay 100-400% spread

Market Pricing: Emphasizes and Deemphasizes

Emphasizes external competitiveness Deemphasizes internal alignment *sets pay structures almost exclusively on external market rates

Labor Market Factors: 2 Market Types

Employers are buyers and potential employees are sellers 1. Quoted Price: stores that labor each item's price or ads that list the job opening's starting wage 2. Bourse: stores that allow haggling until an agreement is reached (i.e. eBay)

Consequences of Pay-Level and Pay-Mix Decisions Research Guidance: Compliance

Employers must pay at or above legal minimum wage. Prevailing wage laws and equal rights must be met. Caution exercised when sharing salary information

Competency-Based Structure: Competency Analysis Disadvantages

Failure to adequately screen employees Creates additional pressure on training and development Demotivates employees seeking to acquire and demonstrate competencies

Administering and Evaluating Plans: Person-Based and Job-Based Structure (3)

Fairness in the plan's administration Availability of sufficient information Adequate communication and employee involvement

Motivation Theory: Goal Setting Theory Features Predictions About Performance-Based Pay Outcomes

Features: Challenging performance goals influence greater intensity and duration in employee performance. Goals serve as feedback standards to which employees can compare their performance. Individuals are motivated to the extent that goal achievement is combined with receiving valued rewards. Predictions About Performance-Based Pay: Performance-Based Pay must be contingent upon achievement of important performance goals. Performance goals should be challenging and specific. The amount of the incentive reward should match the goal difficulty. Outcomes: Line of sight is important--employees must believe they can influence performance targets. Performance targets should be communicated in terms of specific, difficult goals. Feedback of performance is important. Performance-Based payouts must be contingent upon achievement of performance goals.

Motivation Theory: Herzberg's Two-Factor Theory Features Predictions About Performance-Based Pay Outcomes

Features: Employees are motivated by two types of motivators: hygiene factors and satisfiers. Hygiene, or maintenance, factors in their absence prevent behaviors, but in their presence cannot motivate performance. They are related to basic living needs, security, and fair treatment. Satisfiers motivate performance (i.e. recognition, promotion, achievement). Predictions About Performance-Based Pay: Base pay must be set high enough to provide individuals with the economic means to meet hygiene needs, but it cannot motivate performance. Performance is obtained through rewards. Performance-Based Pay is motivating when it is connected with meeting employees' needs for recognition, pleasure attainment, achievement, and the like. Other factors: interpersonal atmosphere, responsibility, type of work, and working conditions Outcomes: Pay level is important--must meet minimum requirements before performance-based pay is a motivator. Security plans will not induce minimum but not provide additional performance.

Motivation Theory: Equity Theory Features Predictions About Performance-Based Pay Outcomes

Features: Employees are motivated when perceived outputs (pay) are equal to perceived inputs (effort, work behaviors, etc.) Unequal output-to-input creates discomfort. If employees perceive others are paid more for the same effort, they will react negatively. Predictions About Performance-Based Pay: Pay-performance link is critical. Increases in performance must be matched by increases to pay. Performance inputs and expected outputs must be clearly defined and identified. Employees evaluate their pay via comparisons with other employees. Outcomes: Fairness and consistency is important. Relative pay matters due to comparison against other employees.

Motivation Theory: Expectancy Theory Features Predictions About Performance-Based Pay Outcomes

Features: Motivation is the product of expectancy, instrumentality, and valance. Expectancy: employees' assessment of their ability to perform required job tasks Instrumentality: employees' beliefs that requisite job performance will be rewarded by the organization Valence: value employees attach to the organization rewards offered for satisfactory job performance Predictions About Performance-Based Pay: Job tasks and responsibilities should be clearly defined. Pay-performance link is critical. Performance-based pay returns must be large enough to be seen as rewards. People choose the behavior that leads to the greatest reward. Outcomes: Larger incentive programs are better than smaller ones. Line of sight is critical--employees must believe they can influence performance targets. Employee assessments of their own ability are important--organizations must be aware of training and resource needs required to perform at target levels.

Motivation Theory: Agency Theory Features Predictions About Performance-Based Pay Outcomes

Features: Pay directs and motivates employee performance. Employees prefer static wages (i.e. salary) to performance-based pay. If performance can be accurately monitored, payments should be based upon satisfactory completion of work duties. If performance cannot be monitored, pay should be aligned with achieving organizational objectives. Predictions About Performance-Based Pay: Performance-based pay must be tightly linked to organizational objectives. Employees dislike risky pay and will demand a wage premium (higher total pay) in exchange for performance-based pay Performance-based pay can be used to direct and induce employee performance. Outcomes: Performance-based pay is the optimal compensation choice for complex jobs where monitoring work is difficult. Performance targets should be tied to organizational goals. Use of performance-based pay will require higher total pay opportunity.

Motivation Theory: Maslow's Need Hierarchy Theory Features Predictions About Performance-Based Pay Outcomes

Features: People are motivated by inner needs. Needs form a hierarchy from most basic (food and shelter) to higher-order (love, self actualization) Needs are never fully met Higher-order needs are more motivating after lower-order needs are met. When needs are not met, they are frustrated. Predictions About Performance-Based Pay: Base pay must be set high enough to provide individuals with the economic means to meet basic living needs. An at-risk program will not be motivating since it restricts ability to meet lower-order needs. Success-sharing plans may be motivating to the extent they help pursue higher-order needs. Outcomes: Performance-Based Pay may not be motivating. Incentive pay is motivating to the extent it is attached to achievement, recognition, or approval.

Motivation Theory: Reinforcement Theory Features Predictions About Performance-Based Pay Outcomes

Features: Rewards reinforce performance. Rewards must follow directly after behaviors to be reinforcing. Behaviors that are not rewarded will be discontinued. Predictions About Performance-Based Pay: Performance-Based Pay must follow closely behind performance. Rewards must be tightly coupled to desired performance objectives. Withholding payouts can be a way to discourage unwanted behaviors. Outcomes: Timing of payouts is important.

Modifications to Supply Side (6)

Geographical barriers Union requirements Lack of information about job openings Degree of risk involved Degree of unemployment Non-monetary aspects of job Key: Understanding Employee Behavior

Different Views of Job Evaluation: Assumption Aspect: Measurement

Honing instruments will provide objective measurements.

Behaviors Employers Care About: 4 Questions

How do we attract good employment prospects to join our company? How do we retain these good employees once they join? How do we get employees to develop skills for current and future jobs? How do we get employees to perform well while they are here?

Definition: Job-Based Pay

Individuals are paid based on the job to which he or she is assigned rather than the collection of skills they possess (skill-based pay)

Shaping External Competitiveness: Organizational Factors (4)

Industry and Technology Organizational Strategy Employer Size Individual Manager (people preferences)

Adjusting Pay Structure Reconcile Differences by Reviewing: (3)

Job analysis Evaluation of the job Market data *differences may arise due to shortage of a particular skill which drives up market rate

Key Differences in Approaches Job-Based, Skill-Based, Competency Based: Advantages

Job-Based: clear expectations, sense of progress, pay based on value of work performed Skill-Based: continuous learning, flexibility, reduced work force Competency Based: continuous learning, flexibility, lateral movement

Key Differences in Approaches Job-Based, Skill-Based, Competency Based: Procedures

Job-Based: job analysis, job evaluation Skill-Based: skill analysis, skill certification Competency Based: competency analysis, competency certification

Key Differences in Approaches Job-Based, Skill-Based, Competency Based: Limitations

Job-Based: potential bureaucracy, potential inflexibility Skill-Based: potential bureaucracy, requires cost controls Competency Based: potential bureaucracy, requires cost controls

Key Differences in Approaches Job-Based, Skill-Based, Competency Based: Employee Focus

Job-Based: seek promotions to earn more pay Skill-Based: acquire skills Competency Based: acquire competencies

Skill-Based Pay: Advantages

Less bottlenecks as people are better matched to work flow Supports work flow

Key Components of Skill-Based Pay

Links pay to the depth or breadth of the KSAs a person acquires relevant to the work Structures based on skill compensate for all the skills/certifications regardless of whether the work requires all or just a few Supports: Strategy Objectives Work flow Motivates behavior toward organizational objectives Fair to employees

Common Job Evaluation Methods Point Method: Who Participates in the Formation?

Managers and employees with a stake in the results Occasionally/Others: Committees Task Forces Teams Representatives from key operating functions Union representatives (help gain acceptance) Compensation Analysts

Competitive Pay Policy Alternatives: Lead Pay-Level Policy

Maximizes ability to attract and retain quality employees

Interpreting Survey Results and Constructing a Market Line Statistical Analysis: Mean Definition Advantages/Disadvantages

Mean: sum all rates and divide by the number of rates Advantages/Disadvantages: -Commonly understood -If only using company data, it will not accurately reflect market conditions.

Interpreting Survey Results and Constructing a Market Line Statistical Analysis: Median Definition Advantages/Disadvantages

Median: order all data points from highest to lowest, the middle data point is the median Advantages/Disadvantages: -Minimizes distortion caused by outliers

Competitive Pay Policy Alternatives Lead-Pay Level Policy: Advantages

Minimizes dissatisfaction with pay Offsets less attractive job features Linked to reduced: Turnover Quit rates Absenteeism

Interpreting Survey Results and Constructing a Market Line Statistical Analysis: Mode Definition Advantages/Disadvantages

Mode: most commonly occurring rate Advantages/Disadvantages: -Must draw frequency distribution to calculate it

Competitive Pay Policy Alternatives: Pay with Competition (Match)

Most common policy Matches wage costs to product competitors Attract applicants equal to the labor market competitors

Shaping External Competitiveness: Labor Market Forces (2)

Nature of Demand Nature of Supply

Competitive Pay Policy Alternatives Lead-Pay Level Policy: Disadvantages

Need to increase current employee wages May mask negative job attributes

Different Views of Job Evaluation: Assumption Aspect: Negotiation

Negotiating brings rationality to a social/political process; establishes rules of the game and invites participation

Administering and Evaluating Plans: Bias in Internal Structures

No evidence for susceptibility in gender bias Wages criteria bias indirectly affects job evaluation

Survey Design 2- Number of Employers

No firm rules on how many to include Bureau of Labor Statistics (BLS): publicly available data Online salary information

Consequences of Pay-Level and Pay-Mix Decisions Research Guidance: Efficiency

No research to what circumstances managers should choose what pay-mix Pay-level may not gain competitive advantage Wrong pay-level can be a disadvantage

Common Job Evaluation Methods: Point Method Definition of Small Numbers

One job's characteristics being used in the entire work domain

Survey Design 4- Information to Collect

Organizational Data: Financial data Reporting relationships Turnover Revenue Total Compensation Data: Base pay Total cash Total compensation

Surveys provide data for translating policy into... (3)

Pay levels Pay mix Structure

Market Pricing: Business Strategy

Pay structure aligned with competitors' Unique or difficult-to-imitate aspects of pay structure are deemphasized

Aspects of Pay Structure (2)

Pay-Policy Line Pay Ranges

How to Obtain Desired Behavior

Progressive companies ask, "What do we want our compensation package to do?" Rewards Influencing Behavior: Compensation Job rewards Empowerment Recognition Opportunities for advancement

"The Perfect Structure" will...

Provide sufficient ambiguity to afford flexibility Too generic of an approach may not provide sufficient detail to make a clear link between pay, work, and results. Too detailed of an approach may become rigid.

Grades and Ranges offer flexibility deal with pressures from external markets and differences among firms regarding... (3)

Quality of individuals applying for work Productivity or value of these quality variations The mix of pay forms competitors use

Interpreting Survey Results and Constructing a Market Line Statistical Analysis: Quartiles and Percentiles Definition Advantages/Disadvantages

Quartiles and Percentiles: orders all data points from lowest to highest, then converts into percentages Advantages/Disadvantages: -Commonly used in salary surveys -Frequently used to set pay ranges or zones

Grades and Ranges: 3 Factors

Range Midpoints Range Minimums Range Maximums

Pay Range Provides Managers the Opportunity to: (3)

Recognize individual performance differences with pay Meet employees' expectations that their pay will increase over time in the same job Encourage employees to remain with the organization

Consequences of Pay-Level and Pay-Mix Decisions Research Guidance: Fairness

Satisfaction with pay is directly related to pay level Fairness related to how others are paid

Common Job Evaluation Methods: Classification

Series of classes covers the range of jobs Job descriptions are compared to class descriptions to determine class level. Great specificity of the class definition improves reliability of evaluation, but limits the number of jobs that are easily classified. Jobs within classes are considered equal and paid equally.

Banding: 2 Steps

Set the number of bands Price the bands (reference market rates)

External Competitiveness is expressed by: (2)

Setting pay level that is above, below, or equal to competitors Determining the pay mix relative to those of competitors

Common Job Evaluation Methods Ranking: Advantages

Simple, fast Easy to understand and explain to employees Least expensive initially

Overlaps in Grades and Ranges

Size of differentials between grades should support career movement through the structure. Overlap should be large enough to encourage flexibility but small enough to encourage employees to seek promotions.

Which job structure does not use grades and ranges?

Skill-Based Plans establish a single flat rate for each skill level regardless of performance or seniority.

Early Conceptions of Competencies Focused On: (5 Characteristics)

Skills Knowledge Self-Concepts Traits Motives

Survey Purpose Analyze Pay-Related Problems

Specific pay-related problems Studying special situations

Survey Design Job-Approaches: Benchmark-Job Approach

Stable job content Common Includes sizable number of employees

Different Views of Job Evaluation: Assumption Aspect: Assessment of Relative Value

Stakeholders can reach consensus on value.

Interpreting Survey Results and Constructing a Market Line Statistical Analysis: Standard Deviation Definition Advantages/Disadvantages

Standard Deviation: how tightly all the rates are clustered around the mean Advantages/Disadvantages: -Shows how similar or dissimilar market rates are from each other Small Std. Dev.: rates tightly bunched at center of bell curve Larger Std. Dev.: rates are more spread out along bell curve

A structure is internally aligned if it... (4 Characteristics)

Supports organizational strategy Supports work flow Fair to employees Motivates behavior toward organizational objectives

Survey Purpose Establish or Price a Pay Structure

Validate job evaluation results Establish internal structure

Different Views of Job Evaluation: Assumption Aspect: External Market Link

Value cannot be determined without external market.

Survey: Interpretation

Verify data for accuracy and anomalies. Verify the accuracy of the match. Some use the benchmark conversion/survey leveling approach. Anomalies Does any one company dominate? Do all employers show similar patterns? Do outliers exist?

Survey Design Job-Approaches: Low-High Approach

Wages of lowest and highest paid Benchmark jobs used as anchors for skill-based structures

Interpreting Survey Results and Constructing a Market Line Statistical Analysis: Weighted Mean Definition Advantages/Disadvantages

Weighted Mean: the rate for each company is multiplied by the number of employees; then the total of all rates is divided by the total number of employees Advantages/Disadvantages: -Gives equal weight to each individual's wage -Captures size of supply and demand in the market

Skill Based Structure Outcomes of Skill-Based Pay Plans: Advantages and Disadvantages

Well accepted by employees: provides strong motivation for individuals to increase skills Becomes increasingly expensive Plan's success is determined by how well it aligns with organizational strategy May fit better in a firm with low labor costs Raises concern about "jack-of-all-trades" or "master of none"

Employee Motivation: 3 Elements

What's important to a person and offering it in exchange for a desired behavior Employees prefer pay systems influenced by individual performance, COLA, seniority, and the market rate

Competency Based Structure: Steps to Achieve Internal Alignment

Work Relationships within the Organization Core Competencies: linked to mission statement Competency Sets: translate each core competency into action Behavioral Descriptors: competency indicators are the observable factors that indicate competency Competency Based Structure: outcome

Internally Aligned Job Structure Steps

Work Relationships within the Organization Job Analysis Job Description Job Evaluation Job Structure: the outcome

Definition: Skill-Based Pay

Work involving teams, multi-skills, and flexibility *appears in manufacturing

Pay Structure Relating to Pay-Policy Line

anchored by the organization's external competitive position and reflected in the pay-policy line

Definition: Pay Level

average of the array of rates paid by an employer

Modern Definition: Competencies

collection of observable behaviors that require no inference, assumption, or interpretation

Validity of Job Evaluation Techniques: Definition

degree the evaluation assesses relative job worth

Definition: Distributive Justice

fairness in the amount that is distributed to employees

Definition: Procedural Justice

fairness of the procedures used to determine the amount of rewards

Definition: Marginal Revenue

money generated by the sale of marginal product

Types of Ranking: Alternation Ranking

orders job descriptions alternatively at each extreme

Common Job Evaluation Methods: Ranking

orders job descriptions from highest to lowest based on relative value

Definition: External Competitiveness

pay relationship among organizations; the organization's pay relative to its' competitors *2nd part of the pay model

Competitive Pay Policy Alternatives: Lag Pay-Level Policy

paying below market rates may not attract employees unless coupled with higher future returns Combination may: Increase employee commitment Foster teamwork Increase productivity

Definition: Survey

systematic process of collecting and making judgements about the compensation paid by other employers *translating external pay policy into practice requires external market information

Definition: Skill Analysis

systematic process of identifying and collecting information about skills required to perform work in an organization

Definition: Pay Range

two or more rates are paid to employees in the same job

Types of Ranking: Paired Comparison

uses a matrix to compare all possible pairs of jobs

Definition: Pay Mix

various types of payments, or pay forms, that make up total compensation i.e. performance driven, market match, work/life balance, security