Comp & Reward TEST 2

Define Benchmark Jobs:

(key job) its contents are well known and relatively stable over time. - job is common across a number of different employers examples: - accountant - marketing manager - IT help desk - Administrative assistant - top operations executive - engineer

Major Decisions in Job Evaluation include:

- Establish purpose of evaluation - Decide whether to use single or multiple plans - Choose among alternative approaches - Obtain involvement of relevant stakeholders - Evaluate plan's usefulness.

Purposes of Job Evaluation

- Help SET PAY for jobs where market pay survey data is un-available by comparing the internal value. - Match a job in a particular company to a comparable job of similar value in a market pay survey. - Pay jobs based on which ones are most important to the company's strategy

BENEFITS of Job Evaluation

- Internal consistency - Organizational alignment - Control labor costs - Fairness & equity - Job worth hierarchy - Market competitiveness

what are pay level adjustments based on?

- MOVEMENT of pay rates caused by competition in the market - performance -ability to pay employees -terms specified in contracts

What are some factors to consider for choosing what type of JE plan?

- Market Pricing = MOST PREVALENT - Job Ranking = less time, COSTS LESS - Point Factor = EXPENSIVE, complex, and difficult to explain but if done correctly it is EASILY DEFENDED IN COURT OF LAW

Give examples of transversal competencies:

- Positive can do attitude - Commitment - Teamwork - Effective communication - Reliability - Excellence - Problem solving & continuous improvement

List some of the purposes of skill based structure

- Supports strategy and objectives - Work flow, so you don't have to hire tons of ppl for one purpose you can shift them around to diff jobs based on needs - Fairness to employees

What is pay mix? Examples?

- The different payments or pay forms that make up total compensation such as benefits incentives, all the different pieces of compensation - Pay mix is HARDER to charge, more costly, most ppl don't want to change

How do you determine your labor market?

- WHO & WHAT your market is and establish appropriate competitive position based on who you select. determining factors: - Occupation: skill or knowledge required -Geography: willingness to relocate, commute, or become a virtual employee -Competitors: other employers in the same product or service labor markets.

Outcomes of Skill Based Pay Structures?

- provide STRONG MOTIVATION to increase individual skills. - can be expensive if all employees "top out" leaning they have acquired all of the skills they can be paid for so they are being paid the most. - labor costs in general tend to be higher, some employers require employees stay at a rate for a certain amount of time in order to keep employees from topping out quickly.

Ranking factors of a job:

1 = the compensable factor has little to no role within the job 2 = meaning the factor has a slight role and little importance 3 = meaning the factor has an average role and some importance 4 = meaning the factor has an above average role and significant importance 5 = meaning the factor is a main part of the job. If a factor is given a 5, it means it is an essential part of performing the job effectively.

process of creating a skill based structure:

1. CLARIFY OBJECTIVE 2. CLASSIFY CORE COMPETENCIES - often linked to the mission statement, expressing an organization's values, business strategies, and plans. 3. COMPETENCY SETS - grouping and subgrouping related units of competency into sets -translate each core competency into ACTION. ex) core competency = Interactive Communication (scale increases from 1-4 indicating complexity levels) Level 1: (Listens and clearly presents information) (set of competencies that fall under this LEVEL of communication competencies) - listens/ pays attention -presents info and in a logical manner -shares info willingly and timely - communicates honestly & respectfully Level 2: (Fosters 2 way communication) - recalls other's main points and takes them into account - checks own understanding -gives comments and feedback -maintains continuous, open communication Level 3 (Adapts Communication) -tailors communication to diverse audiences -reads cues from listeners, changes approach to effectively deliver messages -communicates effectively at varying organizational levels - understands's others needs Level 4 (Communicates complex messages) - communicates complex issues - handles difficult questions -overcomes resistance and secures support 4. BEHAVIORAL DESCRIPTORS - anchor the DEGREE of competency required at each LEVEL of COMPLEXITY of the work. ex) Level 1 = entry level engineer Level 2 & 3 = working level engineer Level 4 = Managing engineer = COMPETENCY-BASED STRUCTURE Decisions: - what is the objective? - what info needs to be collected? - what METHODS should be used to DETERMINE AND CERTIFY COMPETENCIES?

what are the 3 characteristics of the point factor method?

1. Compensable factors 2. Factor degrees numerically scaled 3. Weights reflecting the relative importance of each factor

what are the 6 benefits of job content evaluation?

1. Internal consistency 2. Organizational alignment 3. Control labor costs 4. Fairness & equity 5 Job worth hierarchy 6. Market competitiveness

what are the 3 pay level policies?

1. LEAD -MAXIMIZES the ability to ATTRACT & RETAIN quality employees. minimizes employee dissatisfaction. 2. LAG - paying BELOW market rates may hinder the ability tp attract employees. -HOWEVER, if a lag pay policy is couples with the promise of higher future returns, this can help increase attraction. - it is possible to lag on pay level, but lead on other work returns. 3. MATCH - MOST COMMON -match rates paid by competitors - aka "pay with competition policy" - ability to attract workers is = to competitors

what factors shape external competitiveness?

1. Labor Market Factors -nature of demand, nature of supply 2. Product Market Factors -degree of competition, level of product demand 3. Organizational Factors -industry, strategy, size

What is the purpose of competency based structures?

1. Organization strategy: link to the organization's strategy 2. work flow: competencies may require more tactic knowledge 3. fair to employees: critics worry about basing pay on personal characteristics, justifying pay differences may create risks. 4. motivate behavior toward organization objectives: competencies provide guidelines and keep people focused.

what are the 2 types of markets?

1. Quoted Price = price is KNOWN (amazon) 2. Bourse = allows price haggling (ebay)

process of creating a skill-based structure:

1. SKILL ANALYSIS -process of identifying and collecting information about skills required to perform work in an organization 2. SKILL BLOCKS -related skills can be grouped into a skill block and skill blocks can be arranged by levels into a skill structure 3. ESTABLISH A SKILL CERTIFICATION -a process is needed to describe, CERTIFY, and VALUE the skills. - Organizations may use peer review, on the job demonstrations, or tests to certify that employees possess and apply skills. = SKILL BASED STRUCTURE. Decisions: - what is the objective? - what info needs to be collected? - what METHODS should be used to DETERMINE AND CERTIFY SKILLS?

when defining competencies, there are 5 areas to look at. what are they?

1. SKILLS: demonstration of expertise 2. KNOWLEDGE: accumulated information 3. SELF-CONCEPTS: attitudes, values, self image 4. TRAITS: general disposition tp behave in a certain way 5. MOTIVES: recurrent thoughts that drive behaviors

what are the steps to determining externally competitive pay levels & structures?

1. SPECIFY A POLICY 2. SELECT A MARKET -specify relevant markets 3. DESIGN A SURVEY - define the purpose of survey 4. DRAW UP POLICY LINES 5. MERGE INTERNAL & EXTERNAL PRESSURES = EXTERNALLY COMPETITIVE PAY LEVELS / MIX / STRUCTURES

What are the 2 types of skill plans?

1. Specialist (depth) PAY is BASED on the KNOWLEDGE of the individual - a teacher is an example - basic responsibilities do not vary on a daily basis. 2. Generalist (breadth) Those in a multi-skill system EARN PAY INCREASES by ACQUIRING new knowledge. - more pay come from = CERTIFICATION OF NEW SKILLS. - responsibilities can change drastically over a short time.

what are the 2 objectives of PAY LEVEL & PAY MIX?

1. control costs and increase revenues 2. attract and retain employees

what information should be collected on a market survey?

1. information about the organization - revenue -size of org 2. information about the TOTAL COMPENSATION system -Base pay, total cash, and total compensation are the most commonly used measures of compensation. 3. Specific pay data on each incumbent in the jobs under study -date, job, pay

List the "great 8" competencies:

1. organizing & executing 2. leading & deciding 3. analyzing & interpreting 4. adapting & coping 5. interacting & presenting 6. creating & conceptualizing 7. enterprising & performing 8. supporting & cooperating

how to establish bands

1. set the number of bands - Establish bands at major breaks, or differences, in work or skill - Titles used to label each band reflect these breaks - The CHALLENGE is how much to pay employees in the same band but performing different functions. 2. Price the bands: reference market rates - There may be four bands = associates, professionals, lead professionals, senior professionals - including multiple job families. Three job families in the professional band = purchasing, finance, and engineering. - have different reference rates drawn from survey data.

How is External Competitiveness expressed?

1. setting a PAY LEVEL - above -below -equal to competitor's 2. determining a PAY MIX -various types of payments, or pay forms, that make up total compensation.

What are the two types of person-based structures?

1. skill based 2. competency based

what are core competencies?

1. skills 2. knowledge 3. observable behaviors that FORM success at any level or job.

What are the purposes of Skill-Based Structures?

1. supports the strategy and objectives of the org - skills need to DIRECTLY relate to the organization's objectives and strategy, skill based structures make sure of this. 2. supports work flow -matching people to changing work flow 3. is FAIR to employees - skill based structures give workers more CONTROL over their work life. -favoritism and bias may be an issue 4. Motivates behavior toward organization objectives - fluid work assignments require less supervision, resulting in labor cost savings

what is the purpose of a market survey?

1. to study special situations -may focus on a targeted group - to investigate a high turnover rate (lots of people quitting) 2. to estimate competitors labor costs - survey data = competitive intelligence - the dept of labor regularly publishes the "employment cost index" which is a type of salary survey.

how to interpret survey data

1. verify data - check for anomalies (are there patterns? outliers? does one company dominate?) -age of data -nature of organizations 2. accuracy of match -if a company job is similar but not identical (to the survey job), some use BENCHMARK CONVERSION/ SURVEY LEVELING - multiply survey data by a factor that an analyst decides is the difference between the company job and survey job.

what are the 2 approaches to creating a survey?

1.Benchmark -Job Approach - if the purpose of the survey is to price the entire structure, then select benchmark jobs to include the entire structure. The degree of match is assessed by various means. 2. Low-High Approach -use the lowest and highest paid benchmark jobs as anchors.

what is central tendency?

A measure reducing a large amount of data into a single number. Ex: mean, median, mode

Describe how reliability is important to Job Evaluation techniques

A reliable evaluation has evaluators producing the same results Use trained evaluators Reliability for job evaluation scores are HIGHER than those for job analysis.

What is the process of updating pay data when it is outdated?

Aging Apply the current rate to market increase to survey number so you have a current number.

what is a pay level?

Avg or the array of rates an employer pays. What r u paying them?

what data should be used when determining pay grades and pay ranges?

BASE PAY because it best reflects the basic value of the work.

In a market survey, what does each measure of compensation: - base pay -total cash - total compensation tell you about your competitors?

BASE PAY = tells how competitors are valuing work in similar jobs - does NOT include other forms of compensation. Does not give full picture. TOTAL CASH = tells how competitors are valuing work, AND cash pay for job performance (bonuses) - all employees may not receive incentives, can overstate competitors pay. TOTAL COMPENSATION = tells the TOTAL VALUE competitors place on work

What is the first step in verifying survey results?

Check accuracy of job matches. Don't look at job titles to make this match. Read through benchmark description, just bc title is same doesn't mean same job content

Explain the JE method: Point Factor

Compare jobs on RATING SCALES of specific factors. 3 common characteristics with point methods: 1. compensable factors 2. factor degrees numerically scaled 3. weights reflecting the relative importance of each factor. * The job's relative value is determined by the total points assigned to it. * COMPENSABLE FACTORS: are based on strategic direction and how the work contributes to these objectives and strategy. STEPS: 1. conduct job analysis 2. determine compensable factors (common include: skill, effort, responsibility, and working conditions) 3. scale factors (normally 1-4) 4. weigh the factors (% adding to 100%) according to importance 5. select criterion pay structure 6. communicate plan and train users 7. apply to non-benchmark jobs Pros: stability, accuracy Cons: complexity, time & expense.

Explain the JE method: Job Ranking

Compare jobs using a single global factor that presumably COMBINES all parts of the job. Ranking simply ORDERS THE JOB DESCRIPTIONS FROM HIGHEST TO LOWEST based on relative value or contribution to success. examples: 1. president 2. vice president (marketing) 3. director (production) 4. senior engineer 5. engineer 6. associate engineer Pros: easy to explain, cheap Cons: lack of descriptions, differences among raters, influenced by pay JOB RANKING OPTIONS: 1. STRAIGHT: ordering info on job titles / short briefs. Useful to have actual job description for reference. 2. ALTERATION: List of job titles are provided with equal number of blanks. Job title with highest rank is recorded at the top and then lowest at bottom. Continue process. 3. PAIRED COMPARISON: raters compare all possible pairs of jobs. Compare each pair of jobs at least once. Job title with highest ranking is 'marked" each time it is selected. After all comparisons are made, rank in order of highest to lowest number of 'marks'.

Explain the JE method: Job Classification

Defines categories of jobs and slots jobs into CLASSES. - a series of classes covers a RANGE of jobs - class descriptions are the labels the label captures work detail yet is general enough to cover multiple jobs. = the end result is a JOB STRUCTURE made up of a SERIES OF CLASSES with a number of jobs in each class. example: (HR) - label - C-level- CHRO - Director- HR Director -Manager- HR Manager -Analyst- HR Analyst (FInance) - label - C-level- CFO - Director- Finance director - Manager- finance manager - analyst- financial analyst

what are some of the basic theories of labor markets?

Employers always seek to maximize profits People are interchangeable Pay rates reflect all costs associated with employment Competitive markets give no advantage in paying non - market rate

Explain how an employer might have different pay levels for base pay and total compensation?

End of year bonuses vs just a set pay every month, different contributors, might be more beneficial for a company to give you stocks instead

T/ F ? if two companies have the same dollar $ amount of Total Compensation (ex: $75,650), they have the same pay mix and pay level.

FALSE Companies can have the same total compensation $ amount, but it can be slip up into different mixes of (base pay, bonus, stock options, and benefits)

T / F ? employers typically stick to one pay policy for all employees and positions within an organization

FALSE many employers use MULTIPLE Pay Policies, sometimes for different occupational families.

T/F organizations like to stick to their pay structure for long period of time?

FALSE most organizations adjust pay on a REGULAR BASIS to stay competitive. HOWEVER some reasons changes occur less often is because -it costs a lot to redesign a mix -some companies like to keep doing what they are doing -some companies just don't care and don't pay attention

How can grades and ranges offer flexibility?

Grades and ranges offer flexibility for: •Differences in quality among applicants •Differences in productivity or value of quality variations •Differences in the mix of pay forms used by competitors

describe the "perfect structure"

Increase pay through promotions or acquisition of skills Job based approach = Pay only as much as the work is worth Skill/ Competency based = pay for the highest level of skill regardless of work performed. Internally aligned pay structures can be designed to: -Help determine pay for the wide variety of work and ensure that pay influences attitudes and behaviors and directs toward objectives

what is a market pay line?

It summarizes the distribution of going rates paid by competitors in the market. LINKS benchmark jobs (horizontal axis) with market rates paid by competitors (market survey) on the vertical axis. draw a market pay line by connecting your data points graphed

what JE plans look at the WHOLE job?

Job Ranking Job Classification

What are skill based structures?

LINK PAY to the DEPTH or BREDTH of the SKILLS abilities, and knowledge a person acquires relevant to work. - These structures pay for all the certified skills of the individual, regardless of whether the work requires all or a few skills In contrast, a job-based plan pays employees for the job, regardless of the skills they possess

How do you calculate labor costs?

Labor costs = (# of employees) X (average pay level) average pay level = (base pay + increases + benefits + allowances)

what is a price fixing lawsuit?

Lawsuits allege the direct exchange of survey data violates Section 1 of the Sherman Act outlawing conspiracies in restraint trade. Price fixing happens if survey PARTICIPANTS INTERFERE with competitive prices and artificially HOLD DOWN wages. Identifying participants' data by COMPANY NAME is considered price fixing.

explain (market rate) on a labor supply & demand graph

Market rate is where labor supply and labor demand CROSS / INTERSECT. market rate is also known as the "going rate"

do all employers use grades and ranges to determine pay?

NO! skill based plans establish a flat rate for each skill level.

what is the point of offshoring?

Offshoring is great for jobs with these characteristics: - Easily routinized - Inputs & outputs easily - transmitted electronically - Little need for interaction with other workers - Little need for local knowledge OFFSHORING = SAVINGS $$

The job evaluation plan that would hold up most in court during a lawsuit?

POINT FACTOR

List the TYPES of Job Evaluation Plans: - specify each plan (qualitative/quantitative)

Qualitative (whole job) JE Plans: - Job Ranking - Job Classification Quantitative (job components)J E Plans: - Point Factor - Market Pricing

ranges vs bands

Ranges: - support recognition of titles Bands: - emphasis on flexibility

How do you know a Job Evaluation is reliable? and valid?

Reliable= evaluators produce same results Valid= if it measures what it is supposed to? based on hit marks and benchmark job values

how to set pay for NON Benchmark jobs

Setting pay for benchmark jobs is EASY with a GOOD SURVEY MATCH For non benchmark jobs, the market pay lines are useful. One approach is to find a similar job with close job evaluation points. Or use the market survey line regression equation

Job Evaluation Definition

The PROCESS of systematically determining the RELATIVE WORTH of JOBS to create a job structure for the organization. The evaluation is based on combination of: - job content -skills required -value to the organization -organizational culture -external market.

What is the final RESULT of the Job Evaluation process?

The final result is a structure, a HIERARCHY of work that translates an internal alignment policy into practice. - organizations commonly have multiple structures that apply to different functional groups or units. - JE provides WORK- RELATED and BUSINESS-RELATED order and logic.

benchmark jobs explained

The managerial group may contain: - a vice president -division general managers -managers -project leaders -supervisors BUT the only benchmark jobs of these are: -vice president -supervisor.

How is Job Evaluation defined?

The process of systematically determining the relative worth of jobs to create a job structure for the organization.

Describe how validity is important to Job Evaluation techniques

Validity refers to the degree to which the job evaluation assesses what is intended. Which is the WORTH of jobs to an organization. The degree of agreement between rankings in the evaluation with rankings of benchmark jobs Hit Rates: the degree to which the evaluation plan matches an agreed upon pay structure for benchmark jobs.

Explain the JE method: Market Pricing

Value of each job is determined through the ANALYSIS of the EXTERNAL MARKETPLACE as typically reported through SALARY SURVEYS. - creates a Job-Worth Hierarchy based on the "GOING RATE" for benchmark jobs in the external marketplace - Hierarchy is based on the external marketplace FIRST and the internal equity second. STEPS: 1. Collect 3 or more salary surveys to market price a business 2. Identify benchmark jobs and match to the external marketplace 3. Summarize market data and analysis for the benchmark jobs 4. Develop a salary structure based on market data for the benchmark jobs 5. Slot non benchmark jobs 6. Develop a compa-ratio report comparing employees' pay to the midpoints of the recommended salary structure with related costs. 7. Obtain top management approval * attempt to match 70% of job content

why do we need to update survey data?

Wages paid by competitors are ALWAYS changing, so a survey is outdated before it is available. The pay data is usually updated, through aging or trending to forecast new rates for when pay decisions are implemented. ex) if base pay has been increasing by 5% annually, multiply your survey rate by 105% to account for the change that is expected at the end of the current year.

what is benchmark conversion / survey leveling?

When jobs do not match survey jobs, quantify the difference using benchmark conversion. If an organization uses job evaluation, then apply that system to the survey jobs.

Describe the reasons a company may want to do a survey

When you participate, you get a discount A good way to benchmark jobs against competitors Pay level determination If you don't have a lot of info on a job Attracting and retaining people

what is a relevant labor market?

a market that is similar to yours a BIG part of determining how and how much to pay each organization operates in many labor markets, each with unique supply & demand

What is skill based pay?

a pay system that rewards employees for the job skills they can demonstrate

What is a Skill Analysis?

a systematic process of identifying and collecting INFORMATION about SKILLS REQUIRED to perform work in an organization

what is shared choice?

allows employees to have choices for their compensation letting an employee choose between different pay mixes such as offering a work life balance pay mix option and a performance driven pay mix. - One risk is employees make the "wrong" choice - Offering too many choices may lead to confusion, mistakes, and dissatisfaction

how do some employees validate their job evaluation results?

by using market surveys to compare their results to what competitors are paying similar jobs. some employers even go straight to market surveys to establish their own pay structures - "market pricing" = mimicking competitor's pay structures.

what is Broad Banding?

collapses salary grades into only a few broad bands, each with a sizable range. Consolidates 4 or 5 traditional grades into a single band with a minimum and maximum - Provides flexibility to broadly define job responsibilities ex) 5 grades becomes 2 bands

----------- are based on strategic direction and how the work contributes to these objectives and strategy.?

compensable factors

what are some theories about labor demand?

compensating differentials = work with negative characteristics requires HIGHER PAY to attract workers efficiency wage = above market wages will improve efficiency by attracting workers who perform better signaling = pay policies signal the kinds of behavior the employer seeks.

This type of structure looks at work performed within org

competency based pay structures

why use an outside consulting firm for market surveys?

consulting firms offer a choice of ongoing surveys and offer clients access to survey databases. the use of consulting firms gives organizations protection from possible price fixing lawsuits

how to calculate point value?

degree x weight

what is variation?

distribution of rates around the central tendency is variation. How far apart your data points are from a relative central tendency.

what are salary levels for grades in a pay structure?

each pay grade (which contain multiple jobs) is given a: -maximum pay (upper limit) -minimum pay (lower limit) - midpoint (the PAY POLICY LINE should travel through the midpoints of each pay grade.

what do you call an organizations pay relative to its competitiors?

external competitiveness

regression

generates a straight line that best fits the data by minimizing variance around the line. As the number of jobs in the survey increases, the advantages of the straight line regression provides becomes clear.

what is grade overlap?

grade overlap is okay! we want to have a decent amount of grade overlap to induce employees to seek promotion.

what is frequency distribution?

highlights outliers in survey data, helps visualize information

what are the two types of labor markets?

internal & external internal: hire from within external: outside of company

what is Marginal Revenue of Labor?

it is the ADDITIONAL REVENUE generated from employing one additional person, with other factors held constant. employers will hire until... marginal revenue = the cost of employing that person

What are pay grades?

located on the X axis group jobs for pay policy application, usually based on similar compensable factors and value, same relative internal worth - all jobs within a particular grade are paid the same rate or within the same rate range ex) grade 1: holds jobs A&B grade 2: holds jobs C,D,E,F ... Grades allow people to move among jobs with no wage change!!!

what are competency based structures?

looks at the WORK PERFORMED in the organization. Identify the competencies employees need to master to be eligible for pay raises.

what type of job evaluation method looks at similar jobs in the marketplace?

market pricing

how to select a relevant market competitor?

orgs who compete in: - same occupation/skills -hire employees in the same area as you (geographic area) -same products/ services those 3 factors make up a relevant market competitor

what is External Competitiveness ?

pay relationships among organizations. An organization's pay relative to its competitors.

what are the 2 aspects of a pay structure?

pay structure aspects: 1. the pay policy line 2. pay ranges

Labor supply is:

people who are 1. seeking jobs 2. possess accurate information about all job openings 3. have no barriers to mobility the supply of people willing and able to work

Job Evaluation Content

refers to: -WHAT work is performed and HOW it gets done. Internal alignment based on content: orders jobs by: -skills -duties -responsibilities.

what are some theories about labor supply?

reservation wage = job seekers won't accept jobs whose pay is below a certain wage, no matter how attractive other aspects of the job are. -pay level WILL affect the ability to recruit human capital = the value of individual's skills and abilities is a FUNCTION of the time & expense required to acquire them. -higher pay is REQUIRED to induce people to train for difficult jobs.

What type of pay looks at depth and growth of skills knowledge abilities

skill based pay structure

what are pay mix strategies?

strategies used by an organization to attract employees by offering attractive mixes of pay some include: -Performance driven pay mix: 50% of total compensation being base pay, and benefits & bonuses 17%, stock options 16% (incentives & stock ownership make up a great percentage in performance driven policies) -market match pay mix: 70% is base pay, benefits make up 20%, bonuses & stock options making up 10% (simply mimics the pay mix of competitiors. -work life balance pay mix: 50% base pay 30% benefits, bonuses 10%, stock options 10% security / commitment pay mix: 80% base pay, 20% benefits

define supply & demand for labor markets

supply of labor = looks at potential employees demand of labor = focuses on the actions of employers

what is Marginal Product of Labor?

the ADDITIONAL OUTPUT associated with the employment of ONE ADDITIONAL person, with other production factors held constant.

define Pay Level

the average of the array of rates an employer pays.

what is a Hit Rate?

the degree to which the evaluation plan matches an agreed upon pay structure for benchmark jobs.

what level of demand MAXIMIZES profits?

the level of demand where marginal revenue = the WAGE for that hire

define Pay Mix

the various types of payments, or pay forms, that make up total compensation.

explain diminishing marginal productivity:

this is the idea that as a company hires on more and more employees, the added output those employees produce for the company goes down and down as more are hired. Until production factors change, each new hire produces less than the previous hire.

what does it mean to be an employer of choice?

this means that an employer that offers a fantastic work culture and workplace environment that attracts and retains superior employees on its won due to its BRAND or IMAGE people WANT to work for you just based on the culture, brand and image employer of choice organizations compete based on overall reputation.

what is the purpose of a survey?

to adjust pay level in RESPONSE to rates paid by COMPETITORS surveys help: - set a MIIX of pay forms - establish a price or PAY STRUCTURE - to analyze pay-related problems

what is offshoring?

work flowing to lower wage locations or across national borders