Professional Documents
Culture Documents
Describe The Challenges in Developing Compensations That Are Both Internally Consistent and Market Competitive
Describe The Challenges in Developing Compensations That Are Both Internally Consistent and Market Competitive
job analysis results directly aid compensation professionals in their pay-setting decisions by
differences between job content and worker requirements. Job content refers to the actual job
duties and task that employees must perform on the job. Worker requirements are the minimum
qualifications and skills that people must have to perform a particular job. Job evaluation partly
reflects the values and priorities that management places on various positions. Some
responsibility, and working conditions are some of the compensable factors that companies take
into consideration.
Describe the challenges in developing compensations that are both internally consistent and
market competitive.
Internally consistent compensation systems are what allow a company to develop relative
pay scales. A relative pay scale means that jobs within the company pay different rates in
comparison to other jobs within the same company. The means by which these internally
consistent compensation systems are developed are rooted in simple principles and requisites.
Jobs that require a person to possess a higher level of education, experience, or skill will be
assigned a higher wage than jobs requiring less of these requirements. Other factors affecting the
relative pay of a job within the company include job complexity and the level of responsibility.
These different job characteristics are formally recognized within the internally consistent
compensation structure, and allow compensation managers to establish a pay scale that fairly