January 2015
Beginner
480 pages
32h 52m
English
As we said, many firms simply price their jobs based on what other employers are paying—they use a market-based approach. However, most employers also base their pay plans on job evaluations. In a market-competitive pay plan, a job’s compensation reflects the job’s value in the company, as well as what other employers are paying for similar jobs in the marketplace. Because the point method (or “point-factor method”) is so popular, we’ll use it as the centerpiece of our step-by-step example for creating a market-competitive pay plan. 119 The 16 steps in creating a market-competitive pay plan begin with choosing benchmark jobs.