The Big Book of HR, Revised and Updated Edition

19

Developing a Salary Structure

BY MARY JANE SINCLAIR, SPHR

I worked at a company that conducted an employee opinion survey. One question asked if employees thought they were paid high, low, or average. The cumulative results correlated exactly with the salary survey results. In jobs where the salary surveys indicated that average salary was high relative to the market, the average employee responded that they were well paid. In jobs where the average salary was low relative to the market, employees responded that they were not paid well. My conclusion is that people have a pretty good sense of how well they are paid.

If you are about to develop and implement a salary structure, there are a few fundamental questions to be answered before you ...