Selecting and Developing a Salary Structure
Salary structures provide the framework for managing pay effectively. It is important to get them right because they support the achievement of business goals and sustained competitive advantage. They do this in four ways. First, they ensure that pay levels in the structure compare favorably with market rates and thus enable the organization to get and keep the talented people it needs. Second, any efforts made to achieve pay equity can create employee job satisfaction and therefore increase productivity. Third, salary structures can help to increase levels of employee motivation and engagement by providing scope for salary progression through performance pay. Finally, ...