The Compensation Structure
Jobs evaluation systems provide for internal equity and serve as the basis for wage rate determination. They do not in themselves determine the wage rate. The evaluate worth of each job in terms of its rake, class, points, or monetary worth must be converted into an hourly, daily, weekly, or monthly wage rate. The compensation tool used to help set wages is the wage and salary survey.
Wage and salary surveys
The wage and salary survey as a survey of the wages paid by employers in an organization's relevant labor market- local, regional or national, depending on the job. The labor market is frequently defined at the area from which employers obtain certain types of workers. The labor market for office personnel would be local, whereas as the labor market engineers would be national. It is the wage and salary survey that permits an organization to maintain external equity- that is, to pay its employees wages equivalent to the wages similar employees earn in other establishments