To motivate workers, pay systems must also send messages that are in line with the values and expectations of employees. These expectations and values are primarily a product of culture. There are 4 basic components of pay: 1. base pay, 2. experience pay, 3. results-based variable pay, and 4. behavior-based variable pay. The steps to building a pay plan are: 1. Define basic employee groups. 2. Define a strategic role for each basic employee group. 3. Determine the appropriate total compensation for each employee group. 4. Determine how to weigh each pay component for each basic employee group. 5. Determine base pay levels. 6. Determine the role of experience pay. 7. Design and implement variable pay plans where appropriate.