Internal alignment
Comparisons among jobs or skill levels and organizational contribution inside one organization
Pay rates for those doing equal work and for those doing dissimilar work (engineers vs. programmers; CEOs vs. managers)
Retention, fairness, compliance (e.g., discrimination, race, sex)
External competitiveness
Pay comparisons with competitors
How much should we pay compared to others? (Pay Levels)
What forms of pay should we use? (Pay Mix)
Lower, matching or higher than market rates (percentile)
Attraction & Retention, efficiency (labor cost control)