Compensation & Benefits
Wages and Salaries
When determining what your organization will pay for wages and salaries, it is important to understand the economic conditions of the region in which you function, the volume of potential employees and the legislative requirements in place. When determining what to pay, first consideration is placement of the role organizationally which can be determined through job evaluation/classification. The second consideration is the job relevant skills and experience the applicant possesses which may impact their placement in the salary range upon hire.
In this Section:
Deciding what to pay
Approaches and techniques to determining base pay
Pay increases, bonus and incentive plans
Communicating wage and salary information
Deciding what to pay
They are many situations in which you will be faced with deciding what to pay an employee.
• A new hire
• An existing employee due for an increase
• An existing employee moving into a new role
• A valuable employee who is considering leaving because of compensation
• Market conditions
• Scarce skill