Base Wage and Salary Systems. Chapter 13. Learning Objectives. Define base wages and salaries and state the objective of any base wage and salary system. Define job evaluation. Name and briefly discuss the four basic conventional methods of job evaluation.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Define base wages and salaries and state the objective of any base wage and salary system.
Define job evaluation.
Name and briefly discuss the four basic conventional methods of job evaluation.
Explain the concepts of key jobs and compensable factors.
Differentiate between subfactors and degrees.
Explain the purpose of wage and salary surveys.
Discuss wage and salary curves.
Define pay grades and pay ranges.
Explain the concepts of broadbanding, skill-based pay, competency-based pay, market-based pay, and total rewards.
Establishing pay ranges involves two basic phases:
Key jobs (benchmark) represent jobs that are common throughout the industry or in general locale under study
Content of key jobs should be commonly understood
General idea is to select a limited number of key jobs that are representative of entire pay structure and the major kinds of work being evaluated
Weights are assigned on basis of maximum number of points for any job
Points are then assigned to compensable factors, subfactors, and degrees based on their relative importance
After point scale has been agreed on, point values are derived for key jobs using the following steps:
Wage or salary survey information can be obtained in two basic ways:
Conducting your own survey
Purchasing or accessing a wage/salary survey undertaken by another party
Potential sources for relatively inexpensive wage/salary surveys include
Surveys available on the Internet fall into two broad categories:
Surveys conducted by federal government
Surveys conducted by private research organizations, professional associations, employees’ associations, and consulting firms
Assess the participating companies for comparability
Compare more than base wage or salary
Consider variations in job descriptions
Correlate survey data with adjustment periods
Two approaches for establishing pay grades and ranges