There are several definitions of perquisites; perhaps the most common is “Any monetary or other incidental benefit beyond salary; a gratuity; a privilege or possession held or claimed exclusively by a certain person, group or class.” These are some of…
Pay Structure After an organization has determined its relative internal job values (i.e., job evaluation and collected appropriate market survey data through pay surveys, work begins on developing the organization’s pay structure, including creating pay grades and establishing pay ranges.…
Market-Based (External) Job Evaluation. A market-rate system is not a true job evaluation system; however, in certain cases, market value can be used to price jobs— particularly when the organization is sensitive to competition. These prevailing rates are used to…
The compensation system design process includes four key activities: job analysis, job documentation, job evaluation, and pay structure. Job Analysis Before we address the process of job analysis, we should first address what is a job. A job may be…
The Challenges of Transparency How much to communicate about pay is a continual debate, one for which there is no clear answer. Those in favor of open communication feel that unless employees understand their organization’s pay system and how their…
A typical total rewards package can include compensation, benefits, work-life balance, performance and recognition, personal development, and career opportunities. Recent strong global competition for talent and shortages of critical-skill workers, particularly in the fast-growing economies of Asia and Latin America,…
Employee lifecycle (ELC) refers to the various stages of the employment process. It starts with the recruitment and ends with termination. The various stages of the employee lifecycle call for different HR management techniques for individual employees. As an example,…
PEST factors address political, economic, social, and technological factors that may influence an organization’s total rewards strategy. The following examples describe the conditions that may impact total rewards: • Political The head of government or legislative body in control most…
Internal Equity is a situation that results when people feel that performance fairly determines the pay for each individual with a certain job or that relative difficulty results in appropriate differences in pay rates between jobs. Worker dissatisfaction may arise…
Pay equity is not equal access to jobs offered by an employer. This is called employment equity, which means that women, men, and minorities have equal opportunities when applying for jobs. Nor is pay equity the fact that a person…