Setting Pay
Key Concepts
Setting pay for a new organization can be a daunting task because there are few organizations to compare the wages with. The pay set should favor both the employer and the employees hence the need to agree on the best terms possible with the job descriptions put together. The bible says, “And as you wish that others would do to you, do so to them” (Luke 6:31). It, therefore, means that an employer must come up with the compensation that commensurates the quality and kind of output expected. The higher the compensation, the more senior the production; hence, the more profitable a company can be. Well-paid employees are likely to dedicate their effort to an organization’s success.
One of the key concepts is that developing a formal salary structure for jobs that are not comparable requires thorough research from various sources such as online, government statistics, online sources, and professional advice. It is never easy to find meaningful data that can help in developing a good compensation plan. Besides, while comparing data from other sources, it is essential to highlight inconsistencies that do not match the intended positions. Care must always be taken to avoid the higher cost of compensation surveys; however, it should not be used as an excuse for setting the right pay for an organization.
Recommendations
Setting pay is a daunting task for any organization hence the need to form an able team that can come up with the correct data which can help in setting compensation. While setting the pay, the organization’s philosophy must be taken into account to ensure that the decision made aligns with the business needs. Data used must be reliable and up-to-date to reflect the accurate and fair depiction of what happens in other organizations.
References
Sammer, J. (2013, May 1). The Art of Setting Pay. SHRM.