Compensation Structure

A medium-sized organization with 2000 employees in total and a complete range of 325 different positions, an analyst at the present salaries and wages complex problems.

The existence of 325 different levels of compensation would be meaningless because of differences in income is very complex and would be distributed in a wide range of low wages. The analysts consider the most appropriate compensation amalgamating different positions in job categories.

When you set too many hierarchical levels are hampering the goal of establishing groups and also if the hierarchy are very few functions that will be very different given the same importance compensation. The problem that presents the rates for each category is one that can not be encouraged performance. To motivate an employee is required to pass to the next level wage, which would break all the internal balance established by job evaluation. Most companies used to pay certain ranges for each category to solve these problems.

As you create new posts in the organization, the area of wages and salaries of personnel department conducts evaluations of new posts. Based on these evaluations will find the new post in the appropriate category. If margins are used to pay wages for each category, it is desirable that the new employee compensation is located at the lower level of performance until it is appropriate (through the performance) placed on a higher level