Integrating Internal Job Structures with External Market Pay Rates
3 Describe how compensation professionals integrate internal job structures with external market pay rates.
In Chapter 6, we discussed that compensation professionals use job evaluation methods to establish internally consistent job structures. In other words, companies value jobs that possess higher degrees of compensable factors (e.g., 10 years of relevant work experience) than jobs with fewer degrees of compensable factors (e.g., 1 year of relevant work experience). These valuation differences ultimately should correspond to pay differences based on compensation survey data.
Earlier, we indicated that paying well below or well above the typical market rate for jobs can create ...
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