Compensation decision making analysis Essay Example | Topics and Well Written Essays - 500 words

Compensation decision making analysis - Essay eventAlso, in developing a compensation survey, it is besides possible that employees needed to satiate one image of benchmark job are in demand in certain labor markets, and employees needed to fill another benchmark job are in demand in other labor markets. For both(prenominal) of these reasons, namely that we may be competing with several(predicate) judicatures in different labor markets for one type of employee, and also that we may compete with different government activitys in different labor markets for one job in the organization versus another, organizations must relate to a variety of labor markets when conducting a compensation survey.The process begins by tone at which profit areas are the most critical for the organization. In other words, it is looking at where the organization seems to be less effective in competing in the external market. An important indicator of a line may be the inability to hire qualified app licants and/or high turn-over rates. These are common indicators that the comprise set for that job may not be competitive. Another possible indicator of a business could be low productivity or poor quality.Often the organization decides that it is best to use different job evaluation methods for different groupings of jobs in the organization. When gift is set, the scatter diagrams are usually different and the pay policy line and the y-intercept as well. For this reason an organization may have much than one pay structure.This can occur, for example, when the organization develops one pay structure for upper management and another for lower train employees. In the situation where an organization has more than one pay structure, it is important that questions of fairness are addressed.In general, the amount of overlap should reflect how similar the jobs are to each other the more similar the jobs, the more overlap there should be, the less similar the jobs, the less