Sound Wage and salary administration demands some essentials to satisfy, so that one who is shoulder with the responsibility of designing administrative aspects with this regards, may come out with efficient system for managing the issues related with it. Some of the pre requisites for the sound compensation system are:

I. Rational Job Analysis

II. Proper Job Evaluation

III. Depth Knowledge about an Organization and Market Factors

IV. Clarity of Objectives or Purposes of Wage and Salary Administration