Determining competitive pay is like cooking something using a recipe. If you follow the directions, then it should be good. However, if you forget an ingredient or use too much or too little...well, there's no telling what you'll get.
Conduct academic research on current pay practices, such base pay, salary, differentials, team pay, incentives, piece rate, bonuses, commissions, executive pay and pay for performance, etc. Select one of these practices and explain what it is and when it is used. Then, explain your experiences as an employee accepting a new position and if you think the pay was fair for the position and your qualifications.