Interindustry wage differentials is an important concept to


Interindustry wage differentials is an important concept to understand. It deals with the patterns we see in pay and benefits across positions in similar industries. Many factors can affect wages within an industry including unionization, market competition, etc. Some organizations will adjust their wages for employees based upon comparisons within the industry. A term commonly referred to as leveling, but goes hand in hand with inderindustry wage differentials. Organizations will sometimes conduct analysis based on leveling. Leveling is a term used when companies take a look at individuals with similar titles in similar positions at other companies and compare compensation. Analysis is done based on the type of job and position to determine if a company is offering a competitive salary based on the position and responsibilities. If the position is determined to be under compensated a company will adjust the pay rate to make the position more competitive with similar positions in other companies. Have you had experience with leveling? What are your thought on this process?

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