Fair compensation is important to all employees. Strategic compensation positioning is essential to an organization. Positioning the organization properly within the job market influences the number and quality job applicants. Determining the how to set pay is part of the human resources (HR) compensation discipline.
You are an HR professional meeting with senior leaders to inform them of the process.
Address the following considerations for establishing pay strategy:
- Discuss the process for establishing pay rates for different positions within an organization.
- Explain how strategic compensation ties to the organizations' strategic HR goals.
- Describe the options an organization has in determining ranges and rates for pay.