It is like pay structure in that they are basically ranking jobs based on employee output and determining the worth of the jobs. They can either evaluate these jobs by using the ranking method, categorization method, or point/factor systems. They can benchmark these jobs and use different analysis to find what the pay and job structure should look like for their company and if they are paying everyone the right salary for their position. When evaluating their company they need to look at what they want to motivate their employees to be doing. People do what they are incentivized to do, so this is a big step in evaluating their compensation. There are many things that a company can …show more content…
This again will rely on the job structure and who in the company can earn incentives for their output. You have to be careful of agency issues and discrimination laws; because either can be a factor if someone feels they are not getting an equal opportunity of compensation. The company needs to determine what they want employees to get out of their compensation practice. Are they trying to get more employees buy in for the company, increase productivity, or increase employee