Job analysis is used to determine the internal equity of jobs. Employees compare their pay against co-workers pay and employees want to be compensated more if they are doing similar work within the organization. Job analysis has to do with collecting data about jobs and job evaluation is the process of placing value to the jobs. It is important to gather information about the …show more content…
People want to be paid a fair wage and employees want to be compensated accordingly. Difference in pay rates for different jobs and skills influences how fair employees believe they are being treated. When there is a difference in pay employees will want to increase their pay by adding on more responsibilities. This influences how they adapt at different levels within the pay structure. The internal pay structure is an important part of an effective compensation programs and helps ensure that pay levels for groups of jobs are competitive externally and equitable internally (Milkovich, 2014). A pay structure allows management to reward performance and