Grh Fiche de RéVisions Essay

6191 Words Feb 26th, 2016 25 Pages
Class 7

Compensating Employees Fairly

Three basic principles to make decisions concerning salary * Internal job consistency: compensation must reflect the of a job compared to other jobs wthin the organization, in terms of required qualifications, responsabilities, effort and working conditions * External salary competitiveness: salaries a company offers must be comparable to those offered by its competitors * Employee motivation and mobilization: compensation must be motivating in order to encourage performance and loyalty

Manager’s Role: * To understand compensation principles * To possess adequate knowledge of the positions managed * To ensure equity, an important factor in compensation
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Following recommendations of the Québec Pay Equity Act, it takes into account: qualifications and experience required, responsabilities, intellectual and physical effort, and working conditions

* External equity is equity with respect to salaries for similar jobs in different organisations * Salary surveys * Salary ranges * Individual equity is equity with respect to salaries for individuals * Salaries are compared using four criteria: * Individual performance * Competency * Seniority * Experience * Collective equity is equity with respect to the compensation received by different groups of employees in the organisation * Compensation takes into consideration * The group’s contribution to the success of the organisation

Setting base salary: a step-by-step process

* (internal equity) Job analysis job description job evaluation (external equity) choose benchmark salary survey salary positioning salary ranges * Choose a benchmark: choose type of organisation to compare with (market? Location? Size? ). Benchmark market: represents a group of companies a

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