Internal Equity Is Based On Education Essay

772 Words Mar 22nd, 2015 4 Pages
Internal equity is based on education, experience, physical demands, responsibilities, and working conditions. Ranking jobs within the organization need to be consistent with job descriptions. It is important to the organizations design and the compensation structure. To achieve internal equity the pay needs to be related to the value of the work being performed. Internal equity is about the pay relationships between different jobs, skills, and competencies within the organization (Milkovich, 2014). It is how employees see their responsibilities, rewards, working conditions, and compare it to similar positions. The pay must be fair to achieve internal equity and show value and worth. It plays a vital role in the organizations design and compensation structure. Employees want equal pay for equal work.
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 work. The result of job analysis is creating job descriptions that are based on the job and explaining what work is to be performed. Job specification is based on an employee’s knowledge, skills, abilities, and experience (Milkovich, 2014). Job evaluation determines the worth of jobs to the…

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