Discuss the main factors which affect the job values or pay structures?
The main factors which effect the job values or pay structures are either market rates, negotiated pay. scales or internal relatives and equity.
Market rates make the job worth. For any organization to hold employees have to keep pace with the market rates. Mist of the employees expect to get paid at least as much as he or she made in his or her last position. If he is currently working and looking to make a change more than likely he wants to get paid more than he is making at point of time. This is perfectly natural. The question of pay rate doesn’t rest solely on what one wants or need, it rests also on what the hiring company is willing to pay. What companies are willing to pay is influenced by the going market range in ones area.
Here are a few ways to conduct salary comparison research:
- Search on-line job postings and classified ads to see what pay rates are being advertised for different levels of experience. Go to a website like salary.com. These sites not only help one to determine the rate for a particular functional level. They also take geographic location into consideration.
- Contact a local staffing firm that specializes in ones area of expertise and ask them for insight into the market pay rates at ones level of experience.
- Talk with people knows who work in industry or functional area.
Think about what pay range you’re willing to accept with this information in mind. Make sure you take into consideration the level of experience and required education in your salary comparison. Compare apples to apples.
Negotiated Pay Scales:
It is not so easy to find ways of negotiations regarding pay scales. It’s difficult to make definite statements about what to do and what not to do in every negotiation situation, there are some definite pitfalls to be aware of before entering the negotiation process. The appropriate time to negotiate is when a formal offer has been made. There’s nothing wrong with asking for time to consider the offer or outright asking if the offer is negotiable. White money is the most frequently negotiated piece but other parts of the package may be negotiable. They include signing bonuses, unpaid leave,relocation, expenses, flextime, severance, and predetermined time-frames for salary reviews.
The fact is many companies have a predetermined budget for every position and have pay ranges and benefit packages based on their established compensation hierarchies. Having significant work experience will probably carry more weight than a degree alone. No matter what you bring to the negotiating table, it’s naive to assume you’ll always get what you want. Negotiating isn’t a win-lose proposition, it’s a compromise and you should expect that going into discussions.
Internal Relativities and Equity:
The relative skill and responsibility of, job is the direct outcome of the pay structure. They should project the equity so that the person employed should feel that the amount of incentives they are getting are in sink which their kind of work output and with others doing similar jobs in other organizations in relation to their output. Thus the job evaluation forms two dimensional relationship that is vertical type where within an organization where basic skill is similar and lateral type of relationship where jobs of different nature exists.