Establishing Pay Rates

 

When it comes to any company like GWC Valve International, establishing pay rates that are both externally and internally equitable requires three stages such as evaluating jobs, conducting wage salary surveys and combining the two pieces of information to determine the pay for everyone’s jobs.

The first step is the job evaluation, which involves a systematic comparison in order to be able to determine the relative worth of ones job within the firm. When it comes to a job evaluation, it usually focuses on benchmark jobs, which is a firms operation that is commonly found in several other organizations. Compensable factors involve having a fundamental, compensable element of a job, which involves skills, effort and responsibility and working conditions. Most of the pay equity acts focus on these four compensable factors. Every job in each employee group, department or business unit gets evaluated based on the four compensable factors in order to determine the job evaluation. There is even a job evaluation committee, which involves a diverse group of individuals, which include mangers, human resource managers, and union representatives who all come together to ensure the fair and comprehensive representation of the nature and requirements of the jobs in question. If this isn’t enough, there is even a classification method and a point method to determine the job evaluation. The classification method involves a grading method where the groups are called classes if they contain similar jobs or grades if they contain jobs that are similar in difficulty. Point method is a widely used method in the private sector and it require identifying several compensable factors such and it then gets a corresponding number of points for each factor.

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The second step involves to conduct a wage and salary survey by using survey data to determine pay rates for benchmark jobs, then reviewing the marketplace and comparing how much other workers in the same department get paid, then also more surveys on employee benefits, work-life program and more. Stage three involves combining all of the job evaluation and salary survey information in order to determine the pay for the different jobs in the organization.