The Mechanics of Job Pricing
First step involved in setting monetary rates for jobs.
What is established pay policy guide lines?
Construct trend lines that show the progression through the series of pay rates for key jobs in the labor market.
What is second step in job pricing?
The determination of job classes is considered to be part of this.
What is the pricing process?
The difference between minimum and maximum rates of pay for a given job class.
What is a salary rate range or class range?
Development of a system where by periodic increases in salary can be awarded to employees.
What is the final step in pricing job structure?
When the initial decision is made to implement a compensation program.
What is pay policy guidelines?
Illustrate graphically how an organization current comp plan compares with the market.
What is the purpose of this analysis?
This is all jobs within that class are covered by the same range of pay.
What is one of the key features of a job class?
Permit organizations to recognize individual differences in performing a job and reward employees on the bases of these differences.
What is salary ranges?
What is periodic step increases and merit progression.
Pay what the market is paying.
What is follow?
Ranking, classification, and factor comparison.
What is used for job evaluations?
Because of seniority, performance, or other factors.
What is precise amounts paid to specific job holders?
The internal needs and requirements of the organizations plus what is happening in the labor market.
What is two sets of factors to construct salary ranges?
Provide for fixed dollar adjustments in salary.
What is step increases?
Pay in excess of what the market is paying.
What is lead?
The first step in analyzing the data, relating survey salary figures for each key job to the job evaluation points that have been assigned by the organization.
What is a scattered diagram?
It is much more convenient to price 10 or 12 job classes than it is to set individual rates for 50 or 60 different jobs.
What is why job classes are commonly used in compensation systems?
A salary currently being paid that falls outside the top limit of the pay range.
What is a red circle rate?
Provides organizations with a new approach to job pricing.
What is broadbanding?
Pay less then what the market is paying.
What is lag?
What is usually called a salary curve or a wage curve?
The precise number of classes to use as a practical matter for any pay structure.
What is 8 to 14 classes?
What is a green circle rate?
Workers are paid not simply for the job that may be performing presently, but on the basis of the number of other jobs they can perform or the basis of the depth of knowledge they have acquired.
What is skill / competency - based pay structure?