The main purpose of this chapter is to show you how to establish a pay plan. We explain job evaluation–techniques for finding the relative worth of a job–and how to conduct online and offline salary surveys. We also explain how to price the jobs in your firm by developing pay grades and an overall pay plan. BASIC FACTORS IN DETERMINING PAY RATES Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonueses) and indirect financial payments (financial benefits like employer-paid insurance and vacations). In turn, there are two basic ways to make direct financial payments to employees: base them on increments of time or on performance. 1) Direct financial payments 2) Indirect financial payment Several factors determine the design of any pay plan: legal, union, company strategy and policy, an...
The main purpose of this chapter is to help you be more effective at managing your employees’ careers. We discuss the employee’s, manager’s, and employer’s roles in career development, and the procedures for managing promotions and transfers. We also discuss enhancing diversity through career management, and, finally, the career management steps an employer can take to foster employee commitment. THE BASICS OF CAREER MANAGEMENT We may define career as the “occupational positions a person has had over many years.” We can define career management as a process for enabling employees to better understand and develop their career skills and intertests, and to use these skills and interests most effectively both within the company and after they leave the firm. Caree development is the lifelong series of activities (such as workshops) that contribute to a person’s career exploration, establishment, success, and fulfillment. Career planning is th...