Determining Internal and External Pay Factors
There are many factors that influence a company’s salaries. Managers responsible for determining salaries take many different elements into account, based on the philosophies and resources of their organizations and on external market. Effective management can balance these factors to create a pay structure that is fair, feasible, and attractive to potential employees.
- Forms of market compensation policies
- Reasons for instituting these forms
- Other external factors that may determine employee pay