ESTABLISHING A PAY STRUCTURE


Concept and brief description:

Along with managing and motivating a team, the way an organization pays its employees is also very important. A company should have a pay plan which includes a job structure, a pay level plan, and a pay structure.

Moreover, the law requires a company to follows certain regulations. For example, the pay may be equal for equal jobs inside the company. The salary must be equal or higher than the minimum wage ($5.15 per hour), and every hour beyond 40 hours a week should be paid as overtime.

As the payroll is one of the highest expenses of an organization, it has to be planned according to the goals of the company. It has to be balanced in order to keep the price and the products competitive. In order to keep the employees as long as possible in the company, the average salary should be in the average of the industry.

Finally the pay should be adapted to the size of the company, to the range of the products sold, to the qualification of the employees, to the market previsions, and to the positioning of the company in the market.

Emotional hook:

Usually work force looks for higher salaries. If a qualified or non-qualified work force finds a company which pays more than the company they work for, the chances are that the workers are going to try to join that company.

Key to elicit discussions:

If a company wants to motivate its labor force and keep them in the organization as long as possible, the salaries have to bed adapted and attracting. Most workers are going to take the job which offers the highest salary.

Facilitative questions:

How can a company make sure that the salaries are up to the expectations of its workers and if the wages offered are attracting enough?