The design process is started by identifying desired outcomes and goals for your organization. This is often referred to as developing your compensation philosophy. Your philosophy is formed by considering a number of factors. The balance of direct and indirect rewards, the complexity and responsibility of a role and the candidate or employee filling it, as well as your focus on internal versus external equity are just few factors explored in this section. It is the ability to achieve results that is critical to organizational success.

Establishing equal pay for work of equal worth and acceptable pay differentials for work of unequal worth

Includes fairness of procedures used to establish pay structure, organizational design and flow of work

Design procedures & establish pay structures that

• Assist to achieve organizational objectives• Are acceptable to employees and managers• Comply with laws and regulations

Array of pay rates for different work or skills within a single organization:

Levels Differentials Criteria Number of Levels Pay differentials among levels Criteria is used to support structure

Undertake training Increase experience Reduce turnover Facilitate career progression Facilitate performance Reduce pay related grievances Reduce pay related work stoppages

The systematic process of collecting relevant, work-related information related to the nature of a specific job

Why?????????? Internal consistency Compensation Other reasons

For compensation-Decide Value Job Info- ID, Define , describe Job Title-Importance, Place in org’n Task or work data Methods & Techniques Products & services that result Worker data Behavioral data Abilities data

Questionnaire Checklist Diary Observation Activity sampling Activity Matrix Critical incidents