A pay structure ( ساخت ) is an assortment of compensation grades, levels or groups that connection related positions ( عہدوں ) inside a progressive system or series. It gives a system to carry out remuneration ( پارشرمک ) methodologies and strategies (حکمت عملی ) These are interest and supply of work, average cost for many everyday items, society, trade guilds, regulation, economy and pay overview.
Geographic Differences
The cost of labor is a function of supply and demand, among (درمیان) many other factors. When local supply of labor falls short of demand, wages will increase. Conversely if the local labor supply exceeds demand, wages ( اجرت ) will decrease
Labor Supply
When unemployment ( بے روزگاری ) rates are low, employers must work harder to attract ( اپنی طرف متوجہ ) qualified workers. This often includes raising wages or increasing benefits to tempt workers to leave their current employment and apply. When unemployment rates are high, wages tend to be depressed because employers have a plentiful (بھرپور) supply of applicants. Employers may also encounter situations where there is an oversupply of workers with one set of skills, such as framing carpenters (بڑھئی) , but a shortage of workers with another set of skills, such as welders. This would require a higher starting salary to attract workers with the correct skills.
Competition
Just as an organization must consider competition when setting prices for goods and services, they must consider the influence ( اثر و رسوخ ) of competition on wages. When setting a policy on how to react to competition wages, HR professionals have three choices
● Match
● Lead
● Lag
Cost of Living
Inflation raises the price of consumer ( صارف ) goods and reduces the buying power of wages in real terms. As the CPI increases, wages must also increase to allow workers to maintain their standard of living.
Collective Bargaining
The major function of most unions or collective bargaining ( سودے بازی ) units is to negotiate ( گفت و شنید) for the wages of its members. Organizations covered by collective bargaining agreements tend to have higher wages and better benefits than similar employers that do not have unions. The biggest impact is typically ( عام طور پر ) for unskilled or semi‐skilled middle to lower income employees.
The Pay Structure
Job Evaluation
Systematically determining the value of each job in relation to all other jobs in the organization.
Ranking Method
Ranking job worth from highest to lowest.
Classification Method
Evaluating jobs based on predetermined job(پہلے سے طے شدہ کام) grades. The classification method requires that classification grades be created by identifying some common denominator—skills, knowledge, responsibilities—to create distinct classifications of jobs
Point Method
HR develops a point method by breaking jobs down into categories such as education, skill, effort, responsibility, and working conditions. Points are assigned ( تفویض ) to each category based on the importance of the criteria ( معیار ) to successful performance of the job. Points may be weighted ( وزنی ) more heavily if increased education, skill, or experience is required for the position. Pay grades or ranges are assigned to jobs based on the total number of points.
Establishing the Pay Structure
Compensation Surveys
Used to gather (جمع) factual data on pay practices among firms and companies within specific communities.
Wage Structure
A pay scale showing ranges of pay within each grade.
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