MGT
7. Designing Pay Levels, Mix, and Pay Structures (Ch 8) Part 1.pptx

7. Designing Pay Levels, Mix, and Pay Structures (Ch 8) Part 1.pptx

Info icon This preview shows pages 1–6. Sign up to view the full content.

DESIGNING PAY LEVELS, MIX, AND PAY STRUCTURES PART 1 Chapter 8
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Chapter 7 : market and organizational factors that influence pay policies Chapter 8 : tools and strategies used to determine pay levels, mix of forms, and structures In Context
Image of page 2
Road Map 1. Specify the employer’s competitive pay policy 2. Define the purpose of the survey 3. Select relevant market competitors 4. Design the survey 5. Interpret survey results and construct the market line 6. Construct the pay policy line that reflects external policy 7. Balance competitiveness with internal alignment (ranges, flat rates, and/or bands)
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

EXHIBIT 8.1 Determining Externally Competitive Pay Levels and Structures These are the major decisions in setting externally competitive pay and designing the corresponding pay structures.
Image of page 4
1. Specify Pay Policy Covered in Chapter 7 : 1. Pay above market (lead) 2. Pay with market (match) 3. Pay below market (lag) 4. Hybrid policy Base pay is targeted at the 45 th percentile …while target total cash compensation (which includes an annual bonus that incorporates aggressive financial targets) is set to the 65 th percentile of the market… Long-term compensation is set at the 50 th percentile …Although not targeted to a specific competitive level, we believe our benefits …are at the market median
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 6
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '08
  • Staff
  • pay policy, Select Relevant Market

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern