Looking to Benchmark Pay?
Introduction
Organizations often have a wide range of discretion in setting salary levels. Although they typically seek out and use information on what other employers pay, this information is only one of the determinants of salary levels.
This course provides a framework for evaluating salary determinants and the manner in which they may be used. Not all salary-level determinants are covered in this course, but it is hoped that enough are presented here to illustrate the process used and the factors considered when an organization decides how much to pay.
Course Overview
Numerous forces operate as wage determinants. In this course, we will look first at how economic forces influence pay. Then we will compare an employer's ability to pay (what they can afford) with their willingness to pay (what they feel they must pay to compete for talent). As part of this discussion, we will look at how unions view employer ability to pay and factor this into contract negotiations. We will also consider issues such as productivity, cost of living, inflation, and employee acceptance.