Salary Structures and Pay Delivery

Interactive Exercise

Many factors influence an individual's compensation, including the following:

• individual's skills and performance
• organization's pay structure
• internal pay rates of comparable employees
• external market conditions

This exercise will concentrate on external market conditions. When market pricing benchmark jobs, you should know how to identify competitive pay for your organization's jobs.

This exercise will use specific factors that may be used to help define your labor market:

1. occupation
2. industry
3. geographic area

We will also consider other issues (like experience and skill) that may be taken into account when comparing pay externally.