Employee Compensation and Benefits

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Employee Compensation and Benefits|
Patrick Blackwater|
Grand Canyon University – MGT 434|


Human Resource Management is responsible from developing job and pay structures for internal and external comparison so accurate job descriptions are developed and evaluations can be done so proper pay scales can be implemented. Job structure is a comparison of employee job descriptions of similar and varied jobs (Robbins, 2005). Pay structure is based on internal and external comparisons to develop employee pay for different job details. Job and pay structure are also a good incentive for human Resources to manage employees and their performance (Noe, 2013). From the website, Salary Wizard, three comparisons were done to evaluate the difference between the same job titles but different levels: Software Engineer I, II, and III from the zip code 85017. They have the same basic job description and education level but with increased years of work experience so did job levels. With increased levels, the amount of work experience, knowledge, and responsibility also increased. This also includes the amount of latitude and decision making skills required to be considered for different job details and pay scales and are based on education levels, years of experience, company size, and the industry of the demographics (swz.salary.com). The pay structure is based on an employee’s job evaluation and all compensable factors and can be determined by job evaluation first, then by a three pay setting scale and some have a set salary scale. Another way to determine pay is based on market rates and have more emphasis on internal comparisons but cannot be used for key jobs: the Pay Policy Line. Pay grades are also used to determine pay scales by an evaluation grading scale: minimum, maximum, and midpoint (Noe, 2013). The job and pay structures are important to creating compensation policies that reflect pay appraisal. So...
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