After studying this chapter, you should be able to:
List the basic factors in determining pay rates.
Explain in detail how to establish pay rates.
Explain how to price managerial and professional jobs.
Discuss competency-based pay and other current trends in compensation.
Basic Factors in Determining Pay Rates Direct Financial Payments Indirect Financial Payments Employee Compensation
Legal Considerations in Compensation Employee Compensation Equal Pay Act (1963) Employee Retirement Income Security Act (ERISA) Age Discrimination in Employment Act Americans with Disabilities Act Davis-Bacon Act (1931) Walsh-Healey Public Contract Act (1936) Title VII of the 1964 Civil Rights Act Fair Labor Standards Act (1938) The Family and Medical Leave Act The Social Security Act of 1935 (as amended) Workers’ Compensation
Equity and Its Impact on Pay Rates External Equity Procedural Equity Internal Equity Individual Equity Forms of Equity
Addressing Equity Issues Salary Surveys Job Analysis and Job Evaluation Performance Appraisal and Incentive Pay Communications, Grievance Mechanisms, and Employees’ Participation Methods to Address Equity Issues
The Salary Survey To price benchmark jobs To make decisions about benefits Step 1. The Wage Survey: Uses for Salary Surveys To market-price wages for jobs
Sources for Salary Surveys Employer Self-Conducted Surveys Government Agencies Consulting Firms Sources of Wage and Salary Information Professional Associations The Internet