Join Edward Lawler III for an in-depth discussion in this video Understanding the market, part of Human Resources: Pay Strategy (2014).
- There is no absolute right about a pay or a way to people.…Very much, it majorly reflect…what your organization is about,…but that is to be in the context of what's going on…in the marketplace because ultimately,…what you're offering to people, from a pay point of view,…needs to be in alignment or better than…what your competitors are offering.…It's a competitive business, if you will,…attracting, retaining the right talent.…It's like any marketplace.…
You need information about what's going on…in a marketplace in order to win in the marketplace.…Depending upon what kind of employee you're looking at,…what kind of talent you're dealing with,…there may be very different sources…of information available about what people are paid,…how they're paid and what you'll need to do to attract them.…If you're in a pretty large corporation…that has a sophisticated compensation department,…they can go to vendors, buy salary data,…tell you what other companies are paying,…give you an idea of what you need to pay…in order to be reasonably positioned in the market.…
- Determine how rewarding performance impacts an employee’s behavior and work performance.
- Identify how pay affects organizational design.
- Define the concept of paying the job.
- Examine the concept of paying the person.
- Determine when to utilize performance appraisals.