Do you have any employees earning more than the job is worth? Do you have new employees starting at higher pay rates than employees who have been in the same job for a few years? Employees react more negatively to being paid unfairly compared to co-workers than to the pay rates offered by other companies. On our survey one compensation related question is “As far as you know, are you paid fairly compared to others in your department?” What do you think is the average percentage favorable response?
a. 51%
b. 61%
c. 71%
d. 81%
Choose one on the poll to the right and click the link below to check your answer.
The answer is 71% favorable. How would your employees respond?
If you believe it would be less favorable, then we suggest that you:
1. Evaluate the jobs using an objective methodology. (We typically use a point system.)
2. Group the jobs into pay grades based on the results of the evaluation.
3. Create pay ranges for each grade that the Company can afford and are competitive with the labor market.
4. Establish pay policies whereby the new pay plan is properly implemented and maintained.
A structured pay plan will not only ensure internal equity of pay, but will also control payroll costs.
"The Survey Says" is written by Richard Reinhardt, Vice President of F&H Solutions Group. You may contact Richard by email at rreinhardt@fhsolutionsgroup.com or by phone at 901.291.1546.
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