Trends and Issues: Market-Based Pay Systems

As the number of available compensation surveys grows and labor markets become increasingly dynamic, more and more companies are establishing market-based pay systems to replace other types of job evaluation systems. This is driven largely by an organization's ongoing need to offer competitive rates of pay to attract and retain employees. Most employers have at some point dealt with pay programs that are not sufficiently linked to their relevant external labor market(s) and realize the criticality of a pay system that monitors and responds to market pay changes proactively. But the effectiveness of any job evaluation system, measured by its fairness and consistency in evaluating jobs and distinguishing pay levels, is the true test of its value. This Trends+Issues provides a logical process for establishing and maintaining an efficient market-based pay system.

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: Market-Based Pay Systems

For your convenience, our documents are downloadable in Adobe's universal PDF format, which requires Acrobat Reader to display and print.