Total Compensation (10.4%) Flashcards
Relevant Legislation to Compensation
1) Employment Standards Act
2) Human Rights Legislation
3) Pay Equity Legislation
4) Income Tax Act
5) Employment Insurance Act
6) Canada & Quebec Pension Plans
7) Government Health Care Plans
Employment Standards Act
sets minimum requirements related to compensation (minimum wage, overtime pay) and benefit entitlement (statutory holidays,vacation entitlement, paid rest and lunch periods, paid and unpaid leaves, etc.)
Human Rights Legislation
ensures compensation practices are not discriminatory to protected groups
Pay Equity Legislation
governs “equal pay for equal work” and “equal pay for work of equal value”
ensures that male-dominated job classes and female-dominated job classes of equal value are paid the same
Income Tax Act
governs required “deduction at source” payroll remittances by employers on their employee’s behalf
determines which benefits must be considered taxable benefits and thereby taxed as income
Pg 436 in Strategic Compensation in Canada for status of taxability of benefits
Employment Insurance Act
ensures income in the event of job loss (this topic is dealt with at greater length later in this module)
Canada & Quebec Pension Plans
mandate employee and employer contributions to these plans based upon the employee’s income (dealt with in greater detail later)
Government Health Care Plans
in some provinces require premiums to be deducted by employees
Total Compensation
= compensation + benefits
Intrinsic Rewards
= comes from one’s enjoyment and satisfaction with the “nature” of the work
inherent in job content
Include the following:
- Job Autonomy = the degree of freedom one has for determining how a job is to be performed
- Opportunity for Achievement
- Challenge and Responsibility (although TASK COMPLEXITY is NOT associated with job satisfaction)
- Opportunity for learning and growth
- Task Identity - extent to which someone performs all aspects of the job
- Skill variety
- Task significance = the perceived importance or social value of the task
- Job Feedback = the extent to which the job itself provides feedback on worker performance (i.e. an epee can assess their performance
important but play small part in determination of total compensation strategy
Extrinsic rewards
= come from outside the work or are external to the job
embedded in the job context
Include the following:
- financial compensation
- benefits and prequisites
- physical working environment and conditions
- status
- security
- promotion
total compensation often refers to the provision of extrinsic rewards
Job Enrichment
Process of resigning jobs to incorporate more of the five core dimensions of intrinsically satisfying work
Five Core Job Dimensions:
1) Task identity = the extent to which a worker performs a complete cycle of job activities
2) Task Significance = the perceived importance or social value of a given task
3) Skill Variety = the variety of skills required for task completion
4) Job Autonomy = the degree of freedom workers have in deciding how to perform their jobs
5) Job Feedback = the extent to which the job itself provides feedback on worker performance
Acquired Needs Theory
Needs are shaped over time by experiences (also known as Three-Need Theory or Learned Need Theory)
Most needs fall into 3 categories and people have a tendency towards 1 category:
1) Achievement –> seek to excel and appreciate frequent recognition; avoid low risk activities w/ no chance of gain and high risk where significant chance of failure
2) Affiliation –> seek harmonious rel’p w/ ppl; tend to conform and shy away from standing out; seek approval rather than recognition
3) Power –> want power to control other ppl (for own goals) or achieve higher goals (for greater good); seek neither recognition nor approval from others – only agreement and compliance
Attitude-Behaviour Consistency
Our attitudes (predispositions to behaviour) and actual behaviors are more likely to align if the following factors are true:
- our attitude and behaviour are both constrained to very specific circumstances
- there have been many opportunities to express attitude through behaviour
- we have history of attitude-behaviour consistency
- the attitudes are based on personal experience rather than being copied from others
- the attitudes are proven by past experience
- there is no social desirability bias where the presence of others will lead us into uncharacteristic behaviour
- we are low in self-monitoring so we do not distract
- the attitude is strongly held and is around core beliefs
Attribution Theory
The need to attribute cause that supports our ego. Attribute cause to give greater sense of control. When explaining behaviour, it can affect the standing of people within a group
Internal attribution - when another person has erred, we contribute it to internal factors OR if we have had a success
External attribution - when another has succeed, we tend to attribute causes to situational factors; If we have erred, we tend to attribute the event to situational factors
Attributions sig driven by emotional and motivational drives
Self serving attribution - blaming others and avoiding personal recrimination; defend perceived attacks
people with high need to avoid failure will have greater tendency to make attributions that put themselves in a good light; even tend to blame victims for fate to seek distance
tend to ascribe less variability to other people than ourselves, seeing ourselves as more multifaceted and less predictable than others (may be b/c see more of what is inside ourselves)
Two step process –> start with automatic internal attribution, followed by slower consideration of external attribution; if hurried or distracted, may not get to 2nd step (makes internal more likely)
Cognitive Dissonance
Non-alignment is uncomfortable
The feeling of uncomfortable tension that comes from holding two conflicting thoughts in the mind at the same time.
Dissonance increases with:
- the importance of the subject
- how strongly the dissonant thoughts conflict
- our inability to rationalize and explain away the conflict
Very powerful motivator, which will often lead us to change one or other of the conflicting belief or action. The discomfort often feels like tension btwn 2 opposing thoughts.
To release tension, 3 possible actions:
- change behaviour
- justify our behaviour by changing the conflicting cognition
- justify our behaviour by adding new cognitions
Most powerful when it is about our self-image (feelings of foolishness and immorality are dissonance in action)
If action cannot be undone, then after the fact dissonance compels us to change our beliefs; if beliefs are moved, then dissonance appears during decision making
increases with importance, impact and difficulty of reversing
Cognitive Evaluation Theory
We select tasks based on how doable they are
Evaluate tasks in terms of how well meet needs to feel competent and in control
if think able to complete, intrinsically motivated to complete task w/ no further ext motivation
Internal Locus of Control - feel in control of how they behave
External Locus of Control - believe the environment or others have greater influence over what they do
external rewards may have some degree of control or may be informational, such as where they reinforce feelings of competence and self-determination
when see reward as mostly for control, motivated by gaining reward but not by enacting requested behaviour
occasionally called Self-Perception Theory
Consistency theory
We seek the comfort of internal alignment
When beliefs, attitudes, and values all support one another and are supported by external evidence, then comfort
discomfort of congnitive dissonance occurs when alignment is not met, which leads us to try to achieve max practical level of consistency in our world
strong need to believe consistent w/ social norms; when conflict btwn behaviours and inner systems but consistent w/ social norms, swayed despite inner dissonance
Ways we achieve consistency:
- denial or ignoring
- rationalization and excuses
- separation of items
- transcendence
- changing item
- persuasion
Control Theory
We seek to control the world around us
Deep need for control that often controls us; effort for perfect control can make one miserable
alternative is to see world as series of choices
Negative feedback principle - outcomes compared to intent and used to moderate actions until intent is optimally achieved (negative refers to the difference btwn intent and outcome)
Important consequent is self regulation –> people seen as intelligent, goal-driven individuals who attempt to control activities to achieve goals, objectives, and needs
Disconfirmation Bias
Agreeing with what supports beliefs and vice versa
When people are faced with evidence for and against their beliefs, they will be more likely to accept the evidence that supports their beliefs with little scrutiny yet criticize and reject that which disconfirms their beliefs.
Generally, we will avoid or discount evidence that might show us to be wrong.
Require significant evidence to change beliefs
Drive Theory
We seek to satisfy needs
needs prod us to actions to reduce stimuli by satisfying relevant needs
Drives necessary or needs would not be satisfied
Require perception of needs/stimuli to learn
Primary Drives –> related to basic survival and procreation
Secondary Drives –> related to social and identity factors (less important than survival)
As we act to satisfy needs, we come conditioned and acquire habits and other unconscious forms of responses and reactions
Behaviour changes only if habits are not satisfied, such that drive remains
If enacting of drives is frustrated or driven actions do not satisfy needs, can lead to anxiety and other negative emotions
Endowed Progress Effect
Progress is motivating
progress creates commitment to continued efforts to achieve goal
if feel making no progress, likely to abandon efforts
as get closer to goal, commitment likely to deepen as they strive increasingly harder to achieve success
ERG Theory
We seek to fulfill needs of existence, relatedness, and growth
simplified Maslow’s Hierarchy; seen on continuum than hierarchy
Existence –> lowest level, alive/safe, and foreseeable future; when satisfied, feel safe and physically comfortable; correlate to Maslow’s physiological and safety/security needs
Relatedness –> social needs (rel’p and what ppl think of us); feel a sense of identity and position in society; correlated with Maslow’s belonging and esteem
Growth –> seek growth and being creative (highest level); feel sense of wholeness, achievement and fulfillment; correlate with Self-Actualization
Escape Theory
We seek to escape uncomfortable realities
activities we indulge in help us get away from our lives
can be harmless or potentially dangerous
in effect trying to escape from ourselves or some aspect of our character
Goal-Setting Theory
different types of goals motivate us differently
in order to direct ourselves we set goals that are
1) CLEAR (not vague) and understandable so that we know what to do and what not to do
2) CHALLENGING so we will be stimulated and not bored
3) ACHIEVABLE so we are unlikely to fail
More likely to be motivated to work hard if involved with goal setting (feel we have set or directed the goal ourselves)
Require FEEDBACK to determine if succeeding or whether we need to change direction. Encouraging and motivating. Feedback can be from self too (self talk)
DIRECTIONAL GOAL - motivated to arrive at a particular conclusion; narrow thinking and beliefs that support the conclusion. The lack of deliberations also tends to make us more optimistic about achieving the goal
ACCURACY GOAL - motivated to arrive at the most accurate possible conclusion. These occur when the cost of being inaccurate is high. Ppl invest more effort in achieving accuracy goals as deviations have costs. Their deliberation also makes them realize that there is a real chance that they will not achieve their goal. When we have an accuracy goal we do not get to a “good enough” point and stop - we continue to search for improvements
Both directional and accuracy goals work by influencing our choice of beliefs and decision-making rules
Investment Model
Our commitment depends on how satisfied we are about:
- Rewards and costs and what we see as a fair balance
- A comparison with potential alternative rel’ps
- -How much we have already invested in the rel’p
investments can be financial, temporal (time) or emotion.
investments can thus have a sunk cost effect where person stays in a rel’p simply b/c they have already invested significantly in it
Reactance Theory
discomfort when freedom is threatened
when ppl feel that their freedom to choose an action is threatened, they get an unpleasant feeling called REACTANCE, which motivates them to perform the threatened behaviour thus proving that their free will has not been compromised
Self-Discrepancy Theory
We need beliefs to be consistent
We are strongly motivated to maintain a sense of consistency among our various beliefs and self-perceptions. This causes problems as there are invariably differences between our aspirations for ourselves and our actual behaviours
When the actual experience is somewhat less than we think we can achieve, we tend to feel a pattern of feelings such as sadness, dissatisfaction and other depressive senses. When the experience is less than we feel we should achieve, we experience fear, worry, and other anxieties
Act to reduce dissonance by various means
McGregor’s X Y Theory
impacts of negative vs positive management styles
Two theories of human behaviour at work. Two theories are extremes with whole spectrum of possible behaviours in between. Presents two fundmental approaches to managing ppl. Many mngrs tend toward theory x and generally get poor results. Enlightened mgrs use theory y, which produces better performances and results and allows ppl to grow
Theory X (authoritarian mngmt style)
- the average person dislikes work and will avoid it if he/she can
- therefore most people must be forced with the threat of punishment to works towards organisational objectives
- the average person prefers to be directed, to avoid responsibility, is relatively unambitious, and wants security above all else
Theory Y (participative mngmt style)
- effort in work is as natural as work and play
- ppl will apply self-control and self-direction in the pursuit of organisational objectives without external control or threat of punishment
- commitment to objectives is a function of rewards associated with their achievement
- ppl usually accept and often seek responsibility
- the capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population
- in industry, the intellectual potential of the avg person is only partly utilized
Hierarchy of Needs Theory
we are motivated to satisfy needs based on a hierarchy of importance that applies to all human beings
Motivation-Hygiene theory
Intrinsic factors are motivators that influence work motivation and positive job satisfaction
Extrinstic factors are hygiences that influence negative job satisfaction
Two Factor Theory
- Motivators - intrinsic factors related to job content that influence work motivation
- Hygienes - extrinsic factors related to job context that influence job satisfaction only to the extent that if not present then unsatisfied
Job Characteristics Theory (job enrichment)
Indicates that five core job dimensions contribute to intrinsic motivation
- Task identity
- Skill Variety
- Task Significance
- Autonomy
- Job Feedback
Equity Theory
A psychological process where employee’s balance inputs and outputs to gauge fair and equal treatment (according to some equivalent other)
Expectancy Theory
We are motivated by desirable things that we expect we can achieve. If things seem reasonably likely and attractive, we know how to get there and believe we can make a difference, which will motivate use to act to make this future come true
VALENCE - teh value of the perceived outcome (what’s in it for me?)
INSTRUMENTALITY - the belief that if I can complete certain actions then I will achieve the outcome/reward (clear path?)
EXPECTANCY - the belief that I am able to complete the actions (my capability?)
Reinforcement Theory
we are motivated to repeat behaviours that are positively or negatively reinforced and avoid behaviours that are punished
positive reinforcement
negative reinforcement
punishment
Maslow’s Hierarchy of Needs Theory
posits that humans are motivated to satisfy their needs and that these needs are arranged in a hierarchy of 5 levels
indv strive to satisfy lower level needs before progressing to satisfying higher level needs
Moving from lower to higher
- physiological/physical
- safety/security
- social/belonging
- esteem/ego
- self actualization
1) Physiological - the need for air, water, food, exercise, rest, freedom from disease and disabilities)
2) Security - the need for safety, shelter, and stability
3) Belonging - the need for being loved, belonging, social interaction, and inclusion
4) Esteem - the need for self-esteem, power, recognition, prestige; these needs are met through achievement, recognition, promotions and bonuses
5) Self-Actualization - the need for development; these needs are met through autonomy and achievement
Herzberg’s Motivation-Hygiene Theory
Frederic Herzberg, 1960s
workers’ needs can be broken into 2 categories:
1) Hygienes needs
2) Motivational needs
2 categories have substantially different impact on job satisfaction, motivation and work performance
Motivational needs for achievement, interesting work, responsibility, learning and growth, and recognition will lead to job satisfactino
Hygiene needs for good working conditions, decent and equitable pay and benefits, and efficient administrative procedures do not contribute measurably to increased job satisfaction and motivation; fulfillment simply ensures that individual is not dissatisfied or not unhappy
Fulfilling hygiene needs does nto necessarily mean employees will be happy; this comes with motivational needs fulfillment
To motivate epees, mngrs must appeal to motivational needs
Task complexity is NOT a satisfier, but instead can lead to stress if the job is overly complex
Hackman and Oldham’s Job Characteristic Theory (Job Enrichment)
Identifies 5 job characteristics that contribute to intrinsic motivation
1) Job Feedback –> the level of feedback on both quantity and quality that the epee received from the job itself without having to rely external feedback from a superior or colleague
2) Job Autonomy –> the degree of freedom or discretion an epee has in performing his or her job
3) Skill Variety –> the degree to which a variety of skills are required to complete a job
4) Task Significance –> the perceived importance or social value of a job
5) Task Identity –> the degree to which an employee performs a complete cycle of job activities, from start to finish and not just one part of a job
Adams Equity Theory
suggests that employees strive for equity with others both inside and outside the orgsnization and that if they input at the same level as others, they expect to recieve the same level of output
if epees feel that there is equity between their input and output and the input and output of others, then they will be satisfied with their rewards
Distributive Justice –> epees are satisfied when they perceive that overall reward outcomes are fair
Procedural Justice –> refers to the perception that reward determination (process) is far
often difficult to ensure feelings of equity b/c epees have different perception of which inputs and which outputs are most valuable.
Lack of organisational justice and inequity contribute to reward disatisfaction
Distributive Justice
epees are satisfied when they perceive that overall reward outcomes are fair
Procedural Justice
refers to the perception that reward determination (process) is far
Porter and Lawler’s Expectancy Theory
epee motivation is dependent on an epee’s assesment of
1) their own ability to perform successfully
2) the likelihood of their perf being recognized
3) the value of the reward they will receive
INSTRUMENTALITY - will the effort and performance be instrumental in receiving the reward; will performance lead to reward
VALENCE - how strong is the attraction or desire for the reward; is reward valued
EXPECTANCY - belief that one is able to successfully perform proposed action; will effort lead to performance
THE PSYCHOLOGICAL CONTRACT - an expression of an epee’s expectations concerning the compensation rewards that will be provided by the organization if certain performance is achieved
Reinforcement Theory
suggests that people will repeat performances/actions if positively and/or negatively reinforced for doing so.
Two types of reinforcement
1) POSITIVE REINFORCEMENT
2) NEGATIVE REINFORCEMENT
3) PUNISHMENT
4) EXTINCTION
Positive reinforcement
occurrence of a valued behavioural consequence has the effect of strengthening the probability of the behaviour being repeated. The specific behavioural consequence is called a reinforcer; e.g. bonus for meeting sales quota; the administration of a positive reinforcer should make it more likely that the epee will continue to exert the necessary effort in the future
Negative Reinforcement
- results when an undesirable consequence is withheld with the effect of strengthening the probability of the behaviour being repeated; often confused with punishment but punishment attempts to decrease the prob of spec behaviours; negative reinforcement attempts to increase desired beh; positive and negative reinforcement have the effect of increasing the prob that a particular behaviour will be learned and repeated, e.g., decision to not reassign to undesirable area if meet quota; the administration of the negative reinforcer should make it more likely that epee will cont to exert necessary effort in the future
Punishment
attempts to decrease the probability of specific behaviours being exhibited
punishment is the administration of undesirable behavioural consequences in order to reduce the occurrence of the unwanted behaviour
punishment is one of the more commonly used reinforcement theory strategies, but many experts suggest that it should be used only if positive and negative reinforcement cannot be used or have previously failed because of the potentially negative side effects of punishment
e.g. demoting epee for not meeting goals or suspending for violation of rules
Extinction
purpose is to reduce unwanted behaviour
process begins when valued behavioural consequence is withheld in order to decrease the probability that a learned behaviour will continue
likely to result in ceasing of behaviour over time
may alternately serve to reduce a wanted behaviours, e.g. when positive reinforcer is no longer offered
e.g. continually praised for several months and no praise afterwards
to avoid unwanted extinction, mngrs may have to continue to offer positive behavioural consequences
Applying Motivation Theory
1) Compensation as an extrinsic reward is only one element in creating work satisfaction and should be BALANCED with other non-monetary aspects
2) Compensation is a measure of an EPEE’S WORTH - directly in terms of the standard of living they can achieve and indirectly in terms of a symbol of recognition
3) High Levels of compensation will not necessarily lead to JOB SATISFACTION but less than expected remuneration will likely lead to JOB DISSATISFACTION
4) PERCEIVED EQUITY both internally and externally is an important element in the design of any total compensation program
Strategic Compensation
support achievement of org’s goals
align with other HRM areas - recruitment, retention, org structure, job design, succession and career planning, etc. - to reinforce org’l priorities
purpose of comp’n program is to reward and shape behaviour
Essential elements include
- policy
- communication
- equity
- job worth (job analysis, job design, and job evaluation)
Policy
Critical to create overall compensation policy outlining purpose and underlying principles of program
First step –> understand the organization, its employees, and the nature of work
Policy therefore should be concerned with:
- the org’s goals
- the desired epee pop’n charac. and competencies
- work that is being performed
- beh/skill/perf goals to be achieved by program
- comparative labour market
- the desired competitive compensation placement within that market (usually expressed as a percentile match)
- the role equity will play in determining compensation
- the role of performance, service/seniority etc in determining compensation
- the degree of opennes and transparency in communicating the program
- a means of measuring and containing costs
- a means of measuring the other elements of program success
Communication
perception plays an important role of success of a compensation program
v. important to effectively communicate the components of the program
key elements
- transparency
- epee involvement
- openness
Equity
beyond legal requirements, the achievement of internal and external equity are vital concerns for an effective total compensation program
equity involves establishing job worth and aligning that worth with the competitive marketplace
Job Worth
fundamental to the development of a total compensation program is the determination of the worth of the job to the organization, which in turn leads to the amount of compensation provided to the job incumbent
Main activities are
1) Job Analysis
2) Job Design
3) Job Evaluation
Job Analysis
Involves the collection of all info pertaining to a job in order to determines its duties, tasks, and activities and results in the creation of a job description
job description generally includes:
- job purpose
- job context
- types of duties and responsibilities
- KSAs required
least common feature found in job description is the list of job performance standards
information generally collected through interviews, observations, questionnaires, journals and diaries
Types of Job Analysis Methods
1) Position analysis questionnaires (PAQ)
2) Structured Job Analysis questionnaires or inventories
3) Critical incident technique
4) Task inventory analysis
5) Competency-based Analysis
6) Worker trait inventories
7) Job element method
8) Flesihman job analysis survey
9) Functional Job Analysis
Position Analysis Questionnaires (PAQ)
quantifiable data collection method covering 194 different worker-oriented tasks
focuses on the general behaviours that make up a job by organizing job elements into 6 dimensions
- information input
- mental processes
- work output
- relationships
- job context
- and other characteristics
PAQ is best suited for assessing lower level jobs!
Disadvantage –> requires a college-level reading comprehension to complete it properly
Structured Job Analysis questionnaires or inventories
workers and other subject-matter experts respond to written questions about the activities and tasks, tools and equipment, and working conditions involved in their jobs
Critical Incident Technique
job analysis method that generates behaviourally focused descriptions of work activities based on the use of critical incidents that occur in the performance of the job
Task Inventory Analysis
a task-oriented analysis using a task inventory questionnaire that is customized to each organization (as opposed to PAQ which is standardized)
Competency-based Analysis
jobs are defined in terms of tasks, duties, processes and skills necessary for job success with a focus on identifying the key competencies for organization success.
This approach is a more realistic approach in today’s environments of constant change and technological advances
Worker Trait Inventories
focus on the traits required of job incumbents based on the job analysis data
Sometimes referred to as THRESHOLD TRAITS ANALYSIS SYSTEMS
Job Element Method
is a work oriented method focused on the human attributes needed for superior performance, used to match what epees can do against what the work calls for
Fleishman Job Analysis Survey
is a system for identifying epee characteristics taht influence job performance and assumes that job tasks differ with respect to the abilities required to perform them successfully
Functional Job Analysis
quantitative approach to job analysis that originally examined three broad worker functions
1) data
2) people
3) things
More recent functional job analysis methodology also includes an examination of worker instruction, reasoning, math and language
Job Design
process of assigning tasks, duties, responsibilities, and authority inherent in a job in order to achieve the desired results
the design and organization of jobs can have a major impact on epee motivation and performance
Design also has impact on the determination of job worth in that “enriched” or “enlarged” jobs inherently have more worth from a compensation perspective
Job Evaluation
Process used to establish INTERNAL worth of jobs
if systems are either “whole job” evaluations or ones based upon compensable factors (e.g. scope, responsibility, task complexity, and skill requirement)
Job Evaluation Systems
1) Job Ranking
2) Job Classification/Grading
3) Point Factor
4) Factor Comparison
Whole Job Evaluation Systems
Job Ranking (simple ranking, alternate ranking, or paired comparison)
&
Job Classification/Grading
Job Evaluation Systems using Compensable Factors
Point Factor
&
Factor Comparison
Job Ranking
Simplest, oldest, and most common form of job evaluation is non-quantitative “whole job” method
1) simple ranking
2) alternate ranking
3) paired comparison
Attractive due to simplicity
Disadvantage of not meeting pay equity legislation requirements
Simple Ranking
listing jobs from highest to lowest worth
JE method
whole job method
Alternate Ranking
ranking highest and lowest first and then next highest and next lowest, etc.
JE method
whole job method
Paired Comparison
ever job being compared to every other job to form hierarchy
JE method
whole job method
Job Classification/Grading
Non-quantitative “whole job” method that involves predefined generic levels of compensable factors and comapres whole job in terms of these factors against BENCHMARK POSITIONS and ranks them accordingly
Benchmark Job/Position
a job in the firm’s job evaluation system for which there is a good match in the labour market data
Point Factor
quantitative method where compensable factors are defined in “degrees” or levels; points are assigned to each degree level
job worth is reflected in the total number of points awarded to the job
generally use:
- effort
- working conditions
- responsibility
- skill
Factor Comparison
quantitative “compensable factor” method
extension of the job ranking method, whereby each job is ranked on every factor and plotted on a matrix against wage rate assigned for each factor
Compensable factors
characteristics of jobs that are valued by the org and differentiate jobs from one another
Establishing a Salary Structure
1) Evaluate Jobs
2) Conduct Market Matches
3) Price Jobs
4) Create Market Wage Curve
5) Assess Current Wage Curve
6) Integrate Internal Equity and Market Rates
7) Create Wage Ranges (est’g min, max, and control points)
8) Create Job Grade Structure (e.g. absolute point spreads, percent point spreads, fixed or increasing point spreads)
9) Create Pay Range Structure (e.g. mid-point to mid-point differentials, range depth; range overlap)
10) Job Evaluation Determines Pay Grades
11) Market Analysis determines Pay Ranges
