o Wage rates main issue in collective bargaining, but also includes
time off with pay, income security, cost-of-living adjustments,
o Internal Equity – each employee should view his/her pay as
equitable given other pay rates in org.
o (External) Market Competitiveness –must compare favorably
with rates in other orgs.
Establishing Pay Rates Determine worth of jobs within org. through job evaluation, and group
job of similar worth into pay grades
Conduct wage/salary survey of what other