BU121 Lecture Notes - Canada Labour Code, Collective Bargaining, Canadian Labour Congress
Document Summary
Attract people: have to be sure compensation package is competitive. Retain people: don"t lose them because they are unhappy with their pay. Motivate people: work harder to get more pay: external and internal equity, and incentives. External equity = attracting (look at competition, what other firms pay) Internal equity = retaining employees look at what other people within the company are being paid, internal equity is harder to achieve. Internal equity - job evaluation: develop rating system. Has to be applied to the jobs: use job analysis to rate jobs looking at job specifications/descriptions. Performance evaluation: evaluation in a person: assign pay based on relative value - price the pay structure . Want them to perceive equity, to make sure pay is fair. What aspects of skill are important to your company and pay different according to different levels: sub-factors degrees point values pay grades. Have a degree measurement of each and assign a point value.
