The strategic importance of total rewards: total rewards integrated package of all rewards (monetary/nonmonetary, extrinsic/intrinsic) gained by employees through employment. Important to involve union members in evaluating the worth of jobs and in assigning fair pay. Compensation policies: does the company want to be a leader or follower regarding pay, basis for salary increases, promotion/demotion, overtime pay, probationary pay, etc. Equity and its impact on pay rates: external equity paying workers fairly relative to market rates. Internal equity jobs of similar value get similar pay within the organization. Step 1: determine the worth of each job through job evaluation (internal. Steps include: obtain job information (job analysis, group the jobs to be rated, select compensable factors, rank jobs, combine ratings (with other raters, classification/grading evaluation method for categorizing jobs into groups. Classes groups of jobs based on rules for each class (eg. amount of independent judgment, skill, physical effort, etc. ) usually containing similar jobs.