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Essay Details:
Essay text:
The best pay system pays the
job what it is worth while also paying competitively relative to the labor market. Some
organizations prefer to be pay leaders by paying above the market, while some may lag
the market because they cannot afford to pay market rates, or they are willing to bear the
cost of paying below market. Pay is often the highest single operating cost of an
organization, which means that paying too can make the organization's products or
services too expensive. It's a strategic decision an organization must make, with clear
trade-offs.
A variable pay program is a pay plan that bases a portion of an employee's pay on some
individual and/or organizational measure of performance...
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