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Salary Administration
Organizations can only get things done through people. One of
the keys to positively motivated behavior is the reward system.
To ensure positive motivation, monetary rewards must compensate
employees equitably for their contribution to the success of the
company.
Therefore, it is the objective of modern companies to establish and
maintain a Salary Administration Policy that will:
- Attract, retain and reward qualified personnel at all levels of
responsibility
- Be externally competitive based on annual profitability and
internally consistent and equitable
- Motivate employees to work toward the achievement of the
company's goals
- Foster good employee understanding and relationships by
providing opportunities for personal growth and monetary
advancement on the basis of demonstrated performance
- Comply with existing laws
An effective Salary Administration System consists of the following
basic elements:
- Written job descriptions or position profiles
- A formal job evaluation system
- Salary structures, salary ranges or broad bands
- Compensation surveys and market analysis
- A performance management process
- Written administrative policies and procedures
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