Question

What do you think an effective approach would be to try an get certain companies that do not pay a livable wage to be fair with their employees?

Answer 1

One of the main tasks in any effort to create an equitable and effective wage and compensation system for employees is to develop a consistent protocol for setting pay levels for every job in your organization. In setting the actual pay scale for specific jobs, you have several options.The more essential a job is to the fundamental mission of your company, the higher its job value and, thus, its pay range is likely to be. Job value is determined by using one or more of the following job valuation methods.

How this approach works: You make a list of all the jobs in your company, from the most senior to entry-level employees.Then you group the jobs by major function management, administrative, production, and so on. Working on your own or with other managers, you rank jobs by the degree to which they generate revenue or support revenue-producing functions.The rationale: In large companies, you may want to use a reasonably structured approach to decide what pay range to apply to each job. The more systematic you are as you develop that structure, the more effective the system is likely to be.The downside: Creating and maintaining a structure of this nature takes a lot of time and effort.You look at what other companies in your industry (and region) pay people for comparable jobs and set your pay structure accordingly. You can obtain this data from government and industry websites and publications. Robert Half publishes a variety of salary guides focusing on professional disciplines such as accounting and finance, law, technology, advertising and marketing, and the administrative.

The laws of supply and demand directly affect salary levels. Benchmarking salaries (and benefits) is important to ensure that you’re paying people competitively.The downside: Comparing apples to apples can sometimes be difficult in today’s job market. Many new jobs that companies are creating are actually combinations of jobs in the traditional sense of the word. As such, they can prove difficult to price, because you can only go by how other companies pay. Still, it’s a good starting point.A competitive pay structure will keep your members of staff motivated as they will feel valued by the business, which will reduce your employees’ desire to look elsewhere for other opportunities. When your staff are satisfied that they are being looked after and paid what they feel their job role andresponsibility demands, they are more likely to remain loyal to the company. This will also help to attract the best talent to the business, as opposed to missing out to your competitors.