Question

It is now two years since the pandemic started, and 3D imaging health care supplies are now a core component of your business. Describe in detail the seven decisions involved in setting externally competitive pay and designing the corresponding pay structure.

Answer 1

Pay structure helps an organization to retain competitive and talented employees with its operations. It offers competitive advantage as these people have capabilities to lead, innovate and empower other stakeholders associated with an organization. A sound pay structure which will be aligned to external business environment or benchmarking of the competitors or market place can be devised through 07 important decision criteria:

1) Defining Major Goals of the organization in terms of pay structure:

As , it is important that Pandemic has created new scenarios for business operations. Employees need to be know the business challenges and the importance of their regular commitment and contribution to the employer . The basic premises must be set by the HR department relevant to attractive pay design. In the given context , smooth operations after Pandemic is main agenda.

2) Survey market for best pay practices:

A survey should be conducted so as to know similar business organization's strategies to pay higher or lower amount to employees. A list of organizations should be made to select best one by matching own business goals .

3) Make an internal assessment for increased pay requirements:

All the job positions should be evaluated based on relevance and contributions. Employees feedback will be important one.

4) An internal committee should be formulated for study related to pay :

It will help in deciding whether our internal pay policies are matching to competitors pay or not . A gap should be identified.

5) Redesigning of pay structure:

A balanced way of deciding the pay schemes should be adopted. An increase in existing pay will be motivating one.

6) Seeking feedback from employees and external experts;

It will offer an opportunity to assess the pros and cons of new design of pay structure. A genuine feedback system should be established. Each suggestions should be carefully monitored and appropriate measures should be taken by competent people within pay roll management. External pay experts may offer some prudent alternatives to correct challenges inherited with the pay system.

7) Incorporating final pay and compensation system:

All the functional challenges, employees concerns etc. should be resolved and then a well formulated , best in industry pay structure should be adopted by the management. A regular feedback and updates will be required by the management.