How do i design and implement a compesation structure for an organisation?
From Zambia, Lusaka
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Compensation Structure Information Request

Please share the set of information you have regarding the compensation structure. We can guide you from there. It wouldn't be easy to provide insights with so little information. Please share the following details:

- What vertical do you belong to?
- What is the current employee strength?
- Is your business model sales or operations-based?
- What kind of payment are you currently making?
- If it's voucher payment, how was it determined?
- Is your organization registered with ESIC, etc.?

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From India, Mumbai
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Pay structures: An overview

Pay structures define employee compensation for different jobs or groups of jobs. They involve setting salary ranges and pay grades based on market data and job roles. Here's our guide on why and how to set up a pay structure.

Why establish a pay structure?

Pay structures, also known as salary structures or compensation structures, help companies offer equitable, competitive salaries and map out employees' paths to growth and higher pay. They enable companies to attract and retain talented people. Compensation structures create a fairer and more predictable process for determining an individual's compensation. The alternative to setting up formal pay structures is to determine salaries based on:

- Candidates' salary history
- Arbitrary figures

Both methods could confuse managers and team members regarding pay levels and career development and raise suspicions of discrimination. To avoid these issues, it's a good idea to set up a pay structure, especially once companies reach 200-250 employees.

How to set up a pay structure

- Conduct job analysis and job evaluation
- Determine the form of your employee compensation structure
- Pay grades
- Plan to update pay structures
- Educate managers

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