The Importance of Job Evaluation in Salary Structure Design and its Impact on Business

gheethah
Dear all,

Why is job evaluation important in designing a salary structure and what happens when a company decides to pay more than the market rate? How can it affect their business? What are the advantages and disadvantages?

Thank you.
skhadir
Dear Ms. Gheethah,

The way you had posted your query seems to be very vague to me as I am not able to interpret and respond with my opinions/views. Often, members find it difficult to respond to such queries. You have posted your query as the SENDER, but you haven't analyzed the situation at the RECEIVER end. To be an EFFECTIVE COMMUNICATOR, I suggest you read your query from the READER's perspective and try to answer it. I am sure you will notice the difference.

Would you mind introducing yourself and providing relevant information supporting your query to facilitate members in sharing their best opinions?

Just so you may understand how a READER may interpret your query, kindly consider my opinions:

1) I wonder what kind of evaluation is to be done for designing a salary structure?

2) Is job evaluation to be done for experienced employees based on performance or for a new joiner with relevant industry experience?

3) The management will come to know if they decide to pay more than the market rate. Some organizations have already done so to execute their projects in hand. There are pros and cons to doing this. Let the management understand its impact. I wonder why you are worried about it.

4) It's not like affecting their business because the management has decided to pay more to complete their projects in hand. I am sure the management hasn't paid from their personal pockets. It's within their limits as they might have proposed a better billing rate.

Hope you understand my views.

With profound regards
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