Developing a Fair Compensation Plan
There are many factors to consider when developing a fair compensationplan. Internal and external equity are key considerations for offeringcomparable salary and benefits. Internal equity refers to fairness betweenemployees in the same company while external equity refers to relative wagefairness compared to wages with other businesses. In addition to wages,it's important to determine what affects an individual's motivation. Inthis effort, expectancy theory can be applied. Expectancy theory is basedon three perceptions, valence, instrumentality and expectancy. This paperdescribes the steps to achieve internal and external equity as well as highlevels of motivation and cautions of the repercussions for failure to do With regards to internal equity, job descriptions, job analysis andjob evaluation help employers compare different jobs and create faircompensation. Job descriptions define the responsibilities, requirements,functions, duties, location, environment, conditions, and other aspects of
The firstperception in expectancy theory is valence and refers to whether employeesvalue the consequences of achieving specified goals. When employees aren't happy theyleave for another job, call in sick more frequently, do the bare minimumand provide poor service, just to name a few of the symptoms. edu/cpre/tcomp/research/strategy/motivational.
Common topics in this essay:
Method Extend,
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Ranking Compare,
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Comparison Identify,
Outline Issues,
expectancy theory,
Motivational Theory,
external equity,
internal external equity,
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job descriptions,
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factor comparison,
job analysis,
internal external,
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internal equity,
motivational theory 2000,
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equity refers,
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