How to design a pay system?

[arif]

Designing a pay system

Yeah, I've been involved in designing a number of pay systems and it's inevitably a complicated and, to some degree, a political process lets be honest about it. Because it involves something that's very important to most people, their income and their self esteem in many cases cause they're getting feedback about how good they are and how well they've done and how much they're worth. It requires really bringing together an almost in a political process a group of experts as well as people who have stakes in the ground.

The biggest mistake I see organizations making in this area is just to call in a consulting firm and turn it over to them, and have them do it. Consulting firms bring a lot to the party. They have expertise and technical pay issues. They understand what's going on in the market. But also needing to have a strong input and be heard is the employees in the organization. The challenge in creating a pay system or modifying a existing one, which is what most often happens, is getting the right amount of input.


Source: https://www.linkedin.com/learning/human-resources-pay-strategy/designing-a-pay-system