Factors for determining pay increases varies from one job

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Factors for determining pay increases varies from one job

"Ways to determine Pay Increases for Employees"

Hypothesis: Factors for determining pay increases varies from one job to another or varies between job positions in different hierarchy in the organization.

To summarize, factors for determining pay increases do not remain same throughout the organization and varies for job positions at different levels. For example, the basis for pay increases for senior level managers will vary from those at lower levels in the organization.

In order to further understand this, organizational managers and HR teams should conduct extensive analysis of various job positions and evaluate performance of employees working in different job positions on different factors and thus, establish linkage between pay increases and performance for each job position in a different manner.

For example, it is easier to calculate productivity gains or contribution of the employees towards the growth of the organization for certain job positions. However, for some job positions, the impact cannot be directly measured and thus, basis for pay increases should be based on different factors.

Hence, the best approach would be to club similar type of job positions by conducting an extensive analysis of various job positions, performance of employees within those job positions and then, coming out with a model that justifies the pay increases for various job positions. Various performance evaluation measures can be used and combined with other basis such as industry benchmarks to come up with appropriate basis for pay increases in the organization.

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