Wage and Salary Decisions

Wage and salary decisions refer to how employers determine the pay rates for their employees. This process involves analyzing factors like job responsibilities, market trends, employee performance, and the organization’s budget. Companies aim to offer competitive compensation to attract and retain talent, while also ensuring fairness within the workplace. A well-structured compensation system balances internal equity (fairness among employees) and external competitiveness (pay rates compared to other companies), helping to motivate employees and align their efforts with the organization's goals.