3. Basic Factors in Determining Pay Rates Direct Financial Payments Indirect Financial Payments Employee Compensation
4. Legal Considerations in Compensation Employee Compensation Equal Pay Act (1963) Employee Retirement Income Security Act (ERISA) Age Discrimination in Employment Act Americans with Disabilities Act Davis-Bacon Act (1931) Walsh-Healey Public Contract Act (1936) Title VII of the 1964 Civil Rights Act Fair Labor Standards Act (1938) The Family and Medical Leave Act The Social Security Act of 1935 (as amended) Workers’ Compensation
5. Equity and Its Impact on Pay Rates External Equity Procedural Equity Internal Equity Individual Equity Forms of Equity
6. Addressing Equity Issues Salary Surveys Job Analysis and Job Evaluation Performance Appraisal and Incentive Pay Communications, Grievance Mechanisms, and Employees’ Participation Methods to Address Equity Issues
7. The Salary Survey To price benchmark jobs To make decisions about benefits Step 1. The Wage Survey: Uses for Salary Surveys To market-price wages for jobs
8. Sources for Salary Surveys Employer Self-Conducted Surveys Government Agencies Consulting Firms Sources of Wage and Salary Information Professional Associations The Internet
10. Establishing Pay Rates (cont’d) Ranking Factor Comparison Job Classification Methods for Evaluating Jobs Point Method
11. Establishing Pay Rates (cont’d) Point Method Ranking Method Classification Methods Step 3. Group Similar Jobs into Pay Grades
12. Pricing Managerial and Professional Jobs Base Pay Executive Benefits and Perks Short-term Incentives Long-Term Incentives Compensating Executives and Managers
13. Competency-Based Pay (cont’d) Support High-Performance Work Systems Support Performance Management Why Use Competency-Based Pay? Support Strategic Aims
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