Compensation Equity

Compensation Mohammad Faisal Bariyaly

We all have a Drive to acquire:-MoneyThingsPrestigepowerWhy do Millions of people go to work each day?

Equity:-Equity is a concept that people derive job satisfaction and motivation by comparing their :-efforts (inputs) Income (outputs)

Internal EquityExternal EquityIndividual EquityperformanceCommitmentMotivationPerception of Fairness

Internal Equity:-Internal equity is the perceived fairness of pay differentials among different jobs within an organization.Job rankingJob classificationPoint systemFactor comparison

External Equity:-External equity involves employee perception of their fairness of their compensation relative to those outside the organization.Lead policyLag policyMarket policy

Individual Equity:-Individual equity considers employee perception of pay differentials among individuals who hold identical jobs in the same organization.

Seniority-based pay systems.Merit-based pay systems.Incentive plans.Skills-based pay.Team-based pay.

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