How to build the structure and salary scale Correctly

How to build the structure and salary scale Correctly

How to build the structure and salary scale are things that must be considered by a company. If you are the owner of a company, then you should think about matters relating to company operations. Operations of the company can improve the performance of the company. One thing you have to think about is the financial aspect. Financial aspects related to the employee’s salary. A business owner should think about all the details about the employee’s salary. Employee salaries are the major expenditures undertaken by a company. Salaries of employees is a very important aspect when you start a business. Total salaries of employees affected by various factors such as the employee’s position within a company. The salary structure of employees is very important to be made because it will serve as a reference for determining the amount of the salaries of employees.

Consideration Factors in Determining The Salaries of Employees

Here are a few factors that can be used as a material consideration to set the salary of the employee:

  • Number of employees’ salaries should be adjusted to the employee’s performance. If employees have a difficult task, then the amount of salary earned should also be adjusted.
  • Employees who have achievements should be given a bonus in addition to the basic salary of employees. Bonuses are given to motivate employees so that they can improve the performance of the company.
  • Employees are entitled to receive a salary increase in the amount based on the rules set by the company.

In general, the salary component has several types. Employee salary component usually consists of a special allowance, the basic salary, operational allowances, fixed allowances, and so on. All components of the salary should be considered carefully before you structure the employee’s salary. Salary component of the company may differ from other companies. When you draw up the salary structure, you must create an organizational structure that positions in the company can be known. The organizational structure in a company affected the size and type of the company. The organizational structure could be changed depending on the condition of the company.

Definition of Structure and Salary Scale

The structure and the wage scale should pay attention to past work, competence, education, and class positions. Wage structure is the wage rate from the lowest to the highest level. Wage scale is the value of wages according to the category of office. Preparation of the structure and scale of wages is essential to prevent discrimination, as a guide for setting the wages of employees, for an overview of the future of the workers in the company. There is no regulation requiring to structure and scale of wages, but the preparation has to be done in order to avoid social inequality in the industrialized world.

Mechanism to Make Structure and Salary Scale

The structuring and the wage scale could be done in the following way:

  • Job analysis

This is a process that is carried out systematically to get into position and information used for the benefit of the organization.

  • Job description

This is a summary of the most important activities in an office. The summary also associated with the responsibilities exercised by the post.

  • Job evaluation

This is a systematic process of job analysis to determine the weight of positions in an organization. Those were the things that must be considered before how to build the structure and salary scale.

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