the economy is experiencing full employment or significant unemployment,
good organizations are always competing hard for talented people.
For some businesses trying to attract employees, “market pricing”
has become a mantra. The resultant
pressure to "pay to market" can have a number of unintended
pay patterns within the organization
effect on morale of overpaying people
talented, long-serving people whose salaries have fallen behind new
Act – Internal Equity & Market Pricing
Smart organizations realize that they need to balance internal equity
and market pricing. Without a
firm understanding of internal pay relativities, organizations have
difficulty in managing compensation, and may be wasting pay. Not surprisingly,
many organizations have shunned the old
style job evaluation approaches for establishing internal equity.
Leading in the
21st Century – A Fork in the Road
It used to be an advantage to be big.
Now, success depends on being fast.
We are at a fork in the road.
The familiar path leads South, because traditional management
principles no longer apply to leading a business to success.
Organizations need to take advantage of their scale and their
agility, as well as new tools for business transformation and success. This document points to road North, which leads
to business and individual success in today’s turbulent times. Read
the “hiring frenzy” of the late 1990’s, many organizations
have focused primarily on market pricing to set salaries. Today’s
challenge is how to attract talented people within a framework of greater
corporate cost-consciousness. One key lies in balancing the need for
market competitiveness with a focus on internal equity. But Kurru’s
new approaches move beyond a focus on the job to paying the person based
on the relevance of the work they are doing, the talent they bring and
their contribution to the success of the business.
CLASSIFY computerized job classification and compensation system provides
a viable alternative to benchmarking and job "slotting", or
a defensible substitute for the "dart board" approach to slotting.
CLASSIFY allows you to undertake fast and objective job size measurement
for all jobs, or for non-benchmark jobs in a market pricing approach.
So, organizations can quickly and easily establish and maintain consistent
job size relativities, to enable them to pay to market responsibly.
Read More >
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