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Setting salary
structures is an analysis exercise completed annually by most
organizations. These structures set the means by which both
internal equity and external competitiveness are maintained throughout an
entire organization. Determining how much a company should pay an employee in
terms of base salary is a decision with far-reaching total compensation
and benefit impact. Total compensation expenditures are often the
greatest single expense category for an organization.
Lawsuits based upon equal pay laws necessitate the
analysis of the employing organization’s salary structure. Understanding how
labor market and cost-of-labor rates impact salary decisions is integral
to judging equitable pay. Not to mention that a lack of understanding of
salary administration and the salary level decision can severely affect
the internal management (staffing and payroll) of an attorney's own
practice should it, too, utilize salary structures. |
