Pay scale
Workforce Management Glossary
Pay scale
What is meant by the term pay scale?
A pay scale or salary structure is a tool that employers use to determine how much a new employee should be paid. The final figure will be the result of taking into consideration factors ranging from the candidate’s level of education and past work experience to the difficulty of the job description.
When determining the pay scale or salary structure for both internal and external hires a business will also need to consider the minimum wage.
What factors influence pay scales?
Arriving at the right pay scale is vitally important for businesses. Placing the right figure on the table can help to both attract new talent and retain existing employees. Additionally arriving at a measured and researched figure means that resources such as the budget have been properly consulted.
In order to arrive at the right pay scale for the individual in front of them each pay scale needs to be appropriately tailored. As such businesses need to take into account the industry in which they are operating. Is there a shortage of experienced workers? If so demand will be higher and the pay scale needs to reflect this.
How can businesses create sound pay scale systems?
The exact pay scale will be dependent on two things firstly the candidate and secondly the finances of the business. To ensure that resources are used appropriately businesses need to consult their analytics to decipher if they have the demand and the budget to hire new staff or upgrade key staff.
With Roubler’s HR analytics and business intelligence software management has access to real-time analytics that provide clarity and visibility in terms of labour forecasting and the operational budget. With the right tools in place a business can improve decision making.