Also, in developing a compensation survey, it is also possible that employees needed to fill one type of benchmark job are in demand in certain labor markets, and employees needed to fill another benchmark job are in demand in other labor markets. For both of these reasons, namely that we may be competing with different organizations in different labor markets for one type of employee, and also that we may compete with different organizations in different labor markets for one job in the organization versus another, organizations must relate to a variety of labor markets when conducting a compensation survey.
The process begins by looking at which pay areas are the most critical for the organization. In other words, it is looking at where the organization seems to be less effective in competing in the external market. An important indicator of a problem may be the inability to hire qualified applicants and/or high turn-over rates. These are common indicators that the pay set for that job may not be competitive. Another possible indicator of a problem could be low productivity or poor quality.
Often the organization decides that it is best to use different job evaluation methods for different groupings of jobs in the organization. When pay is set, the scatter diagrams are usually different and the pay policy line and the y-intercept as well. For this reason an organization may have more than one pay structure.
This can occur, for example, when the organization develops one pay structure for upper management and another for lower level employees. In the situation where an organization has more than one pay structure, it is important that questions of fairness are addressed.
In general, the amount of overlap should reflect how similar the jobs are to each other; the more similar the jobs, the more overlap there should be, the less similar the jobs, the less