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HR Pay Scale

Why Pay Scales are Needed?

Why Pay Scales are Needed in Your Business

As a new employee, there is always a question of how much will be paid for the new position you are being recruited for and the second question, when do you join, if everything goes well. It is when you join a company then you realize the surfeit of questions you should have asked and didn’t at that moment. There is something called as fairness and parity in the organization regarding how it treats an employee.

This can be achieved from multiple routes like uniforms, same workspace, office timings, or could you your compensation strategy. Whenever someone talks about compensation strategy, there is invariably a mention of pay scales. Before we delve into the nitty-gritties of pay scales and why they are important, let us discuss what does a pay scale means?

According to Wiki, A pay scale (also known as a salary structure) is a system that determines how much an employee is to be paid as a wage or salary, based on one or more factors such as the employee’s level, rank or status within the employer’s organization, the length of time that the employee has been employed, etc.

With the help of pay scales and salary bands, an employee is given compensation. It brings fairness by giving compensation that is as per their designation and at par with the peers having similar designations.  It also creates a culture of homogeneity and parity within the organization.

Written by

Headsup Corporation
Headsup Corporation

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