How can you determine compensation based on experience and education?

While market pricing and benchmarking provide valuable data, they are not always reliable or the best approach for determining compensation, primarily due to the radical variation in titles and organizational structures. Understanding how data is collected and analyzed, and recognizing the differences in titles across the organizations surveyed, is crucial. This data should be used as a market reference rather than the sole basis for compensation policy. A more effective strategy is to conduct a point factor job evaluation using methods like Korn Ferry Hay, Mercer IPE, or WTW. This allows for a more accurate assessment of compensation levels. Once established, these evaluations can then be benchmarked against the market using the grades.

I think conduct thorough research to understand industry standards and regional salary trends. ???? Benchmark roles against similar positions in the market to ensure competitiveness. This data-driven approach ensures that compensation aligns with industry norms, attracting and retaining top talent while maintaining internal equity.

Many organisations decides pay scale based on benchmarking with same industry based on skill set required to perform that job. Pay scale should be revised and updated yearly basis on market rate this helps employees motivated and engaged with organisational vision and mission .

Determine compensation based on experience and education by conducting market research, considering industry standards, and aligning pay with the candidate's qualifications, skills, and the level of expertise required for the role.

The most effective way to determine compensation based on experience and education is through point factor job evaluation methods, such as those by Korn Ferry Hay, Mercer IPE or WTW. These methods not only assess the qualifications but also how they contribute to the organization. Once established as a baseline, it allows for creating customized grading systems. However, it's important to note that traditional job evaluation methods are more suited to conventional organizations and managerial roles. For agile organizations or roles requiring deep technical expertise, a skill-based approach is necessary. Job evaluation can set minimum and maximum grade levels, within which grades can be adjusted to account for technical skills and expertise.

???? Systematically assess and grade roles, considering factors like responsibilities, skills, and qualifications. This structured approach ensures internal equity and consistency. Align compensation with the evaluated job grades, acknowledging the value of experience and education. This method not only promotes fairness but also establishes a transparent and systematic compensation structure within the organization.

Selection of pay scale based on job role and job responsibilities is important factor to set fair pay to employees. This is the most important thing for updation of pay scale.

I disagree with an approach that bases compensation determinations on education levels and years of experience. Those factors provide an incomplete picture and can inadvertently cement inequitable pay gaps. The most important considerations for compensation should be the objective worth of the role to the organisation and paying employees fairly based on their performance and contribution to key goals. Personal attributes like education background or tenure should not define a role's monetary value.

There are few employees in the organisation who do well their pay should be revised properly based on their performance is key factor to keep talent motivated and engaged for organization.