- Attract qualified staff
- Retain qualified performer
- Reward performance, responsibility and royalty and provide for progression and increase.
- Motivate people-encourage to active superior levels of quality performance.
The pay plans are made in the systematic process that includes for the coming phases:
- Pay Level: It analyzes the factors like average rate paid by employers; external equity etc. then the organization can make market survey for the better pay plan.
- Pay Structure: It is made in the different factors and it is the level versus rate of pay plan.