Setting salaries a balancing act (Web Sight)

Making dollars and cents out of apples and oranges
By Ann Macaulay
|Canadian HR Reporter|Last Updated: 04/25/2006

If an organization overpays its employees, profits will suffer. If it doesn’t pay them enough, they’re likely to leave.

Figuring out how to set salaries can be a real balancing act. Using salary benchmarks to determine how much to pay employees seems like a simple enough thing to do, but it’s not. In most cases, experts agree, comparing jobs is similar to comparing apples to oranges. As difficult as it can be, salary benchmarking is an important issue for organizations in the ongoing struggle to attract, retain and motivate employees.

The following sites look at various issues involved in compensation benchmarking.