Salary Problems
Absorbing market rates pressures
arises when general and individual salary reviews have not
enabled the company’s salary levels to keep pace with
increase in market rates.
it is exacerbated if the company is expanding and is
compelled to obtain key staff who are in short supply.
Widening differentials
differentials are widening between and within companies
in the following areas:
- between high-and low-paying organizations – the variations
in prosperity between differing sectors of industry and
commerce and between regions are major contributors to this
problems.
- between companies paying bonuses or incentives and those
paying straight salaries.