Pay · HR glossary

Compensation Management

Compensation management designs and administers pay arrangements, including salary structures, increases and variable rewards. It balances role requirements, market conditions, affordability and fair treatment.

Example

An employer reviews salary ranges, checks internal differences and allocates a pay-review budget using documented criteria for role level and performance.

What to keep in mind

Separate the policy for setting pay from individual exceptions. Keep records of reasons for decisions and review whether apparently neutral rules create unjustified or unlawful pay differences.

Further reading

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