Good Essay About Advantages Of Salary Or Pay Range

A salary range or pay structure represents a pay system where the payment rate is based on the educational, experience and expertise requirements for a specific type of job. This salary range includes a minimum and maximum level where an actual salary to be paid by an employee falls somewhere within that range .

Most of the organizations design the salary range in pay structure because pay ranges give an advantage for differentiating between educational, experiential or performance requirements .
Instead of using specific pay levels, salary ranges give the human resources and advantage to make slightly higher payments to incumbents with strong educational and experiential background. Similarly, salary ranges provide another advantage of limiting the labor cost while hiring personnel having limited background.
Additionally, when a salary range is designed, it helps to receive only the most eligible and fewer applications against the available vacancy. Establishing pay ranges help screen out employees which an organization can afford. If a flat pay level is followed, the human resource managers will receive an enormous quantity of ineligible applications for a specific job .

Drawback of Salary or Pay Range

Salary ranges are established by organizations to value employees having strong background with higher payments. This salary range establishment has the only, but biggest drawback that it may give rise to internal conflicts because personnel executing the same type of jobs are paid differently depending upon the level at which their salary fall within the pre-defined range. Employees with a weak educational background and experience, but high potential, may become discouraged due to which an organization may lose some of the employees with high productivity.

References

Kokemuller, N. (n.d). The Advantages of a Salary Range. Retrieved January 29, 2015, from The Houston Chronicle: http://work.chron.com/advantages-salary-range-6168.html
Noe. (2006). Fundamentals Of Human Resource. Tata McGraw-Hill Education.
Roennevig, M. (n.d). Advantages & Disadvantages of a Salary Rate on a Job Description. Retrieved January 29, 2015, from The Houston Chronicle: http://work.chron.com/advantages-disadvantages-salary-rate-job-description-4770.html