Pros And Cons Of A Salary Schedule

1441 WordsMay 3, 20176 Pages
Pros and Cons of a Salary schedule Name Institution affiliation Also referred to as a salary matrix, a salary schedule is a table or a chart that show the way an employee’s wage changes over a certain period. It could displace the amount that an individual earns in a company by their education or his or her pay by promotions. A salary schedule can come I handy in the evaluation of a possible job offer no matter the state of the economy. For example, for an employee who is working for an employer without a salary schedule or whose salary schedule need him to work for longer hours that the average to ensure that he gets a pay rise, one may evaluate that such a career is not for him or her. Employees use the salary schedule by…show more content…
Another advantage of having a salary schedule is that it provides flexibility. The company can be able to reward its most hardworking employees by altering the salary schedule as opposed to having a fixed pay. With this flexibility, the company can also pay the employee slightly more or less money depending on the employee 's education or experience (Kokemulle, 2017). Thus, the companies get an opportunity to offer a little more money to ensure that they can get an employee with a stronger background. The company can also be able to save on cost as it does not have to hire employees with limited backgrounds. Salary schedules also come in handy while the company is budgeting. The salary schedule provides the company with the ability to effectively budget in labor costs. The human resources department in a company can thus analyze the available jobs at their pay grade and get a reasonable estimate of the cost of labor by department and organization. The latter make it easier to the leader to make an assessment on the current labor depending on the needs of the company or any project that the company may need to engage in (Kokemulle, 2017). While labor remains as one of the most expensive factors in a company, having schedules come in handy in ensuring that a business is operated aptly. Having a salary schedule provide a company with objectiveness as it provides an objective pay structure.
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