Internal Alignment

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Pay Structure180160140120100806040200Compensation(in thousands of $)EngineerSeniorEngineerSystemsEngineerLead EngineerAdvisorEngineerConsultantEngineer(Milkovich & Newman, 2008)

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Pay Structure180160140120100806040200Compensation(in thousands of $)EngineerSeniorEngineerSystemsEngineerLead EngineerAdvisorEngineerConsultantEngineer(Milkovich & Newman, 2008)

Guidance from the Evidence• Equity theory: Fairness– Research suggests that employees judge fairnessby multiple comparisons• Comparing to jobs similar to their own at same employer• Comparing their job to other jobs at same employer• Comparing their jobs’ pay against external pay levels• Comparing their pay for similar work at different timeperiods(Milkovich, Newman, & Gerhart, 2011)

Page 1 and 2: Internal Alignment
Page 3 and 4: Internal alignment, often calledint
Page 5 and 6: Pay structure refers to the array o
Page 7: Differentials• The pay difference
Page 11 and 12: (Milkovich & Newman, 2008)Perceived
Page 13 and 14: (More) Guidance from the Evidence I

Internal Alignment

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