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Aligning Pay With Organizational Objectives, Job Valuation Techniques, and Equity Considerations
Abstract
In the midst of widespread technological change, escalating employee expectations, and worldwide competition, compensation strategy has taken a place at the core of human resource management. This chapter, “Aligning Pay with Organizational Objectives, Job Valuation Techniques, and Equity Considerations,” offers a strategic framework on three pillars: organizational goal alignment, good job valuation, and equity. It contends that contemporary compensation practices need to align organizational values, reinforce desired conduct, and encourage innovation, sustainability, and performance with instruments such as the Balanced Scorecard and Total Rewards. The chapter examines job evaluation practices and fairness from internal, external, and individualistic viewpoints and considers the influence of digitalization, AI, and globalization on compensation systems.
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