Salary Administration and Job Evaluation

This chapter discusses the salaries rather than to wages. Wage administration forms a concise area and is already well documented, but salary administration tends to remain a loose collection of factors. Salary administration is that broad area of personnel management which refers to the determination of appropriate levels of remuneration for staff employees according to the grade or worth of the job, coupled with a consideration of individual merit and performance and tempered by company profitability. Considering the importance of salaried staff to the success of an enterprise, the rather nebulous and haphazard orthodoxy, such as it is, is rather surprising. The contribution of job evaluation is again limited. It can help to identify the number of people employed within different categories and can identify how the salary budget is apportioned. A joint study has been made by the Institute of Personnel Management and the Institute of Cost and Management Accountants.