Internal Alignment

In this course, we will explore the concept of internal alignment in total rewards. Internal alignment occurs when each job in a company is valued appropriately relative to every other job in terms of its ability to help the firm achieve its goals.
Traditionally, companies have established pay rates for jobs, not for individuals performing the jobs. This point is important to remember as we examine the various types of job evaluation approaches used by companies. We tend to think that pay rates are established for employees rather than for tasks they perform, but it is the other way around.
With an internally aligned compensation plan, a relative worth structure is developed for jobs, and then pay rates are assigned to those jobs. Before a company can begin to establish the relative worth of its jobs and the pay for each job, it must first have information available about the tasks, duties, and responsibilities required to perform each job.
Consider the importance of having a well-defined job description resulting from a careful job analysis before you can effectively apply any of the approaches.