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The goal of a modern wage and bonus system is to closely link the costs of work to employee performance.
A base salary system may be created based on job valuation (e.g. the UMEWAP method). In the process, the requirements of a given job (position) are determined, and the evaluation of its relative value for the company is objectivized.
Uses
- describe and arrange jobs in the company in a hierarchical order;
- determine requirements and mutual dependencies based on job importance and complexity;
- create a qualifications scale;
- create a base salary grid with wage differentials closely related to job significance within the organization.
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