ons must balance each of the concerns while still remaining competitive. For internal equity an organisation can use one of the basic job evaluation techniques to determine relative worth of job. The most common are the ranking and classification methods. The job ranking system arranges jobs in numerical order on the basis of the importance of the job's duties and responsibilities to the organisation. Job classification slots jobs into pre-established grades with higher rated grades requiring more responsibilities, working conditions, and job duties. Base salary is only one aspect of a retention plan for important employees. Benefits and incentive plans are valuable perks in recruiting and retaining essential employees. In order to have a sound benefits package there are certain basic considerations. It is essential that a program be based on specific objectives that are compatible with the organisational philosophy and policies as well as being affordable to the company. By utilising a flexible benefits package, employees are able to choose those benefits that are best suited to their individual needs. Incentive pay plans can be advantageous to both the employer as well as the employee. The success of an incentive pay plan depends on the organisational climate in which it must operate, employee confidence in it, and its suitability to employee and organisational needs. Importantly, employees must view the incentive plan to be equitable and related to their performance. Performance measures should be quantifiable, easily understood, and bear a demonstrated relationship to organisational performance. Performance appraisals serve many purposes, but in general those purposes can be clustered into two categories: administrative and developmental. The administrative purposes include decisions about who will be promoted, transferred, or laid-off. They can also include compensation decisions. Developmental decisions include those related to im...
