Increasing Company Competitiveness: “Tuning-Up” Your Pay System

Authors

K. Dow Scott, Loyola University ChicagoFollow
Dennis Morajda, Performance Development International Inc.
James W. Bishop, New Mexico State University

Document Type

Article

Publication Date

Winter 2002

Publication Title

WorldatWork Journal

Volume

11

Issue

1

Pages

35-42

Abstract

The cost of labor (i.e., salaries, benefits and incentives) accounts for a sizeable portion of an employer’s operating expenses. Pay packages priced too low or configured improperly can deprive firms of the talent needed to successfully develop, market and produce viable products and services in today’s ultra competitive business environment. However, if pay packages are too high, labor costs can weaken a firm’s ability to compete. For example, a firm with 500 employees can have labor costs that easily exceed $15 million. Thus, building and maintaining a cost-efficient pay system that encourages employee performance without adversely affecting corporate earnings requires constant vigilance.

Comments

Author Posting. © WorldatWork 2002. This article is posted here by permission of WorldatWork for personal use, not for redistribution. The article was published in the WorldatWork Journal, vol. 11, no. 1, 2002, https://worldatwork.org/journal/

Recommended Citation

Scott, K. Dow; Morajda, Dennis; and Bishop, James W.. Increasing Company Competitiveness: “Tuning-Up” Your Pay System. WorldatWork Journal, 11, 1: 35-42, 2002. Retrieved from Loyola eCommons, School of Business: Faculty Publications and Other Works,

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Copyright Statement

© WorldatWork 2002