Factors to determine employee pay

There are several factors which should be considered while determining employees’ compensation. One of the factors to be considered in employee’s pay is his or her responsibilities. The essential functions performed by an employee should determine his or her salary (Armstrong, 2002).

            The other factor that should be used in formulating employee’s pay is the company’s financial status, which determines its ability to pay. Employee’s salary should be within organization’s budgetary constraints. It is uneconomical for an organization to pay employees large salaries, and in the end make losses. As result of this, salaries……………