Under the supervision of Ms SAOULI

Tasaadit
16/04/2024

HOW DO HR
MANAGERS
STRUCTUR
WAGES
presented by :
KHELIL Fatiha
MAACHOU Manel Meriem
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Plan 03

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ENSM-MFE
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2023-
I -introduction
2024
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02 II - The steps of designing

2023-
2024
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wage structu
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2023-
2024
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Designing the
III -
organization wage
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ENSM-MFE
structure
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 Entrepreneuri
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REPORT 2023-
2024
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04 IV - Grade pricing
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Entrepreneuri
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al 02 V - The
REPORT
2023- economic and
2024
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04 the financial
ENSM-MFE 05 impact
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 Entrepreneuri
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REPORT
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VI - Study
case
 Introduction
The variance of wages across individuals is a summary statistic that means many things. Wage
variance is an indicator of income inequality: high variance suggests high income inequality.
But the "wage structure" of an economy - or the mean and the variance of wages - is also an
indicator of the degree to which some individuals invest in human capital, the degree to which
they work hard in response to incentives, the rates of return to human capital investments, and
institutional factors that shape wage determination. Thus far, economists have had data on the
distribution of wages across individuals in the economy, but not on the distribution of wages
across individuals. Now with new matched employer-employee data sets, we can look at the
structure of wages as well as across individuals. New questions can be raised and addressed
empirically.

01/01/2023
The basic stages of preparing the
The wages and salaries system process goes
wage structure through a number of necessary stages, which
are:

The role of human resources is in the processes of designing 1 Determine goals and strategies
the wage structure, evaluating jobs, and studying wages in 2 Surveying the organization’s environment
other organizations and the labor market. As for managers, 3 Design the pay system
they propose the wage categories with which new employees 4 Maintenance of the wages system
can start, and suggest wage increases, allowances, and bonuses
before they are approved by human resources. They also
provide information to management. Human resources to
evaluate jobs.
II - The steps of designing
wage structure
Determine the
preliminary
Description
decisions to prepare
the structure
Choosing a job
evaluation method
+ laying the Showcasing job openings on our dedicated careers page
foundations for the
evaluation method
Implementing the
Utilising industry-specific job boards and professional networks
evaluation process

Define job structure Leveraging social media platforms

Grade pricing Tailoring advertising campaigns to reach specific candidate demographics

Wage structure
Engaging with diversity-focused networks and organisations
management
III - Designing the organizations wage
structure
Why designing a wage structure , what is the explication of variations in wages in comapnys?

After anylsing The manager negociate with hr manager to The manager decide to follow the points
find a new wage structuring method
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01 Determine
evaluation
factors
02

03
Evaluation 01 responsability

factors 06 experience

03 Education and formation

01

02 Divide evaluation factors into

sub-elements
03

04
Recruitment Methods
Recruitment Method Description

About the safety of subordinates

About the safety of equipment and raw materials

Responsability
About training new employees

About quality

Years of Experience

Experience Nature of work

Company type and size

Educational Qualification
Education and Postgraduate
formation
Training courses in the field of work

Skills Specialized interview result

bad conditions
Working condition
Risks

physical
Efforts
mental
02

03

Giving the evaluation factors

04

05 points according to practice

EVALUATION FACOTRS POINTS

RESPONSABILITY 310

EXPERIENCE 100

EDUACTION AND 100

FORMATION

SKILLS 80

WORKING CONDITIONS 120

EFFORTS 250
02
03

Distribution of sub-element points

04

05 into levels
 Factors and their levels
components Points Lowest ‫قليل‬ Meduim Highest

Responsability 310
About the safety of subordinates 100 25 50 75 100
About the safety of equipment and 80 20 40 60 80
raw materials
About training new employees 50 5 20 30 50
About quality 80 20 40 60 80
Experience 100
Years of Experience 50 5 20 35 50
Nature of work 25 5 15 20 25
Company type and size 25 5 15 20 25
Education and 100
formation

Educational Qualification 50 5 20 35 50
Postgraduate 25 5 15 20 25
Training courses in the field of work 25 5 15 20 25
skills 80
Specialized interview result 80 20 40 60 80
Work conditions 160
bad conditions 80 20 40 60 80
Risks 80 20 40 60 80
Efforts 250
physical 100 30 50 70 100
Mental 150 35 70 105 150
We must
Always Give
The Best to
Clients
 IV - Grade pricing

In general, the pricing of job grades depends on the policies and

practices implemented by the company or institution. Pricing job
grades is influenced by several factors, including the local labor
market, industry sector, company size, job requirements,
employee skills, and other factors.

Generally, the pricing of job grades is determined through wage

studies and market interviews to understand whether the offered
salaries are competitive and in line with the market value of the
positions offered. There may also be additional factors that
influence pricing, such as legal and regulatory factors and human
resource policies within the company.
 Es t ab l i s h i n g t h e f o u n d at i o n s o f t h e ev al u at i o n
01

Grade
met h o d

02 Implementation of the evaluation method

pricing 03 Define job structure

Following the next steps.

04 Project management job titles

05 Job grades

06 Grade pricing
The financial and economic affect
Finance
ly
Cost Control and Profitability: From a financial perspective, salary
structures directly impact an organization's cost structure. Labor costs typically
represent a significant portion of total expenses for most businesses. Therefore, an
effective salary structure is essential for controlling costs and maximizing
profitability. By carefully designing salary levels and benefits packages, organizations
can ensure they are allocating resources efficiently while still attracting and retaining
the talent necessary for business success.

Return on Investment (ROI) in Human Capital: Human capital is a critical asset for
organizations, and salaries represent investments in this capital. The financial
performance of an organization depends heavily on the productivity and
performance of its workforce. Therefore, the way salaries are structured can impact
the return on investment in human capital. By offering competitive compensation
packages and incentives tied to performance, organizations can enhance
productivity, leading to improved financial results.

Budgeting and Forecasting: A well-defined salary structure facilitates budgeting and

forecasting processes within organizations. Financial planning relies on accurate
estimates of labor costs, and a clear salary structure provides the basis for these
projections. By understanding the expected costs associated with salaries,
organizations can develop more accurate budgets and make informed decisions
about resource allocation, contributing to better financial management overall.
Revenue Generation and Economic Growth: The economic impact of
salary structures extends beyond the organization itself. Employees'
spending power, influenced by their salaries, contributes to overall
economic activity. When organizations offer competitive salaries and
benefits, employees have more disposable income to spend on goods and
services, thereby stimulating economic growth at both local and national
levels. This increased economic activity can have positive ripple effects on
businesses and communities, driving further revenue generation and
expansion opportunities.

Market Positioning and Investor Confidence: In the eyes of investors and

stakeholders, salary structures can reflect an organization's financial
health and strategic positioning. Consistently high labor costs relative to
revenue may raise concerns about profitability and operational efficiency.
Conversely, a well-managed salary structure that aligns with business
objectives and industry standards can enhance investor confidence and
support sustainable growth. Investors are more likely to support
companies that demonstrate prudent financial management, including
effective management of human capital costs.

In summary, the structure of salaries within organizations has profound

financial and economic implications. It directly affects costs, profitability,
investment returns, budgeting processes, revenue generation, market
positioning, and investor confidence. By carefully designing and managing
salary structures, organizations can enhance their financial performance,
drive economic growth, and create value for all stakeholders involved.
 Economicly
The structure of salary
payments within an economy
has far-reaching economic
Theoretical Knowledge
implications, impacting
aggregate demand, income
distribution, productivity,
labor market dynamics, and
government fiscal policy. By
promoting fair and
Canada
competitive salary structures, About country here

policymakers and businesses

can contribute to sustainable
economic development and
improved standards of living
for the population as a whole.
Economicly
1
Income Inequality and Distribution of
Wealth: The structure of salary
payments can impact income inequality
within a country. If salary structures are
skewed towards higher earners, it can
exacerbate income inequality, which has
broader socio-economic implications.
High levels of income inequality can
lead to social unrest, reduced social
cohesion, and hindered economic
growth. Conversely, salary structures
that promote fairness and equity can
contribute to a more balanced
distribution of wealth, fostering a more
2
inclusive and sustainable economic
Aggregate Demand and Consumption:
Salary structures significantly influence
the aggregate demand within an
economy. When workers receive higher
wages, they have more disposable
income to spend on goods and services.
This increased consumption drives
economic activity, leading to higher
demand for products and services,
which in turn stimulates production and
employment. Therefore, well-designed
salary structures that ensure adequate
compensation can contribute to
economic growth by fueling consumer
spending.
3
Government Fiscal Policy: Salary
structures also have implications for
government fiscal policy. Higher wages
lead to increased tax revenues for the
government, which can be used to fund
public services, infrastructure, and
social welfare programs. Additionally,
government policies related to minimum
wages and income taxes can influence
the distribution of income and
consumption patterns within the
economy. Therefore, policymakers must
consider the impact of salary structures
when formulating fiscal policies to
ensure they support economic growth
and social welfare objectives.
Labor Market Dynamics: The structure
of salary payments influences labor
market dynamics, including
employment levels, job mobility, and
skills development. Competitive salary
structures can attract skilled workers
and reduce turnover rates, leading to a
more stable and productive workforce.
Moreover, salary structures that reward
skills development and performance can
incentivize workers to invest in
education and training, enhancing the
overall quality of the labor force. These
4
factors contribute to a more dynamic
and resilient labor market, which is
critical for sustained economic growth
and competitiveness.
Summary Action Item Point Person

1 2 3
Before we go, let's list
down our action points for Add an
Identify
corresponding
Name the person
objective in charge
the coming week. tasks

Task 2

Task 3
Study case