When considering an experienced employee's education and work experience for compensation purposes is it better to consider all Years of Education and Experience or only Relevant Education and Experience? The difference being should a company give vacation credit and greater compensation for all of a employee's work and education experience or just that which is relevant to the job the employee will be doing. The same thing goes for promotions or employees seeking career changes. If you do a peer comparison to figure out where the employee should fit in the salary band and level it is much easier to take current year subtract year of high school graduation and come up with a number. However, someone could have taken leaves of absence from work to travel the world, or worked in different careers/industries, not worked at all, and be given vacation credit and additional compensation. On the other hand it is very difficult to do a peer comparison of 3 or 4 people and sift through the details of their work and educational history. Efficiency vs Accuracy or is there a better tool to use. What about people who didn't graduate from high school until mid career or not at all, their number is lower or doesn't have one at all.
Pay for the job? The employee's experience? expertise? education? Pay for performance?
Compensation strategy, policies and practices are required to maintain consistency and equal and fair treatment.
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