Internal Persistent Compensation System

1.0. Introduction
Internal consistent compensation system is a compensation system which is implemented in a situation where the employees trust that the organizations pay remunerations equivalent to the value of the job they performed in the company. On the other hand, market competitive compensation system is a situation whereby the organizations achieve external competitiveness by compensating the employees at similar rate as what others earn for specific positions within the same industries. It is noteworthy for a firm to ensure that it develops the compensation systems that are both internally consistent and market competitive for the employees in order to maintain the equity and equality and need when compensating the employees. In

Although the job evaluation is being conducted in order to define the internal value of the jobs, the employers should conduct counter-check the findings from the evaluation process as sometimes the findings are inaccurate and not fair. This will increase the level of responsibilities and stress to the employers. The job evaluation process is consists of job analysis, job descriptions and the job evaluations. Therefore, it is notable for the employers to ensure the accurate and reliable ratings from the entire job evaluation process in order to determine the complexity, importance, skills, required knowledge, abilities, effort, responsibility and the working conditions of a job as well as to classify them into appropriate pay

Companies use various approaches for piloting the job evaluation in order to find out the internal worth of each job for its employees. Although the job evaluation is crucial tool in defining the internal value of the jobs, the tool has its own limitations which cause major difficulties to the evaluator in completing the entire process. As the companies and the business expand, then the jobs in the companies also will increase. It is difficult to manage the job evaluation method when the number of jobs and positions is increases in matrix organizations. Since the job evaluations methods are very subjective in nature, it is really challenging to compare the new jobs with the existing one and the evaluation process have to be repeated whenever the employers add new jobs or roles to the organizations as well as the employers need to devote more time in this process. Thus, it is perceived that developing the internally consistent compensation system is a daunting task.
3.0. Challenges of companies in developing market competitive compensation systems
On the other hand, the employers need to ensure that the company is externally competitive while they achieving the internal equity concurrently. In order to achieve the external consistent, the employers face several challenges such as analysing their competitors, and setting appropriate pay