PayScale’s Compensation Glossary: Part 4 of 4

SECTION FOUR: PAY CONCERNS AND PAY RAISES

1) INTERNAL vs. EXTERNAL EQUITY

Definition: Internal equity exists when employees at a company perceive that they are being rewarded fairly according to the relative value of their jobs. External equity exists when …

#1 goal this year: get pay raises right!

There’s a vicious cycle that happens in organizations across the globe. Each year, employees eagerly anticipate getting their performance reviews completed so that they can start benefitting from a much-deserved pay raise. But when the results come in, they are …

Four raises a year

Tessara Smith,  PayScale

One of the latest trends in employee compensation and motivation is giving employees four (small) raises a year as opposed to one large raise. Many companies have become strong proponents of this innovative payment strategy and executives …