Payment Policy Literature & Language Essay Research (Essay Sample)

Pay Policy
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Pay Policy
Pay policy refers to the rules and regulations that govern compensation of employees for the services they offer to an organization. The current market system is very competitive and therefore the pay policy should be quite competitive to match the existing market trends. Pay policy outlines the manner in which salaries and remunerations are determined (Morgan & John Wiley & Sons., 2014, p. 87). The pay policy works to ensure transparency and accountability as far as setting payment system is concerned. It describes the methods of establishing salaries and severance payments. It also outlines the committees responsible for ensuring that payment policy is applied steadily (Morgan & John Wiley & Sons., 2014, p. 87). On the same note, pay policy describes the payment structure for every category of employees, from the lowest paid to the highest paid. In this regard, it relates to the payment ratio of top earner to the lowest earner.