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April 16, 2010
7 Objectives of Pay Programs

In a BLR webinar titled "Compensation 101: Essential Secrets and Strategies for HR Professionals," Paul R. Dorf outlined the seven primary objectives of pay programs:

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  1. Attract qualified employees
  2. Retain trained and capable staff
  3. Encourage desired performance
  4. Be equitable and fair
  5. Provide predictability and security
  6. Be cost effective
  7. Meet legal and regulatory requirements

Dorf also outlined the influencing factors that determine pay levels. These include:

  • Market conditions
  • Geographical differentials
  • Industry factors
  • Duties and scope of responsibilities
  • Individual performance factors
  • Regulations
  • Discriminatory factors
  • Familial and ownership factors

Unfortunately, a lot of studies show that women do not make as much as men in many positions. These are the result of discrimination, which still occurs. Another problem is favoritism among familial lines, which should be removed from the company environment, but unfortunately is not.

Paul Dorf is the Managing Director of Compensation Resources, Inc. (CRI). CRI ( specializes in providing comprehensive Compensation and Human Resource consulting services. Dorf is responsible for directing consulting services in all areas of executive compensation, short and long term incentives, sales compensation, performance management programs, and salary admin programs.

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