1. Establishing an orderly, rational, systematic structure of jobs of the organisation based on their relative worth.
2. Justifying an existing pay rate structure or developing one that provides for internal equity that ensures consistency and ethical treatment. This will enable employees to compare their pay with similar jobs in the organisation.
3. Assisting in setting pay rates that are comparable with similar jobs in other organizations. This enables the organisation to compete in the market for the best available talents and also allows employees to compare the pay they receive with others doing similar work in other organizations.
4. Providing a rational basis for negotiating pay rates when bargaining collectively with a recognized union.
5. Identifying a ladder of progression or direction for future upward movement for all employees interested in improving their compensation opportunities.
6. Complying with equal pay legislation and regulations determining pay differences according to job content.
7. Developing a base for a merit based pay or pay-for-performance programme.
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