Determining fair compensation involves several steps:
1. Market Research: Conducting thorough market research to understand the industry standards and what competitors are offering. 2. Job Evaluation: Assessing the value of the job within the organization, considering factors like skills required, responsibilities, and impact on the business. 3. Internal Equity: Ensuring that employees in similar roles or with similar skills are compensated equitably within the organization. 4. External Equity: Aligning compensation packages with those offered in the broader job market.