Sample interview questions: Can you explain the concept of pay progression and how it is managed in compensation programs?
Sample answer:
Concept of Pay Progression
Pay progression refers to the structured advancement of an employee’s salary within a specific job classification or role over time. It is a systematic approach to rewarding employees for their contributions, experience, and performance.
Management in Compensation Programs
Pay progression is typically managed through a combination of:
- Salary Ranges: Each job classification has a defined salary range with minimum and maximum limits.
- Progression Steps: The salary range is divided into multiple steps or levels, each representing a specific level of experience, competence, or performance.
- Eligibility Criteria: Employees must meet specific criteria to advance to higher progression steps, such as time in role, performance ratings, or completion of training programs.
- Pay Progression Curves: Organizations may establish pay progression curves that dictate the percentage or amount of salary increase an employee receives at each progression step.
Advantages of Pay Progression
- Employee Motivation and Retention: Pay progression provides employees with a clear path for career advancement and financial growth, increasing their motivation and loyalty to the organization.
- Fair and Equitable Compensation: Pay progression ensures that employe… Read full answer
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