Modern compensation systems do not merely differentiate according to the type of service and the level of performance in variable compensation, but also aim to consistently address discrepancies in requirements and competences in basic compensation.
In this context, the move away from seniority-based models is becoming increasingly apparent.
Modern basic compensation systems honour the acceptance of higher-level requirements be a clear differentiation of base-salary correlations (career via the job) and provide broader salary ranges by way of clearly broader salary correlations (career via the job), to meet the demands imposed by flexible organisations and the varying content of jobs.
Under "Topic-Relevant Articles and Documents“, you will find, among other content, remarks on the following base-salary models:
- Rate-associated systems
- Seniority-based systems
- Traditional grading systems
- "Broadbanding" systems
- Competence-based systems
- Job/family-based systems
- Market-associated systems
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further information on this topic
- Vergütungsaudit Global Compensation Audit (197 KB / PDF)