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in step 5 we create a base pay structure the internal structure developed through job evaluation is merged with external market pay rates in a pay line from which grades and ranges are developed for our compensation plan building a compensation plan is a simple seven step process that will ensure your compensation is internally aligned externally competitive and well-managed external competitiveness is the second functional area of building a compensation plan and refers to the pay comparisons with our competitors other organizations that hire people with the same or similar knowledge skills and abilities external competitiveness requires us to complete Market Analysis which we then use to create our base pay structure in step 5 we build a base pay structure building a base pay structure is the process by which we create the pay grades and ranges from job evaluation and Market Analysis job evaluation points are merged with the external market pay rates in a pay line from which grades a
