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[Music] HR basics is a series of short courses designed to highlight what you need to know about a particular human resource management topic in todays HR basics we explore how to build a compensation plan outlining the seven steps use to create a pay structure compensation is pay provided by an employer to an employee in return for work building a compensation plan takes you through seven critical steps to formulate a base pay structure and manage your compensation plan to be effective compensation must be perceived by employees as fair competitive in the market accurately based motivating and easy to understand HR professionals might create a compensation plan for their organization or they might work with an external compensation consultant a basic model for building a compensation plan includes internal alignment external competitiveness and compensation management seven steps fit into each of these areas including job analysis job evaluation pay policy market analysis base pay st
