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[Music] lets take a look at pay structures from an employers point of view pay is a powerful tool for meeting the organizations goals pay has a large impact on employee attitudes and behaviors it influences which kinds of employees are attracted to the organization by rewarding certain behaviors it can align employee interest with organizational goals employees care about policies affecting earnings because policies affect the employees income and standard of living besides the level of pay employees care about the fairness of pay compared to what others earn they attach great importance to pay decisions when they evaluate their relationship with their employer for these reasons organizations must carefully manage and communicate decisions about pay at the same time pays a major cost depending on the industry the cost might range from an amount equivalent to five percent of revenues up to almost 40 percent keeping these costs reasonable is therefore important in achieving profit e
