What is pay philosophy? What purpose does it serve?
Expert Answer
Pay philosophy means the way the company values the differentemployees being working at different levels of organization.Thisphilosophy is in a statement form. In this statement, the questionof why the amount is paid to employee is being answered.Thisstatement provides complete detail of salary of employees.
Purpose of pay philosophy :
1. It helps in attracting employees.
2. It helps in retaining employees.
3. It helps in motivating employees.