Facing the Market

How Best to Align Remuneration Levels

Reilly P, Silverman M | HR Network Paper MP31 | Institute for Employment Studies | Apr 2004

Over time, there has been a general shift away from considerations of internal equity towards external equity. The value of a specific job role has become less about the particular skills that the employee brought to the job and more about its market price.

This paper discusses how to establish the value of a job and looks at the issues of occupation, sector and location. The authors answer the question 'what drives interest in market-based pay?' and examine market-based pay in practice.