Pay structures should have an intended life (see U 4307). Upon completion of that life-span, pay structures should be reviewed, adjusted as needed, and given a new life-span. Pay structures should also be reviewed constantly during the course of their lives to determine if adjustment is necessary before their intended lifespan has run its course. Once a pay system is put together there are a number of adjustments that may need to be made to it. For example, it may be necessary to... redesign pay grades, redesign pay structures, allow for red circle rates, or allow for green circle rates,and in the case of certain jobs, it may be necessary to... redo the job analysis process, rewrite job descriptions, and reevaluate the jobs.Generally, one or all of the three following reasons create the need to adjust pay structures: economics, job description changes, or changes in laws and governmental regulations.
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