What is a market-based compensation system?
A market-based compensation system is one in which an organization aligns its pay programs with those of outside markets. Pay for UVU jobs is compared to similar jobs in other universities, colleges, companies, locally and nationally depending on the job, in which UVU competes for talent. When we cannot locate a match to an external position in the market, we use the Job Slotting Committee (JSC) to determine the grade of the internal position Designing a successful market-based compensation system calls for a delicate balance between often competing objectives: retaining, attracting, and motivating the most qualified employees and managing labor costs–especially as they relate to our growth. Compensation costs are a significant investment for UVU. We need to make wise compensation decisions in order to have a talented workforce, produce results as we grow, and effectively manage our financial resources. In a market-based compensation system, funding required to pay our employees compe
