List the steps for building internally consistent compensation systems.

1. Perform
an internal analysis of your company to determine your employees compensation needs and
satisfaction with the current system. During this phase, you can to do the following:

• Since the managers spend most of the time with employees, conduct
  interviews with them to find out how employees are responding to the current compensation
  scheme. You should also find out whether the managers are for or against a new compensation
  scheme.
• You should also give questionnaires to employees to find out what
  motivates them.
• Find out if the current compensation plan is appropriate
  for the organization. Are the employees using their skills and talents to help the organization
  achieve its goals?

2. Carry out an external evaluation. This
step includes understanding industry compensation plans and knowing what competitors are paying
workers in a similar role.

3. Create a compensation plan. The steps involved
may include designing a new pay scale; setting the criteria for salary increases
and...