"Internal alignment, often called internal equity, refers to the pay relationships among different jobs/skills/coompetencies within a single organization. The relationships form a pay structure that should support the organization strategy, support the work flow, be fair to employees, and motivate behavior toward organization objectives," according to Milkovich and Newman in the book Compensation.
Reviewing The Compensation Program
On way that companies can do this is by reviewing their compensation program or pay structure in relation to the job duties and responsibilities. For example, an entry level worker would usually make less than an executive manager or senior staff person. Reasons for differences may include higher level workers working under less supervision, being expected to resolve problems on their own, and having more education/experience/technical skills. Not all jobs are they same and therefore compensation would not be the same
