What factor do you consider while developing new compensation packages and salary slabs?

What factor do you consider while developing new compensation packages and salary slabs?

A number factors influence the remuneration payable to an employee. These are broadly categories into two factors: External and Internal factors.
Factors external to an organization includes labour market, demand and supply of labour, cost of living, government legislations, the economy, labour union etc.
Internal factors have an impact on pay structure includes company strategy, job evaluation, performance appraisal. After considering these, a salary slap can be developed.