You use reference points in fixed compensation plans to make sure all your employees are in the same range of pay thus making sure of equal payment for all.
You can set up as many steps as you like in the setup, but it regular to have minimum, midpoint and maximum. The midpoint is often the control point that indicates the average or median base pay rate for a compensation plan, often based on market analysis or the range in the organization.
When you set up Fixed compensation plans you can chose the compensation plan and set what is the control point.
1 thought on “MB6-898 Define reference points”