Final answer:
In the second step of developing a total compensation package, market data is analyzed to establish competitive salary rates and a framework for compensation levels, balancing base pay with additional benefits. Whether the total package compensates for low base pay depends on employees' values and needs. It's common for renegotiation of pay to occur after a performance review within 6-12 months.
Step-by-step explanation:
The second step of developing a total compensation package typically involves analyzing market data to determine competitive salary rates for similar positions and establishing a framework for compensation levels. This can include considering the balance between base salary and additional benefits such as insurance, retirement savings plans, bonuses, and other perks that might offset a potentially lower salary. Regarding whether a total compensation package can make up for low pay, it depends on the value the employee places on the additional benefits. For instance, if the benefits align closely with the employee's needs and priorities, such as having a robust health plan or generous paid time off, they may find the total package to be satisfactory despite a lower base salary. Lastly, regarding the possibility of renegotiation, it is common for employees to discuss the potential for salary reviews during the hiring process. Many companies are open to assessing an employee's performance 6-12 months after starting, and based on the results, they may consider a compensation adjustment.
It's important to note that the steps to develop a compensation package and its effectiveness can be influenced by various economic factors and industry trends, such as the shift from traditional methods of communication to digital formats in the case of postal workers.