Equitable payment in the R & D function

This paper discusses the problems associated with constructing equitable salary structures for Senior R & D employees. The use of job evaluation and performance appraisal are both considered. It is suggested that the decision band method of job evaluation is particularly useful in this context and a case study of its application within the R & D division of a large manufacturing firm is presented. Job grading and salary structuring in terms of decision-making responsibility are demonstrated. It is argued that the decision band approach assists rational administration of R & D in a number of ways including analysis and, perhaps, restructuring of the function. Methods of rewarding individual performance and measuring career development within R & D are also discussed in terms of the decision band concept.