Which option is NOT a component of building an effective salary structure?

Creating performance metrics is not a direct component of building an effective salary structure. An effective salary structure is primarily concerned with how jobs are valued and compensated within an organization. This involves several key components:

Defining job roles is crucial as it clarifies the responsibilities and requirements for each position, ensuring that jobs can be accurately evaluated and compared. Setting pay ranges establishes the minimum and maximum salary levels for each job role based on their defined value in the market. Establishing salary zones helps to segment different roles and pay levels, aligning compensation systematically based on job hierarchy or market benchmarks.

While performance metrics are important in the broader context of managing employee performance and ensuring fair compensation based on performance, they do not directly relate to the foundational structure of how salaries are set or organized within an organization. Instead, performance metrics could be seen as a separate process that informs decisions about individual raises, bonuses, or incentives, but they do not form a part of the fundamental salary structure itself.