Gerhart $(2023)$ stipulates that internal equity$--$the relationships among different jobs, skills, and competencies with progressive pay grades$-$forms the basis for any pay structure within an organization. Also, this internal equity must be compared to the jobs both within the competitive environment of the industry and the domestic region of the enterprise. After conducting this analysis, the internal and external components can be balanced to create an appropriate pay structure.

Moreover, this pay structure should stagger pay differentials progressively for job$-$ and person$-$based factors, such as job responsibilities and acquired skills for a position. Lastly, the number of pay levels, the differentials between the levels, and the criteria used to determine those differences should outline the pay structure.

A simplifed example of a pay structure for progressive Accounting positions in an organization obtained through a pay survey within a relevant market is provided below: