Best answer: What are the compensable factors associated with executive compensation?

What are the compensable factors that can be considered for deciding executive compensation?

Here, courtesy of BLR’s Job Descriptions Encyclopedia, are the primary compensable factors:

  • Experience. …
  • Education. …
  • Responsibility. …
  • Complexity of duties. …
  • Supervision received. …
  • Supervision exercised. …
  • Consequences of error.

What are compensable factors in compensation?

What Is a Compensable Factor? Compensable factors include skills, licenses, certifications, years of experience, educational requirements, working conditions, reporting structures, managerial responsibilities, and other factors that can impact the price of a job in a given pay market.

What are the compensable factors?

Typically, compensable factors include effort, skill needed in order to perform a job, and responsibility. These factors are used to establish job worth when creating a job hierarchy in order to set a wage structure.

What are the elements of executive compensation?

The 5 Most Important Elements of Executive Compensation Packages

  • Base pay. …
  • Benefits. …
  • Short-term incentive compensation. …
  • Long-term incentive compensation. …
  • Executive perks.

What factors determine compensation?

5 essential factors for determining compensation

  • Years of experience and education level. …
  • Industry. …
  • Location. …
  • In-demand skill sets. …
  • Supply and demand. …
  • The cost of not offering competitive pay. …
  • What happens if you can’t pay market value? …
  • Take the guesswork out of determining compensation.
IT IS IMPORTANT:  How do hotels handle wake up calls?

What are the five most commonly used compensable factors in a factor comparison system?

The judgments permit construction of a comparison scale of key jobs against which other jobs may be compared. The compensable factors used are usually (1) mental requirements, (2) physical requirements, (3) skill requirements, (4) responsibility, and (5) working conditions.

What are the four compensable factors?

The Equal Pay Act of 1963 has defined 4 most basic compensable factors: effort, skill, responsibility and working conditions.

What’s compensable mean?

: that is to be or can be compensated a compensable job-related injury.

Which of the following is true about compensable factors?

Which of the following is true of compensable factors? They are the characteristics of jobs that a firm values and chooses to pay for. … A rate of pay for each unit produced is known as: piecework rate.

What are the factors affecting employee compensation?

Factors Affecting Employee Compensation – External and Internal Determinants of Compensation

  • Labour Market Conditions:
  • Economic Conditions:
  • Prevailing Wage Level:
  • Government Control:
  • Cost of Living:
  • Union’s Influence:
  • Globalization:
  • Cross Sector Mobility:

What is compensable factors How does an organization determine compensable factors?

Compensable factors are the criteria used in evaluating a job and determining the salary level a particular job is due. They represent the aspects that a company values and are willing to pay for. Therefore, compensable factors are typically identified and classified based on the company’s values and culture.

What is a compensable injury?

A compensable injury occurs when an activity associated with the performance of work duties results in an injury, which may result in the payment of benefits.

IT IS IMPORTANT:  Your question: Is meet up correct grammar?