What is compensable factors and give two examples?

What are compensable factors examples?

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?

Compensable factor

A job attribute described in a job evaluation plan that provides the basis for evaluating the relative worth of a job inside the organization. Each compensable factor has a number of different degree levels on which jobs are evaluated.

What do you mean by compensable factor explain with example?

Compensable factors can be simply understood as the criteria used to evaluate a job and on the basis of which salary/wages of the employee is computed. … The Equal Pay Act of 1963 has defined 4 most basic compensable factors: effort, skill, responsibility and working conditions.

Why is compensable factor important?

These compensable factors are the yardsticks used to determine the relative position of jobs. In a sense, choosing compensable factors is the heart of job evaluation. Not only do these factors place jobs in the organization’s job hierarchy, but they also serve to inform job incumbents which contributions are rewarded.

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What’s compensable mean?

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

How do you determine compensable factors?

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 is compensation factor?

The compensation an organisation pays to its employees depends on its ability to pay. This factor is less important in short run because there is a minimum wage level which a company must pay. In long run, ability of organisation to pay can affect the compensation decision.

What is a compensable factor quizlet?

compensable factors refer to. external market. exchange value of a job is its. hay guide. the most widely used job evaluation plan among large organizations is the.

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 is the relationship between compensable factors and job specifications?

What is the relationship between compensable factors and job specifications? Compensable factor is a fundamental element of a job such as skills, effort, responsibility and working conditions. The relationship with this and job specification is that they both focus on the aspects of the actual job to determine pay.

Why do we assign weights to compensable factors?

Assign Weights to Compensable Factors – This determines the relative amount of each compensable factor the job contains. Assume there is a total of 100 percentage points for each job that needs to be allocated among those compensable factors selected.

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What is direct and indirect compensation?

Direct compensation involves monetary payments to employees for time worked or results obtained. Indirect compensation involves expenditures made by an employer on behalf of all employees and is typically referred to as “fringe benefits.” Intangible compensation involves non-monetary rewards such as….

What is factor comparison?

Factor comparison is systematic and scientific method designed to carry out job evaluation which instead of ranking job as a whole, ranks according to a series of factors. The aim of factor comparison is to assign financial value to the relative parts of each job role.