How do you determine compensable factors?

How do you identify compensable factors?

To be useful in comparing jobs, compensable factors should possess the following attributes:

  1. They must be present in all jobs.
  2. They need to be definable and measurable.
  3. The factor must vary across the company. …
  4. They must be observable. …
  5. They need to fit the organization.

What are the compensable factors in HR?

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

What are the four universal compensable factors?

The compensable factors used are usually (1) mental requirements, (2) physical requirements, (3) skill requirements, (4) responsibility, and (5) working conditions. These are considered to be universal factors found in all jobs.

What is the definition of compensable factor?

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.

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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’s compensable mean?

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

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.

Which job evaluation method uses a set of compensable factors to determine the value of each job?

The point factor method is a commonly used quantitative technique. This approach breaks down jobs into compensable factors identified during a job analysis. Points are assigned to the factors, and a pay structure is established for the position.

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.

What do you mean by compensable factor explain with example explain the universal compensable factor?

Any factor used to provide a basis for judging job value in a job evaluation scheme. 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.

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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.

What is the ranking method?

Ranking Method is the simplest form of job evaluation method. The method involves ranking each job relative to all other jobs, usually based on some overall factor like ‘job difficulty’. … All jobs are ranked in the order of their importance from the simplest to the hardest or from the highest the lowest.