Common Compensable Factors
- Experience Experience can include industry knowledge gained in other companies as well as experience within your company. Employers often reward seniority as a retention incentive because an employee’s ability to contribute increases over time. ...
- Education ...
- Supervisory Responsibility ...
- Budget Accountability ...
- Complexity ...
- Mental and Physical Demands ...
- Other Examples of Compensable Factors ...
What are the 4 compensable factors?
The Equal Pay Act of 1963 has defined 4 most basic compensable factors: effort, skill, responsibility and working conditions. There are usually 5 to 12 compensable factors in any evaluation procedure. The compensable factors are different for different evaluations.
What are some examples of compensable factors?
Other Examples of Compensable Factors Each job has a unique mix of valued criteria that are linked to successful outcomes for the company. Other examples of compensable factors may be communication skills, technical proficiency, consequences of errors, job knowledge, and time management.
How many compensable factors are there?
fourThere are four broad compensable factors, as defined within the United States Equal Pay Act of 1963, under which most compensable factors fall.
Which of the following is one of the four universal compensable factors?
Stack #373057QuestionAnswerWhich of the following are the four “universal compensable factors”?skill, effort, responsibility, working conditionsGeneralized work activities, organizational context, and work context are requirements under which O*NET category?occupation28 more rows
How do you identify compensable factors?
To be useful in comparing jobs, compensable factors should possess the following attributes:They must be present in all jobs.They need to be definable and measurable.The factor must vary across the company. ... They must be observable. ... They need to fit the organization.
What means 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.
What are the 3 compensable factors in job evaluation?
Typically the compensable factors include the major categories of:Skill.Responsibilities.Effort.Working Conditions.
What are the four component of a job description?
Job Description Components. A job description contains the following components: job title, job purpose, job duties and responsibilities, required qualifications, preferred qualifications, and working conditions.
What compensation factors would be a concern?
Here, we discuss the factors that influence compensation rates the most: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.More items...
Which of the following is not one of the universal compensable factors based on the Equal pay Act of 1963?
Compensable factors are factors that are rewarded with compensation. Accountability is not one of the factors established by the Equal Pay Act.
What are the factors determining job evaluation?
The internal worth of a job is evaluated based upon factors like – Know-How, Problem Solving, Accountability, Education, Experience, Complexity involved in the job, Scope of job, Supervision received and Authority Exercised. Know-How — The knowledge, skill and experience required for standard acceptable performance.
What are the five core job characteristics?
5 core job characteristicsTask identity. One of the core job characteristics in the JCM is task identity. ... Task significance. Another important job characteristic is task significance. ... Skill variety. ... Autonomy. ... Feedback. ... Delegate tasks to the lowest level that you can. ... Vary the tasks involved in a job. ... Assign teamwork.More items...
What are the 3 compensable factors in job evaluation?
Typically the compensable factors include the major categories of:Skill.Responsibilities.Effort.Working Conditions.
What compensation factors would be a concern?
Here, we discuss the factors that influence compensation rates the most: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.More items...
What is a compensable factor quizlet?
compensable factors are the characteristics of jobs that an organization values and chooses to pay for. These characteristics may include job complexity, working conditions, required education, required experience, and responsibility.
Which of the following is the definition of compensable factors quizlet?
Which of the following is the definition of compensable factors? They are the characteristics of jobs that an organization values and chooses to pay for. Compensable factors are employee's job characteristics that: the company is willing to pay for.
How do compensable factors relate to employee retention?
Employees who feel valued and compensated fairly will likely remain with their company longer than those who don’t. Compensable factors help ensure...
Can confidentiality be a compensable factor?
Confidentiality is often used as a compensable factor. The degree to which an employee handles confidential data with discretion can be important t...
Who should determine what the company's compensable factors are?
Typically senior leadership, HR team members, and members of the finance team are involved in determining compensation strategy for a company. Iden...
What is Compensable Factors ?from mbaskool.com
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. It is like the organization is willing to pay based on certain must have competencies or other eligibility factors. Compensable factors are usually determined and defined based on the values and objectives of the organization.
How many compensable factors are there in the Equal Pay Act?from mbaskool.com
The Equal Pay Act of 1963 has defined 4 most basic compensable factors: effort, skill, responsibility and working conditions. There are usually 5 to 12 compensable factors in any evaluation procedure. The compensable factors are different for different evaluations.
What are compensable factors for preparing a job description?from mbaskool.com
1. Experience- the prior experience of the employee, whether he has worked in similar industry previously or some other. 2. Education- all the educational qualifications that are mandatory for the job. 3.
What is complexity of duties?from mbaskool.com
6. Complexity of duties- the difficulty level of the task, whether too much decision making is required or not.
How many categories are there in management dictionary?from mbaskool.com
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.
What are compensable factors?from thehumancapitalhub.com
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.
How many ways can compensable factors be determined?from thehumancapitalhub.com
The Economic Research Institute further provides three common ways in which appropriate compensable factors can be determined.
When selecting compensable factors to use in job evaluation, what are the characteristics that need to be satisfied for the factors to?from thehumancapitalhub.com
They need to be definable and measurable. The factor must vary in degree.
When carrying out a job evaluation to determine the value of a job relative to others, what are compensable factors?from thehumancapitalhub.com
When carrying out a job evaluation to determine the value of a job relative to others, compensable factors are used to provide the basis for comparison. They help to rank each job in the company hierarchy, as well as, clearly identify what the company places value in and is willing to pay for. The entire evaluation is carried out to ensure that equal pay is received for work of equal value done. In this article, we will discuss compensable factors in more detail in the context of job evaluation.
What happens if two or more factors overlap?from thehumancapitalhub.com
If two or more factors are chosen, they should not overlap in meaning. If they do overlap, double weight may be given to one factor.
What are the factors that determine a person's ability to perform a job?from thehumancapitalhub.com
Skills, which encompass factors such as years of experience, level of education, and overall ability
Is responsibility a factor?from thehumancapitalhub.com
The factors must be observable in the jobs. For this reason, responsibility is a hard factor to use. Compensable factors can be thought of as the job-related contributions of employees. Documentation of the work-relatedness of factors comes from job descriptions.
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In Compensation there are four "universal compensable factors". List these factors, citing your reference (s) and explain why these are considered to be “universal”? 8 marks
Expert Answer
Skill requirements ,effort requirements, responsibility and working conditions are four important universal compensable factors compensable factors are normally do not … View the full answer
