Can anyone tell me what type of impact compensable factors of a position have on that positions salary?
From United States, Carol Stream
From United States, Carol Stream
Hi!
Compensable factors refer to the critical aspects of a job that business organizations consider to be their "points of reference" (standard or benchmark) in determining the size and value of a job to their company. HR practitioners generally agree that these factors refer to the following: skills, effort, responsibility/ accountability, & working conditions/ environment. These factors are often given sub-factors (that will further clarify the scope of the factor) and then given their relative weights (in numerical points) to be able to objectively and consistently use them as a measuring tool. When this approach is used, it is said that the company wants to evaluate its jobs by using the "point factor method"! Indeed, the most popular tools in Job Evaluation (JE) uses point factor rating methodology.
In the point factor methodology, all jobs that are evaluated get their corresponding "points score". These point scores become the basis for determining the "job grade" of jobs. A good and complete JE point factor methodology or system must be able to tell you immediately the correct job grade and job classification of a particular job based on the scores that they get after evaluation. And, generally, the job grade that a job gets (based on their score) will enable one to determine the objective market value of the said job, when bench-marked with the market compensation survey done and published in a particular locality.
The point factor methodology is a very popular tool because it is considered to be more objective and consistent, compared with the other methods used in the evaluation of jobs.
But I would like to caution HR practitioners that the use of the point factor method needs a lot of experience to be able to make people understand it. HR should be able to make employees and management understand the system that it uses in determining the sizes and equivalent market pay for all the jobs in their company.
My company has competence and expertise in setting up a point factor method of JE in any type of organization anywhere in the world. We can help you---- if you have a budget for this activity. We are just a phone call and email away. Please visit our website: www.freewebs.com/emillaconsulting
Best regards.
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
From Philippines, Parañaque
89Compensable factors refer to the critical aspects of a job that business organizations consider to be their "points of reference" (standard or benchmark) in determining the size and value of a job to their company. HR practitioners generally agree that these factors refer to the following: skills, effort, responsibility/ accountability, & working conditions/ environment. These factors are often given sub-factors (that will further clarify the scope of the factor) and then given their relative weights (in numerical points) to be able to objectively and consistently use them as a measuring tool. When this approach is used, it is said that the company wants to evaluate its jobs by using the "point factor method"! Indeed, the most popular tools in Job Evaluation (JE) uses point factor rating methodology.
In the point factor methodology, all jobs that are evaluated get their corresponding "points score". These point scores become the basis for determining the "job grade" of jobs. A good and complete JE point factor methodology or system must be able to tell you immediately the correct job grade and job classification of a particular job based on the scores that they get after evaluation. And, generally, the job grade that a job gets (based on their score) will enable one to determine the objective market value of the said job, when bench-marked with the market compensation survey done and published in a particular locality.
The point factor methodology is a very popular tool because it is considered to be more objective and consistent, compared with the other methods used in the evaluation of jobs.
But I would like to caution HR practitioners that the use of the point factor method needs a lot of experience to be able to make people understand it. HR should be able to make employees and management understand the system that it uses in determining the sizes and equivalent market pay for all the jobs in their company.
My company has competence and expertise in setting up a point factor method of JE in any type of organization anywhere in the world. We can help you---- if you have a budget for this activity. We are just a phone call and email away. Please visit our website: www.freewebs.com/emillaconsulting
Best regards.
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
From Philippines, Parañaque
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