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 examples of compensable factors?

  • Experience. How long should the incumbent have worked in this job or in closely related jobs to be fully qualified? …
  • Education. …
  • Responsibility. …
  • Complexity of duties. …
  • Supervision received. …
  • Supervision exercised. …
  • Consequences of error.

How do you identify compensable factors?

  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 is meant by compensable factors?

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.

What is the importance of compensable factors?

Compensable factors help employers pay employees fairly based on their merits and responsibilities. A compensable factor is a value or trait that employers use to determine how much to pay an employee.

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.

What are compensable factors SHRM?

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What are some of the compensable factors that might be used to adjust for variations in compensation?

The compensable factors used are usually (1) mental requirements, (2) physical requirements, (3) skill requirements, (4) responsibility, and (5) working conditions.

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 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.

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What is demotion in HRM?

A demotion refers to a permanent reassignment to a lower position than the employee had worked previously. Demotions can be either voluntary or involuntary and can occur due to poor employee performance, position elimination, disciplinary actions or organizational restructuring. …

Is the most widely used method in job evaluation and yields scores for each compensable factor?

Although there are numerous ways to evaluate jobs, the most widely used is the point-factor system, which yields job evaluation points for each compensable factor.

Which of the following theories is based on EL Thorndike?

Connectionism theory is based on the principle of active learning and is the result of the work of the American psychologist Edward Thorndike. This work led to Thorndike’s Laws. According to these Laws, learning is achieved when an individual is able to form associations between a particular stimulus and a response.

Which of the following is part of cash compensations offered to employees?

Cash Compensation is the sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period.

What is salary exempt status?

The term “exempt employee” refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay, nor do they qualify for minimum wage. When an employee is exempt, it primarily means that they are exempt from receiving overtime pay.

Which job category is non exempt quizlet?

Exempt employees are not covered by the overtime provisions under the Fair Labor Standards Act. Under the Fair Labor Standards Act, most of hourly workers involved in interstate commerce are considered nonexempt.

Why is job evaluation not as pervasive as performance appraisal?

Performance Appraisal is done for pay, transfer, promotion, or demotion, etc purpose whereas Job Evaluation is done for finding the value/worth of the job. Performance Appraisal is kind of a mandatory process and it is done for all the employees whereas Job Evaluation is not a compulsory process.

Why do we assign weights to compensable factors in job evaluation?

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 are the universal compensable factors used in the Hay Group method?

There are 4 universal compensable factors i.e. Skills, Responsibilities, Efforts and Working Conditions.

Why is it important to maintain some documentation to support the choice of compensable factors while developing a point plan?

Why is it important to maintain some documentation to support the choice of compensable factors while developing a point plan? –It is easier to understand. -It can withstand a variety of challenges to the pay structure. -It helps gain acceptance by employees and managers.

How do you factor comparison method?

  1. Selecting key jobs across the company, arund 20-25 jobs.
  2. Selecting corresponding evaluation parameters for each of the selcted jobs.
  3. Giving ranks to each job under each formulated factor in an independent fashion.
  4. Assigning an equivalent monetary value to each job parameter.

What is the ranking method?

Ranking method is one of the simplest performance evaluation methods. In this method, employees are ranked from best to worst in a group. … In this method, one employee is compared to another employee. The end result is an ordering of employees from best to worst.

What is a point factor job evaluation system?

Point-factor based job evaluation is a quantitative form of job evaluation that uses defined factors and levels within them. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the job based on the relevant level.

What is bonus HRM?

Bonus is a type of financial incentive given to employees, often as a reward or to increase morale and productivity. … Organizations use bonus pay as a way to improve morale and increase productivity among their employees, as well as to show appreciation for hard work and a job well done.

What is relationship between TQM and HRM?

Human resources play a key role in the implementation process of total quality management. Though Total Quality Management deals with the technical and operational, also logistical aspects, Human Resources Management (HRM) plays a key role in the effective adoption of TQM philosophy.

What is the meaning of retrenched employee?

“Retrenchment is the termination of employment initiated by the employer through no fault of and without prejudice to the employees. … It is an act of the employer of dismissing employees because of losses in the operation of a business, lack of work, and considerable reduction on the volume of his business.”

Is salary an employee benefit?

Employee benefits are defined as indirect, non-cash, or cash compensation paid to an employee above and beyond regular salary or wages. … These benefits include health insurance, life insurance, paid vacation, flexible work schedules and workplace perks like on-site snacks and meals.

What is a negative consequence of clustering jobs into pay grades?

What is a negative consequence of clustering jobs into pay grades? There may be pressure to reclassify borderline jobs or to promote people to get more money.

What does internal equity mean?

Simply put, internal equity means that employees with similar positions or skillsets within a company are compensated in a similar way, whether that be in their salary or any additional benefits that come with the position. In other words, internal equity is about equal pay for equal work.

What is the difference between Thorndike and Skinner?

Both psychologists developed their own theories on how to condition human behaviors; Thorndike’s theory is called the Law of Effect and Skinner’s theory is the Reinforcing Stimulus/Reinforcing Concepts. … This special stimulus has the effect of increasing the behavior occurring just before the reinforcer.

What is learning according to Thorndike?

Thorndike states that in learning is process between stimulus and respond. This theory have three main concept those are Law of Readiness Law of Exercise) and Law of Effect. In journey of his thought about this theory, Thorndike adds some law in his theory and modifies some of element in it.