Universal Compensable Factors



Universal Compensable Factors

Introduction

The Compensation System is designed to place emphasis on job duties and responsibility differences in an organization. It fosters a hierarchical organizational structure that will show the value differences in work content, skills, and contributions. This system will also create transparency so that employees have an increased understanding of how their compensation relates to other positions within the organization (Chi, 2007). A compensable factor is a characteristic in the work that the organization values which help to pursue its strategy and achieve objectives. Compensable Factors are used to define the criteria used to evaluate jobs (Sims& ...