Employee seniority is generally a good choice for a compensable factor for job evaluation
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Read the highlightsA job evaluation plan is a tool that helps your startup determine the internal value of a job in order to assign the appropriate salary level. The job evaluation plan defines the compensable factors used to assess the relativity of jobs within an organization. The job relativity can be aligned with the external worth of the same jobs by reviewing benchmark data (described in more detail below). Primary compensable factors of a job evaluation planThe point factor method is the most commonly used approach to job evaluation. This method identifies four primary compensable factors used to determine pay. These factors include:
Tailoring the compensable factors for your startupWhen identifying compensable factors, ensure that employees as well as management are part of the job evaluation process so that you gain their buy-in. To be useful in comparing jobs, compensable factors should possess the following attributes:
Creating a job evaluation planA job analysis describes a job. A job evaluation involves a means to compare jobs in terms of what the organization wants to “pay for” or to decide what is of value to them. Creating a job evaluation plan involves a number of steps:
Ontario pay equity legislation and job evaluation requirementsAll organizations in Ontario with 10 or more employees are responsible to ensure that they meet Ontario’s pay equity legislation, so it is necessary for even small companies in the province to have a job evaluation plan. Having a job evaluation plan will enable you to compare female and male jobs according to their job value, to ensure pay equity. Another method of job evaluation, market pricing, while easier to implement, does not meet Ontario’s Pay Equity Act requirements without the addition of an internal job-based valuation system. Getting started with job evaluations at your startupJob evaluation is often seen as a cumbersome, complicated and time-consuming process, especially for small companies without a human resources (HR) staff to support it. Employees may regard it as a “black box” that generates a mystifying salary rate. The good news is that with some guidance, the job evaluation process can be simplified and understood by executives and employees. If you are unsure where to start, create standard job descriptions for each employee that include the compensable factors mentioned above. This will act as the foundation for your job evaluation plan. It is highly recommended to seek the advice of an HR professional who has experience with job evaluation. Summary: By comparing different compensable factors, a job evaluation plan helps you assess the value of one job relative to another in order to assign the appropriate salary level; in Ontario, such a plan is required by law if you have 10 or more employees.What are the 3 compensable factors in job evaluation?Typically the compensable factors include the major categories of:. Skill.. Responsibilities.. Effort.. Working Conditions.. What do you consider as the most important compensable factor for an employee?These factors include: Skills (years of experience, level of education and overall ability) Responsibilities (number of direct reports, fiscal accountability and the list of responsibilities of the position itself), Mental and physical effort (degree and amount of concentration, level and frequency of physical effort)
What should compensable factors be based on?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.
What are the 3 compensable factors in job evaluation explain its value particularly to compensation and benefits?Common Compensable Factors. The Equal Pay Act of 1963 sets forth broadly used factors—namely skill, effort, and responsibility under similar working conditions–that may be used to compare the value of the jobs in the workplace. Most companies separate these into specialized subfactors.
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