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Compensable Factors
Let’s learn more about compensable factors. All of these evaluation methodologies are based on one or a combination of the following two approaches: (1) an analysis of the job as a whole or (2) an analysis of the job’s individual components
Most evaluation methods compare jobs in the organization to one another and a few compare jobs against a set scale. After a review of the various job evaluation methodologies, the compensation management system will retain a modified version of the position classification method or whole job evaluation approach. This non-quantitative whole job approach determines the relative value of positions by comparing them with job descriptions as well as with other positions.
Human resource professionals or line managers should be able to assign positions to the appropriate career groups by comparing the overall duties and responsibilities listed in the employee work profile to the concept of work outlined in the career group description. The compensable factors will be used primarily to determine the appropriate role to which a position should be allocated within a career group.
Definitions of the three compensable factors are as follows:
Complexity of Work
- This factor describes the nature of work in terms of resources (e.g., machines, manuals, guidelines and forms) used or encountered and the processes applied. This factor takes into account the number and variety of variables considered, the depth and breadth of activity and the originality exercised.
Difficulty
- the relative character of the work process and the corresponding, thinking, analysis and judgment required of the employee while doing the work.
- Scope and Range of Assignments – the breadth and variety of the employee’s assignments Knowledge, Skills and Abilities – the level of information, experience and qualifications needed by the employee in order to perform the assigned duties Nature of Contacts – the extent of the employee’s human interactions within and/or outside the organization in terms of both frequency and the depth of information exchanged.
Results
- This factor describes the work outcomes and the range and impact of effects, such as the benefit or harm to citizens, the gain or loss of resources and the goodwill created.
Impact
- the range of people, things, and organizations directly affected by the employee
- Effect of Services – the extent to which decisions and work products made by the employee affect the level of service, quality of work, welfare of constituents, the organization’s image and cost of operations.
- Consequence of Error – the potential costs of the employee’s mistakes in terms of financial and human costs, efficiency, morale, physical maintenance and image.
Accountability
- This factor describes the employee’s responsibility or authority exercised in terms of guidance given to fellow workers, independence and autonomy of functioning and finality of decisions made.
