compensable factors of a job evaluation plan
The point factor method is the most commonly used approach to job evaluation.
This method identifies compensable factors used to determine pay. 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)
Working conditions (overall environmental factors such as location, hazards and any extreme factors)
Designate an individual to oversee designing the compensation program.
(e.g., hourly versus salaried rates, incentive-based versus non contingent pay).
Determine whether the company should set salaries at, above, or below market.
Decide the extent to which employee benefits should replace or supplement cash compensation.