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  • Essay / Importance of fair and equitable compensation - 1156

    Employees must believe that all jobs are paid fairly. And that the employee must be confident that the company's pay rates reflect the overall importance of each person's work to the success of the organization. Some jobs offer more opportunities than others to contribute; those in these jobs should receive higher pay. The value of a job is generally assessed through a systematic process called job evaluation. Job evaluation scores focus on job requirements rather than the performance of individual job holders. The most common approach is the point factor method to assess compensable factors that represent the most important determinants of job value. Job descriptions are used to evaluate each job, one factor at a time until all jobs have been evaluated on all factors. ((Reference for