FACTORS TO CALCULATE COMPENSATION
This method is used in the job evaluation process in HR Management. Job evaluation means that we only define the basic salary of every job in our company. We still have to calculate the total salary by adding incentives and other components such as insurance. Basically, job evaluation means systematic comparison to define the value of a job relative to another job in a company.
One of the most general methods is the Point Assessment Method since this method combines quantitative and qualitative aspects.
POINT ASSESSMENT METHOD
Here are the steps to do this job evaluation method:
1.) Choosing the job factors, specifications of jobs that are considered worthy to be paid by the company. We can also describe the subfactors to get more accurate results. Here are some examples of the factors:
A. Knowledge
A.1. Formal Education
A.2. Course/Training
A.3. Experience
B. Skill
B.1. Physical Skill
B.2. Mental Physics
B.3. Language/Communication Skill
B.4. Analytical Skill
B.5. Dexterity
B.6. Relationship Building
B.7. Decision Making
C. Effort
C.1. Physical Effort
C.2. Mental Effort
D. Responsibility
D.1. Responsibility of Space
D.2. Responsibility of Equipment
D.3. Responsibility of Material
D.4. Responsibility of Work Health and Safety
D.5. Responsibility of Company's Information
E. Working Condition
E.1. Working environment
E.2. Risk of Work Accident
2.) Create definitions and degrees for each factor and subfactor.
The factor definitions must be clear and easily understood – doesn’t have double meaning. The degree should also be clear and not mix with one another. The degree should be minimal but still able to fairly differentiate each evaluated job.
3.) Define a relative scale for each factor and subfactor.
The scale is made according to the consensus of the assessor team and the leaders of the company. This process could be considered subjective.
4.) Define the numerical value for every factor and subfactor, according to this order:
a) Define the maximum value of total points that will be used.
b) Define the value of each factor and subfactor by multiplying the factor scale by the minimum value.
c) Define the value for every degree.
5.) Calculate the value of every job.
If you need examples of how to do this method, please let me know. I hope this information will help you. Thank you and good luck.
PS: Also, check out the Hay Guide Point System and Competency-Based Pay.
From Indonesia, Bandung
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2This method is used in the job evaluation process in HR Management. Job evaluation means that we only define the basic salary of every job in our company. We still have to calculate the total salary by adding incentives and other components such as insurance. Basically, job evaluation means systematic comparison to define the value of a job relative to another job in a company.
One of the most general methods is the Point Assessment Method since this method combines quantitative and qualitative aspects.
POINT ASSESSMENT METHOD
Here are the steps to do this job evaluation method:
1.) Choosing the job factors, specifications of jobs that are considered worthy to be paid by the company. We can also describe the subfactors to get more accurate results. Here are some examples of the factors:
A. Knowledge
A.1. Formal Education
A.2. Course/Training
A.3. Experience
B. Skill
B.1. Physical Skill
B.2. Mental Physics
B.3. Language/Communication Skill
B.4. Analytical Skill
B.5. Dexterity
B.6. Relationship Building
B.7. Decision Making
C. Effort
C.1. Physical Effort
C.2. Mental Effort
D. Responsibility
D.1. Responsibility of Space
D.2. Responsibility of Equipment
D.3. Responsibility of Material
D.4. Responsibility of Work Health and Safety
D.5. Responsibility of Company's Information
E. Working Condition
E.1. Working environment
E.2. Risk of Work Accident
2.) Create definitions and degrees for each factor and subfactor.
The factor definitions must be clear and easily understood – doesn’t have double meaning. The degree should also be clear and not mix with one another. The degree should be minimal but still able to fairly differentiate each evaluated job.
3.) Define a relative scale for each factor and subfactor.
The scale is made according to the consensus of the assessor team and the leaders of the company. This process could be considered subjective.
4.) Define the numerical value for every factor and subfactor, according to this order:
a) Define the maximum value of total points that will be used.
b) Define the value of each factor and subfactor by multiplying the factor scale by the minimum value.
c) Define the value for every degree.
5.) Calculate the value of every job.
If you need examples of how to do this method, please let me know. I hope this information will help you. Thank you and good luck.
PS: Also, check out the Hay Guide Point System and Competency-Based Pay.
From Indonesia, Bandung
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Hay method of job evaluation.pdf
Job Evaluation.ppt
Method of calculation of wages.doc