FACTORS TO CALCULATE COMPENSATION
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This method is used in 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 the incentive and other components such as insurance. Basically job evaluation means systematic comparation to define the value of a job relatively to another job in a company.
One of the most general method is Point Assesment Method since this method combines quantitative and qualitative aspects.
POINT ASSESMENT METHOD
Here are the steps to do this job evaluation method :
1.)Choosing the job factors, spesifications of jobs that are considered worthy to be paid by company. We can also describes the subfactors for getting more accurate result. 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. Languange / Communication Skill
B.4. Analytical Skill
B.5. Dexterity
B.6. Relationship Building
B.7. Decission 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 a definitions and degrees of each factors and subfactors.
The factor definitions must be clear and easily understood – doesn’t have double meaning. The degree has also to be clear and doesn’t mix with one another. The degree should be minimum but it still able to fairly differentiate each evaluated jobs.
3.)Define relative scale of each factors and subfactors.
The scale is made according to concession of assessor team and leaders of the company. This process could be said subjective.
4.)Define the number value for every factor and subfactors, according to this order :
a)Define maximum value of totoal points that will be used.
b)Define value of ecah factors and subfactors by multiplying the factor scale with the minimum value.
c)Define the value for every degree.
5.)Calculate the value of every job.
If you need the examples of how doing this method please let me know. I hope this information will help you.* Thank you and good luck.
PS : Also check out Hay Guide Point System and COmpetency Based Pay
From Indonesia, Bandung
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This method is used in 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 the incentive and other components such as insurance. Basically job evaluation means systematic comparation to define the value of a job relatively to another job in a company.
One of the most general method is Point Assesment Method since this method combines quantitative and qualitative aspects.
POINT ASSESMENT METHOD
Here are the steps to do this job evaluation method :
1.)Choosing the job factors, spesifications of jobs that are considered worthy to be paid by company. We can also describes the subfactors for getting more accurate result. 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. Languange / Communication Skill
B.4. Analytical Skill
B.5. Dexterity
B.6. Relationship Building
B.7. Decission 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 a definitions and degrees of each factors and subfactors.
The factor definitions must be clear and easily understood – doesn’t have double meaning. The degree has also to be clear and doesn’t mix with one another. The degree should be minimum but it still able to fairly differentiate each evaluated jobs.
3.)Define relative scale of each factors and subfactors.
The scale is made according to concession of assessor team and leaders of the company. This process could be said subjective.
4.)Define the number value for every factor and subfactors, according to this order :
a)Define maximum value of totoal points that will be used.
b)Define value of ecah factors and subfactors by multiplying the factor scale with the minimum value.
c)Define the value for every degree.
5.)Calculate the value of every job.
If you need the examples of how doing this method please let me know. I hope this information will help you.* Thank you and good luck.
PS : Also check out Hay Guide Point System and COmpetency Based Pay
From Indonesia, Bandung
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