Compensation

Question 1

What are the main functions of compensation?

Answer 1

1. Attract talent - with right qualifications
2. Motivate employees - good performance
3. To retain employees - using systems such as benefit s

Question 2

Define job analysis

Answer 2

• the process of gathering documentation and details about a job

Question 3

What is job evaluation?

Answer 3

A system to assess the relative value of a job

Question 4

What are the 3 key structures attached to job evaluation?

Answer 4

Internal equity
Pay structure
Salary decisions

Question 5

What are the methods of job evaluation

Answer 5

• ranking
  -point factor
  -job classification
  -factor comparison

Question 6

What is the job ranking process and a pro and con?

Answer 6

• jobs ranked at their level of importance or value

Pro
- simple and easy

Con
- difficult to maintain

Question 7

What is the point factor process and a pro and con?

Answer 7

Factors that make up a job, such as skill effort and responsibility

Pro- more detailed
Con-time consuming

Question 8

Factor comparison model

Answer 8

Combination of factor and then comparing them to scale that which had previously been developed

Pros
- more precise than simple ranking

Cons
- moderately complex

Question 9

What is the hays point system

Answer 9

Used as a method for evaluating jobs, particularly in the context of compensation and job classification

Question 10

External benchmarking

Answer 10

• comparing an organisations pay practices to that of the labour market data.

Question 11

How is data collected for external market benchmarking

Answer 11

Specific surveys
Market studies
- they assess how their pay rates aligns with that of other companies

Question 12

What is the benchmarking process?

Answer 12

Define objective
Select comparable Organization
Collect compensation data
Analyse and compare
Implement changes

Question 13

What is collective bargaining

Answer 13

• labour union or employee representative negotiates employment terms with employer