Authors :
Joshua Wright
Volume/Issue :
Volume 7 - 2022, Issue 6 - June
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3bZPjfH
DOI :
https://doi.org/10.5281/zenodo.6807360
Abstract :
Developing a compensation pay plan clearly
defines how to reward staff members based on their job
tasks. The more difficult the job demands the higher the
salary should be after the job would have been evaluated
accordingly. There are instituted federal laws for a
minimum wage payment plan that set the standard and
rules for equal pay, child labour, and record-keeping. To
make it easy these jobs have been categorised into exempt
and nonexempt jobs of which these standards have been
set by the Fair Labor Standard Act (FLSA) 1938.
Employees who fall under this category of exempted jobs
are executives, administrative managers, and professional
employees, and they are excluded from the minimum
wage and overtime requirements. Whereas, Employees
who are categorised into non-exempt jobs are protected
by the minimum wage and overtime provisions of the
FLSA. They must be paid a minimum wage for the entire
hours worked whilst exempted jobs are excluded.
Compensable factors and job specifications are
techniques used in pricing a job; compensable factors are
features of the job elements such as talents, knowledge,
effort, duties, and working conditions while job
specifications are the skills and knowledge an employee
should possess to perform the job. Job evaluation is a
formal and systematic comparison of jobs to determine
the worth of one job relative to another; it is used to
determine the salaries of Chief Executive Officers,
Managers, professionals, etc. There are different methods
of job evaluation such as ranking, classification, factor
comparison and point method all of the above mentioned
have similarities and differences. Broad banding saves the
time for human resource practitioners in evaluating jobs
by slitting jobs into classes or grades of which each of
these jobs has its classifiable perpendicular pay rates.
This can only be achieved when salaries are paid
according to jobs demands which are done through a
comprehensive job evaluation, market-competitive pay
plan, or both.
Developing a compensation pay plan clearly
defines how to reward staff members based on their job
tasks. The more difficult the job demands the higher the
salary should be after the job would have been evaluated
accordingly. There are instituted federal laws for a
minimum wage payment plan that set the standard and
rules for equal pay, child labour, and record-keeping. To
make it easy these jobs have been categorised into exempt
and nonexempt jobs of which these standards have been
set by the Fair Labor Standard Act (FLSA) 1938.
Employees who fall under this category of exempted jobs
are executives, administrative managers, and professional
employees, and they are excluded from the minimum
wage and overtime requirements. Whereas, Employees
who are categorised into non-exempt jobs are protected
by the minimum wage and overtime provisions of the
FLSA. They must be paid a minimum wage for the entire
hours worked whilst exempted jobs are excluded.
Compensable factors and job specifications are
techniques used in pricing a job; compensable factors are
features of the job elements such as talents, knowledge,
effort, duties, and working conditions while job
specifications are the skills and knowledge an employee
should possess to perform the job. Job evaluation is a
formal and systematic comparison of jobs to determine
the worth of one job relative to another; it is used to
determine the salaries of Chief Executive Officers,
Managers, professionals, etc. There are different methods
of job evaluation such as ranking, classification, factor
comparison and point method all of the above mentioned
have similarities and differences. Broad banding saves the
time for human resource practitioners in evaluating jobs
by slitting jobs into classes or grades of which each of
these jobs has its classifiable perpendicular pay rates.
This can only be achieved when salaries are paid
according to jobs demands which are done through a
comprehensive job evaluation, market-competitive pay
plan, or both.
