ECO244Y5 Lecture 2: Week 21
Document Summary
Four basic considerations influence the formulation of any pay plans: legal requirements, union issues, compensation policy, and equity. overtime pay policy: compensation policies are usually written by the hr in conjunction with senior management. Policies regarding probationary pay and leaves for military services, jury duty, and holiday. The process of establishing pay rates that are both externally and internally equitable requires three stages: Stage 1: job evaluation: job evaluation is aimed at determining a job"s relative worth. It is a formal and systematic comparison of jobs within a firm to determine the worth of one job relative to another, and it eventually result in a job hierarchy (a job ranking scheme. ) the basic procedures is to compare the content of jobs in relation to one another. Such as their effort, responsibility, skills, and working conditions. Job evaluation usually focus on benchmark jobs that are critical to the firm"s operations, or commonly found in other organizations: compensable factors:
