Compensable Factors

Compensable factors are specific qualities or aspects of a job that are used to determine its value or worth for salary and benefits purposes. These factors can include skills required, responsibilities, effort needed, working conditions, and the level of decision-making. By evaluating these factors, organizations can establish fair and consistent pay rates across different jobs. Essentially, compensable factors help ensure compensation reflects the demands and importance of each role, creating a structured approach to pay determination that promotes fairness and internal equity.