Get premium membership and access questions with answers, video lessons as well as revision papers.

What are the internal factors influencing Employee Compensation?

      

Discuss the internal factors influencing Employee Compensation.

  

Answers


Maurice
(i) Employee
Numerous employees related factors also influence his or her compensation.
They include experience, performance, superiority and potential.

(ii) Ability to pay
A firm, which is prosperous and successful, has the ability to pay more than the competitive rate.
This way it can attract a superior caliber of personnel.
Often the labour unions also demand an increase in compensation on the grounds that the organisation is prosperous and is able to pay more.

(iii) Organisation's strategy
The organisation's strategy regarding wages also influences employee compensation. For example, an organisation, which wants rapid growth, will set higher wages than competitors. On the other hand, organisations that want smooth going and just maintain the current earning will pay average or below average.

(iv) Job evaluation
Job evaluation establishes a consistent and systematic relationship among base compensation rates for all jobs. In other words, it establishes the satisfactory wage differentials.

(v) Job requirements
Wages are also influenced by the requirements of a job such as physical and mental requirement. Jobs, which demand more skill, responsibility, efforts and are of hazardous in nature, will carry high wage tag with them.
maurice.mutuku answered the question on April 15, 2019 at 11:35


Next: Give two reasons why vitreous enamel finish is used on cookers.
Previous: A plant is operating at 60% capacity. The fixed costs are Kshs. 30,000, the variable costs are Kshs. 100,000 and the sales amount to Kshs....

View More Human Resources Management Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions