HRM595_Week4_Compensation_and_Benefits_.docx HRM/595 Compensation and Benefits HRM/595

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HRM595_Week4_Compensation_and_Benefits_.docx HRM/595 Compensation and Benefits HRM/595 A good compensation plan fosters productivity and performance for organizations. It is paramount for an organ... ization to engage in compensation planning to ensure that its employees are engaged. Engaged employees reflect a motivated workforce which fosters optimum performance and productivity. Notably, the small business can employ job evaluation methods to integrate the correct compensation strategies to ensure employee engagement. The best job evaluation methods that the business should employ are classification method, point factor method and ranking method. The ranking method involves placing jobs in a hierarchy of value to the business. It is the simplest evaluation method, and its favourable for the small business which can reduce the number of positions required to be reviewed to less than 100 specific jobs. It provides an estimate of the correct job hierarchy and addresses favouritism and evaluates other subjective input. However, it does not consider market compensation rates (Suwarsono, Aisha & Nugraha, 2019). The business can also use classification method as it involves writing descriptions of every class of jobs and putting them into the grade that fits the class description. Since Classification is subjective, there are several jobs, job descriptions, and positions that fall within more than one grade level. It relies on job titles and responsibilities with the assumptions that they are similar among the business. T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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