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Factors in compensation

As an employee you know that pay rates are affected by many factors. For this discussion review the 13 factors listed below. Then choose only 3 of the 13 factors and discuss specific ways in which each might influence pay. (Outside sources with references can be used)

Pay factors:

1. Knowledge and skills required
2. Kind of business
3. Union-nonunion
4. Capital vs labor intensive
5. Size of business
6. Philosophy of management
7. Total compensation package
8. Geographic location
9. Supply and demand
10. Profitability of the firm
11. Employment stability
12. Gender differences
13. Employee tenure and performance

Solution Preview

Knowledge and skill
Knowledge and skill can help a person gain more money in the marketplace if they know and understand how other people with similar skill and knowledge are paid. This is also true of companies. If a company wants people with specific knowledge or a particular skill set, then knowing what other companies are paying for the same abilities is important. Companies can compete for some skill sets, no matter the economy.
When a company looks for new hires, it should have a list of necessary skills and knowledge. There should also be an idea of the value of these skills. Additional skills that will help the company add to the amount of wages the person receives. Skills and knowledge in the technology age are the most valuable commodity a person has and the valuable part of the human capital a company should consider. Paying less than the "going rate" for skills means a company is unlikely to get the best person for the position and the company.
Having skills and knowledge and being able to apply it means a ...

Solution Summary

A discussion on three of the thirteen factors presented in the assignment, and how they affect compensation.

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