When determining compensation, how is the relative worth of a job determined?
A) the employee's relative worth
B) area wage rates
C) job evaluation
D) labour market conditions

Question

Quizplus · Accepted Answer

The relative worth of a job is determined through job evaluation, which involves analyzing and comparing job duties, responsibilities, and requirements to determine its relative worth within the organization. This process is typically conducted by a professional job evaluator who assigns a point value to various job factors to determine the job's overall value or worth. Area wage rates and labor market conditions may be taken into consideration during the compensation process, but they do not directly determine the relative worth of the job. Ultimately, the job evaluation process helps ensure that employees are being compensated fairly and equitably for the work they perform.

When Determining Compensation, How Is the Relative Worth of a Job