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How these practices help establish internally consistent job structures are the descriptive

job analysis results directly aid compensation professionals in their pay-setting decisions by

differences between job content and worker requirements. Job content refers to the actual job

duties and task that employees must perform on the job. Worker requirements are the minimum

qualifications and skills that people must have to perform a particular job. Job evaluation partly

reflects the values and priorities that management places on various positions. Some

compensable factors how companies distinguish themselves is through skill, effort,

responsibility, and working conditions are some of the compensable factors that companies take

into consideration.

Describe the challenges in developing compensations that are both internally consistent and

market competitive.

Internally consistent compensation systems are what allow a company to develop relative

pay scales. A relative pay scale means that jobs within the company pay different rates in

comparison to other jobs within the same company. The means by which these internally

consistent compensation systems are developed are rooted in simple principles and requisites.

Jobs that require a person to possess a higher level of education, experience, or skill will be

assigned a higher wage than jobs requiring less of these requirements. Other factors affecting the

relative pay of a job within the company include job complexity and the level of responsibility.

These different job characteristics are formally recognized within the internally consistent

compensation structure, and allow compensation managers to establish a pay scale that fairly

reflects these characteristics.


Despite their usefulness within an organization,
internally consistent compensation systems can
create a challenge in

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