Job valuation and variable compensation scheme | Human Soul

7 July 2020

Remuneration has a great influence on various factors of the organization. It directly influences organizational behavior, it is a managerial tool used as positive or negative motivation for its staff, it constitutes one of the highest costs in the operation of an institution, it generates conflicts when it is not established through a fair and equitable process.

The remuneration in an organization has an influence of a systemic nature, which means that as an interconnected gear with different processes in it, any modification or movement that this “gear” performs, will definitely have an impact on a large part of the company.

In order to determine the salary remuneration in a company, internal and external factors that determine wages must be considered, such as the labor market, the influence of the state, organizations, personal supplements, job positions, by quality or quantity.

Job competencies are those that predict potential performance and take place in positions carried out by flexible, multi-skilled workers. Negotiating wages in this situation should focus on changing work attitudes and culture, in order to increase productivity and reduce costs.

The most dynamic companies add factors such as product quality and process in their remuneration. They stimulate the suggestions made by the workers, focus on the group and give more training to their workers. These types of companies have concluded that the remuneration system is a constantly changing process.

In high-command positions, there is sometimes the opportunity to build an a la carte remuneration, which allows the employee to choose those benefits that represent the greatest economic value to their personal situation (Porret Gelabert, 2010).

Job valuation is the method by which the remuneration to be paid for a job performed is determined. It is the technique to analyze the position in order to determine its importance in relation to others, considering the degree of skill, effort and responsibility required in it as well as the working conditions in which it is performed (Arias Galicia & Heredia Espinosa , 2003).

Strategic planning, job valuation, performance evaluation, compensation scheme, work benchmark, compensation on demand, systemic approach and others related, are concepts of a professional human resources administration that at Cori Consultores we master and implement for you.

Author: Lic. Montserrate Muñoz González


CORI Tax & Legal

Human Soul is part of the Cori Tax & Legal corporate, dedicated to accounting management, payroll systems and human capital management.
Av. Manuel Nieto 571
Manuel Nieto, CP. 94296
Boca del Río, Veracruz
Follow UsSocial Network
Follow our networks and stay aware of everything about managing human capital.