SmartHCM

What are Compensable Factors?

What are compensable factors?

Compensable factors are criteria used to evaluate and determine the salary for a job within an organization. They help create a fair and equitable pay structure by assessing a job’s value compared to others.

Key compensable factors include:

  • The skill level required
  • The effort (both mental and physical) involved
  • The level of responsibility
  • The working conditions.