Western Governors University (WGU) HRM3600 C236 Compensation and Benefits Practice Exam

The process of determining the importance of compensable factors to the organization is referred to as Factor Weighting. In this context, compensable factors are the job-related characteristics that are valued by the organization and serve as criteria for establishing the worth of various positions within the hierarchy. Factor weighting involves assigning values or importance levels to these compensable factors based on the organization’s goals, industry standards, and overall compensation strategy.

This systematic approach ensures that the organization not only values the skills and responsibilities associated with different roles but also aligns its compensation structure with its strategic objectives. By prioritizing certain factors over others, an organization can develop a more equitable and effective compensation framework that reflects its values and operational needs.