A wage model consisted of job evaluation, employee characteristics and job performance

Abstract

Although several substantial attempts, there is still a lack of research investigating of how employee characteristics and performance are integrated into a wage structure. In this study, it is intended to develop a salary model that creates a wage level from overall score consisting of job evaluation, employee characteristics and job performance in order to ensure wage fairness and also enhance employee' satisfaction. In the first phase, a point factor job evaluation system including sixteen factors was adapted to determine the job scores of the white-collar jobs within a company. The score generates a basic payment. There will be extra pay for the staff who are well educated and experienced for the job. A method producing a score from employee characteristics in terms of "education" and "experience" factors was developed. Job performance was measured with how an employee achieves the task activities for eleven job evaluation factors. These three components were integrated to a composite score to translate a wage level. The system was implemented in a middle sized manufacturing company for white-collar jobs. The results indicated that the job point has significantly greater influence on wage level. (English) [ABSTRACT FROM AUTHOR]