Internal Reward Alignment
The extent to which an organization's Total Rewards System aligns each employee's rewards
with those received by others in the organization.
Job-based approach
to internal reward alignment assumes that organizations provide rewards based upon the job
that a person holds.
Individual-based approach
assumes that rewards should be based upon the characteristics of the person holding a job.
Performance-based approach
assumes that rewards should be based upon the performance or results produced by an
employee.
Job structure
A Job Structure is an organized listing of the business's jobs that functionally groups and
hierarchically arranges the jobs for rewards purposes.
Job-value structure
,represents the structure of jobs internally positioned according to their relative value.
Job analysis
yields a catalogue of job descriptions.
Job descriptions
that detail the work done in the organization.
Compensable Factor
Job elements or criteria that identify what the organization values for purposes of job
evaluation. Identifying compensable factors is step one in the Point factor Approach.
Benchmark Jobs
Sample of jobs that is representative of the type, content and level of jobs in the organization.
Rating scales
Tools used to measure compensable factors in step two of the Point Factor Approach. Rating
scales include Graphic Rating Scales, Anchored Rating Scales, and Variable Distance Scales.
,Anchored rating
Uses example or definitions of typical behaviors to define each point along the scale.
Scale
Uses examples or definitions of typical behaviors to define each point along the scale.
Variable Distance Scale
Uses different point distances between each level in the scale which allows an organization to
measure compensable factors in a way that takes into account the "natural breaks" in the factor
being measured.
Factor Weighting
The process of deciding how important compensable factors are to the organization. It is Step
Three in the Point Factor Approach to job evaluation.
Face validity
The extent to which the system produces relative job values that appear to be accurate and
credible. This concept is applied during Step Four of the Point Factor Approach to job
evaluation.
, Pay grades
Put jobs into categories that are treated as a group for reward purposes.
Value-Reward line
The resulting line when regression is used to estimate the line summarizing the relationship
between Job Evaluation Points and a compensation metric.
Scatterplot
A graphic tool used to display the relationship between two quantiative variables using X and Y
axis.
External Reward Positioning
refers to how an organization's Rewards compare to the Rewards offered for comparable work
in other organizations.
External Equity
External equity refers to employee perceptions regarding the worth of their work conditions and
rewards compared to the work conditions and rewards of individuals outside the company.
The extent to which an organization's Total Rewards System aligns each employee's rewards
with those received by others in the organization.
Job-based approach
to internal reward alignment assumes that organizations provide rewards based upon the job
that a person holds.
Individual-based approach
assumes that rewards should be based upon the characteristics of the person holding a job.
Performance-based approach
assumes that rewards should be based upon the performance or results produced by an
employee.
Job structure
A Job Structure is an organized listing of the business's jobs that functionally groups and
hierarchically arranges the jobs for rewards purposes.
Job-value structure
,represents the structure of jobs internally positioned according to their relative value.
Job analysis
yields a catalogue of job descriptions.
Job descriptions
that detail the work done in the organization.
Compensable Factor
Job elements or criteria that identify what the organization values for purposes of job
evaluation. Identifying compensable factors is step one in the Point factor Approach.
Benchmark Jobs
Sample of jobs that is representative of the type, content and level of jobs in the organization.
Rating scales
Tools used to measure compensable factors in step two of the Point Factor Approach. Rating
scales include Graphic Rating Scales, Anchored Rating Scales, and Variable Distance Scales.
,Anchored rating
Uses example or definitions of typical behaviors to define each point along the scale.
Scale
Uses examples or definitions of typical behaviors to define each point along the scale.
Variable Distance Scale
Uses different point distances between each level in the scale which allows an organization to
measure compensable factors in a way that takes into account the "natural breaks" in the factor
being measured.
Factor Weighting
The process of deciding how important compensable factors are to the organization. It is Step
Three in the Point Factor Approach to job evaluation.
Face validity
The extent to which the system produces relative job values that appear to be accurate and
credible. This concept is applied during Step Four of the Point Factor Approach to job
evaluation.
, Pay grades
Put jobs into categories that are treated as a group for reward purposes.
Value-Reward line
The resulting line when regression is used to estimate the line summarizing the relationship
between Job Evaluation Points and a compensation metric.
Scatterplot
A graphic tool used to display the relationship between two quantiative variables using X and Y
axis.
External Reward Positioning
refers to how an organization's Rewards compare to the Rewards offered for comparable work
in other organizations.
External Equity
External equity refers to employee perceptions regarding the worth of their work conditions and
rewards compared to the work conditions and rewards of individuals outside the company.
