A job evaluation plan can be described as a tool that helps a company to determine the internal value of a job and by so doing help in assigning an appropriate salary level. In order for this to happen, there is the use of compensable factors which are used to assess the relativity of the jobs within an organization. The point factor method which uses points to assess the compensable factors is the most commonly used approach when it comes to job evaluation. In the case of the accounting department, there are five compensable factors that will be used. They include education, supervision exercised, mental demands, experience, and finally complexity of duties. The accounting department whose primary function is to plan, oversee as well as implement accounting activities at the corporate level will need these five important compensable factors.
Experience is the accounting department is important as it reduces errors, and it determines whether a person is qualified at handling certain areas of accounting. Experience outside the organization is also highly valued. Secondly, there is education, and this shows what the job requires in terms of formal schooling, certification, training as well as knowledge in the field that is applied for. Supervision exercised includes how many people the job requires to supervise directly as well as indirectly. Further, it is important to understand that this also includes the responsibility that the holder of the position in terms of controlling works methods, decisions and costs. Complexity of duties determines the amount that the job holder is required to have in terms of showing judgment, initiative as well as whether he or she has to make independent decisions. Finally, there is mental demands, which shows what degree of concentration is required and whether there is an increase in mental activity during the job.
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For the Accounting clerk, the experience required is one year in the same position externally or internally. This is because the job is not complex and one can be able to learn it in a small amount of time. Secondly, a Bachelor’s degree in Business accounting or even any other connected area is necessary when it comes to business. The job has few essential functions and as such can be defined as being medium in terms of complexity. The mental concentration required to perform the job is minimal and this is because of the limited number of functions that the job has. Finally, in terms of supervision exercised, the number is 0 and this is because the accounting clerk does not directly or indirectly supervise any other person.
The manager in financial accounting required five years of experience. He or she has to have a Bachelor’s degree in Business Accounting or any other similar field. The manager in financial accounting supervises the accounting clerks directly. The complexity of duties can be defined as high and this is because there is an increase in the essential and secondary functions that the manager in financial accounting has to carry out. In terms of mental concentration, the scale can be defined as high as a result of increase in functions. The manager in corporate social responsibility needs to have a minimum of three years’ experience. He or she has to have a Bachelor’s degree in Business Accounting or any other related field plus a CPA. The manager does not supervise any person directly. The complexity of duties can be described as medium as the essential and secondary functions are not many. The mental concentration is high as a result of the complexity of the tasks, and therefore, this means that also in terms of the compensable factor the complexity factor is also extremely high.
The Department head in financial accounting requires at least five years of supervisory activities, and accounting experience of five years. In terms of education, the accounting head requires a Bachelor’s degree in accounting or any other connected area of study. In terms of certification, an earned CPA is required for the department head. The Department head supervises directly a multitude of people and therefore, his supervision execution is extremely high. The complexity of tasks is also high and this is because of the numerous essential and secondary functions. Finally, he or she requires a lot of mental attention in order to perform the job as a result of the many functions that he or she is required to attend to.
Weight of the compensable factors
Every compensable factor has to have points with the most important having the highest points.
Education- 20 points
Experience-30 points (every year added to experience earns an additional 5 points)
Mental demand- 30 points
Supervision exercised-50 points (every person supervised increases points by 5 points)
Complexity of tasks-50 points
Final Results
Therefore, given this aspect, it can be seen that the highest paying job is the department head in financial accounting with 20 education points, 55 experience points, 30 mental demand points, 70 supervision exercised points, and finally 50 complexity of tasks. This brings it to a total of 225 points. The manager in financial accounting comes second with 170 points. The manager of corporate social responsibility accounting comes in at 145 points and finally the accounting clerk 120 points. The complexity of tasks is given more attention in higher paying jobs such as that of the accounting head as well as managerial positions.
