Page 79 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Library Administration and Management

Notes 4.5 Compensable Factors

Point factors are also called “compensable factors.” A compensable factor is any particular skill,
responsibility, effort or physical demand for which an employer is willing to pay an employee.
Typically an employer’s compensable factors encompass four major categories:
1. Skill

Experience
Education/Training
Ability
2. Responsibility

Supervisory
Fiscal
3. Effort

Mental
Physical

4. Working conditions
Location
Hazards

Physical demands
Extremes in environment

Thus point factor systems are typically attuned to an employer’s vision, mission and culture;
and a library/employer must first know what they want to pay for in the work they will ask
their employees to perform, or what attributes they value most, so that they can set their
compensation rates. Sounds simple, but it can get complex.

Example: In any point factor system, knowledge/education is usually a heavily weighted
factor. To those who employ workers in higher education services, education or training would
naturally be an important attribute to reward in a compensation system.

4.5.1 Other Compensable Factors

Compensation and promotion decisions can place pressure on managers, who try to ensure the
equitable distribution of salary raises according to a number of factors. Basing your compensation
decisions on a solid, well-communicated set of factors can help to alleviate feelings of unfairness
or misgivings about the decision process in your staff, and can help employees to direct their
energies toward activities that will enhance their career.

Extraordinary Service

A few employees in nearly every workplace truly stand out from their peers in their productivity
and work ethic. These are the people who quickly master their normal duties and find themselves
helping others or asking for more responsibilities. Acknowledging and compensating highly

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