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Personnel costs and job evaluation




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There are few employers who do not about the high costs in their companies, and there is no that in many countries these costs have reached a record high. The problem is not only that of the direct costs for wages and salaries, but also of the supplementary costs for such things as holidays, Christmas bonuses and employer contributions to and health insurance schemes.
As regards the direct costs, efficient job evaluation procedures are necessary for a company to develop a fair and realistic wage and salary structure. After the requirements of each job have been listed in a detailed job description, each of the requirements can be given a value and the values then added to give a total value for the job.
Although it is relatively simple to measure the work done on the , it is much more difficult to evaluate managerial and administrative work.
The payment for a job, of course, depends on other things too - on the labour supply which is available in a particular region, and on the cost of in the area where the employees are expected to work.