There is a salary range for various "job titles w/descriptions/qualifications" in every industry area which is usually a boiler plate for compensation. Based on these salary ranges, employers will negotiate a compensation package within that range or sometimes higher to recruit and retain the best talent for all positions. In looking for a proper "fit" employers base their selection on attitude, experience, knowledge & the willingness to learn.

There are various factors that determine salary. Certainly, circumstances differ and company culture differs.
However, I feel that in today's corrupt, self-serving and political corporate culture; compensation and reward is due mostly to "who you know" and whether or not you are one of the boss' cronies.

Results, ROI, Performance - whatever you want to call it. New hire or veteren - it's the one with a proven track record that should get the greatest compensation.

The most important factors should be validation of the credentials of work experience and education. Then you evaluate the work experience that relates to your business, special projects, presentation skills, computer skills, etc, and match that to the performance ojectives. This would be to determine base salary. Most positions I've worked with have not been bonused, but if bonus criteria can be determined objectively, based on professional demonstrated behaviors, then providing the employee w/periodic bonuses offers staff reward and recognition .....combined w/public recognition for their accomplishments. Market evaluations should be done periodically to identify changes that may negatively impact recruitment.

An employee's compensation should directly correlate to how much they increase the profitability of the company. Companies are in business to make a profit. Those employees who have the talent to increase the company's profit should be compensated appropriately. It's about talent and what they bring to the game.

The single most important factor in compensation is relevant job experience. Education is important, but someone with a degree and no relevant work experience, should not recieve as high a pay scale as someone who was working in their chosen field while getting their education, even if it was an internship. Attitude, drive, flexibility, vision, achievable goals all should be considered at the time of performance evaluation or promotion time.

I think the most important factor in determining compensation is what the employee can contribute to the overall success of the organization (and I don't mean just financial success). Their value is determined by many things such as experience, education, drive, influence, people and technical skills...in short, the combination of what that person brings to the table. Getting the right person who has the right ingredients in the right job makes all the difference in the world in how successful they, their area and the company will be.

Compensation should be based on a few key factors:

1-Relevant experience. If a candidate is not qualified to adequately address the key points of a position, compensation should follow suit. This cannot be determined solely by a resume or an interview. It HAS to be demonstrated. Some of the dumbest people I've interviewed and hired have had a degree in the field of our opening.

2-Drive/Determination. If a candidate is lacking in #1 but has drive and determination to gain said experience it should count for future consideration. I currently have an employee who had a little experience and barely qualified for the job. Over the last year she has developed into my most flexible, dependable and intelligent employee. Looking solely at her resume and basing her eligibility from that alone would have excluded her from consideration.

3-Level of demand for skills possessed by the candidate. If skills are in high demand-the company would be smart to consider that as a key factor. Also, how able is a candidate/employee able to adapt to new technology/tasks?

4-Flexibility/Adaptability. I think this is highly undervalued by most employers. They simply fit someone into a job title and let them go at it. People who fulfill the basic requirements are compensated the same as people who jump in, take notes, execute actions above and beyond the 'normal' expectations.

5-Vision/Goals. I tend to hire people who tell me that they ultimately want my job. I want people who have goals to achieve more than where they start.

When determining salary there are 5 things that need to be considered; experience, education, local market data, internal equity, and ability/performance. The first 4 should be used when defining a new salary range or hiring. The 5th component needs to be taken into account when it comes time for reviews and raises. Of course, this is in a perfect world. Today, no matter what the data says, budget will prevail as the final determining factor.

When determining compensation for a new hire - experience, drive, passion, and aptitude play a role in compensation. If I can tell the new hire is applying or interviewing because they are just looking for a paycheck, I will not compensate them at the same rate initially as someone who is coming to the position with the same experience but is thirsty to grow.
When determining compensation for current EE - job performance, absolutely. You shouldn't be rewarded with a pay increase just because you have been with a company 1 year, etc. It needs to be earned and deserved by job competence, performance, reliability, dependability, and attitude.

I think the single most important factor is making sure that the wage scale you set accuratly reflects the jobs duties. That way the person in that jobs feels they are paid for the job they do and the company knows that the wage is competitive within the job market.

There is a salary range for various "job titles w/descriptions/qualifications" in every industry area which is usually a boiler plate for compensation. Based on these salary ranges, employers will negotiate a compensation package within that range or sometimes higher to recruit and retain the best talent for all positions. In looking for a proper "fit" employers base their selection on attitude, experience, knowledge & the willingness to learn.

The most important factor in determining compensation should be talent. Is it? That is determined by the ability of the corporation to define, identify and appreciate talent. Of all the talents, the one that should be most precious to a company is the "change architect", an individual who is able to (1) conceive of forward-thinking creative solutions, and (2) lead and influence company leaders to invest in such solutions. In that respect talent is not related to position of power, but the ability to problem-solve and execute sustainable, long-term, value-creating growth.

Comensation is how hard you work, ethics, honesty, pride, awarness, smarts.
These will all help you to go far in life!

I believe the experience and ROI are the most important factors in determining compensation.

Sounds like Bill is the only person with some real world experience!

There are various factors that determine salary. Certainly, circumstances differ and company culture differs.
However, I feel that in today's corrupt, self-serving and political corporate culture; compensation and reward is due mostly to "who you know" and whether or not you are one of the boss' cronies.

Willingness and ability to take resposibility for one's work.

Relevant experience is a key factor. Don't make the mistake of paying for potential until it beoomes a reality.

A person's earnings at his/her most recent employer.

I believe experience and tenure for previous employment should be important. Also I believe how this individual fits the mission statement of the employer

“What do you think is the most important factor in determining compensation?”

When placing a new hire in a position, the most important factor to get the compensation ball rolling is direct related experience to the position applied for. In other words how much experience has an applicant had in the field and in a similar company. While it is not the only contributing factor, it is what starts the discussions off.

The single most important factor is how does the individual's work contributes to the company's goals.

Results, ROI, Performance - whatever you want to call it. New hire or veteren - it's the one with a proven track record that should get the greatest compensation.

The most important factors should be validation of the credentials of work experience and education. Then you evaluate the work experience that relates to your business, special projects, presentation skills, computer skills, etc, and match that to the performance ojectives. This would be to determine base salary. Most positions I've worked with have not been bonused, but if bonus criteria can be determined objectively, based on professional demonstrated behaviors, then providing the employee w/periodic bonuses offers staff reward and recognition .....combined w/public recognition for their accomplishments. Market evaluations should be done periodically to identify changes that may negatively impact recruitment.

An employee's compensation should directly correlate to how much they increase the profitability of the company. Companies are in business to make a profit. Those employees who have the talent to increase the company's profit should be compensated appropriately. It's about talent and what they bring to the game.

The single most important factor in compensation is relevant job experience. Education is important, but someone with a degree and no relevant work experience, should not recieve as high a pay scale as someone who was working in their chosen field while getting their education, even if it was an internship. Attitude, drive, flexibility, vision, achievable goals all should be considered at the time of performance evaluation or promotion time.

The return on investment to the company.

There are quite a few factors which should be considered when determining compensation, such as education, experience and benefit to the company (especially in sales roles). I think the biggest question to ask though is: Is it fair? Regardless of all other factors, if both the employer and the employee feel that the wage is fair, then it is an acceptable wage.

I think the most important factor in determining compensation is what the employee can contribute to the overall success of the organization (and I don't mean just financial success). Their value is determined by many things such as experience, education, drive, influence, people and technical skills...in short, the combination of what that person brings to the table. Getting the right person who has the right ingredients in the right job makes all the difference in the world in how successful they, their area and the company will be.

Compensation should be based on a few key factors:

1-Relevant experience. If a candidate is not qualified to adequately address the key points of a position, compensation should follow suit. This cannot be determined solely by a resume or an interview. It HAS to be demonstrated. Some of the dumbest people I've interviewed and hired have had a degree in the field of our opening.

2-Drive/Determination. If a candidate is lacking in #1 but has drive and determination to gain said experience it should count for future consideration. I currently have an employee who had a little experience and barely qualified for the job. Over the last year she has developed into my most flexible, dependable and intelligent employee. Looking solely at her resume and basing her eligibility from that alone would have excluded her from consideration.

3-Level of demand for skills possessed by the candidate. If skills are in high demand-the company would be smart to consider that as a key factor. Also, how able is a candidate/employee able to adapt to new technology/tasks?

4-Flexibility/Adaptability. I think this is highly undervalued by most employers. They simply fit someone into a job title and let them go at it. People who fulfill the basic requirements are compensated the same as people who jump in, take notes, execute actions above and beyond the 'normal' expectations.

5-Vision/Goals. I tend to hire people who tell me that they ultimately want my job. I want people who have goals to achieve more than where they start.

When determining salary there are 5 things that need to be considered; experience, education, local market data, internal equity, and ability/performance. The first 4 should be used when defining a new salary range or hiring. The 5th component needs to be taken into account when it comes time for reviews and raises. Of course, this is in a perfect world. Today, no matter what the data says, budget will prevail as the final determining factor.

When determining compensation for a new hire - experience, drive, passion, and aptitude play a role in compensation. If I can tell the new hire is applying or interviewing because they are just looking for a paycheck, I will not compensate them at the same rate initially as someone who is coming to the position with the same experience but is thirsty to grow.
When determining compensation for current EE - job performance, absolutely. You shouldn't be rewarded with a pay increase just because you have been with a company 1 year, etc. It needs to be earned and deserved by job competence, performance, reliability, dependability, and attitude.

I think the single most important factor is making sure that the wage scale you set accuratly reflects the jobs duties. That way the person in that jobs feels they are paid for the job they do and the company knows that the wage is competitive within the job market.

In determining salary, Human resources will be to consider a persons education, work experience, education and the geographic location of the position. A like position should not pay the same in NYC as it will in rural Nebraska since the cost of living are no where even close to the same. HR departments must know what their competition is offering for like positions "down the street" to be competitive and attract the best person for their company. A company that offers excellent benefits needs also to promote this to the candidates.

The most important factor is the value the employee brings to the company. It's not an exact science because there are multiple things to consider but at the end of the day you don't want to be paid more than the value you are giving to your company or else it will be a short-lived situation.

I see experience along with certification/education as the biggest factors, but someone showing initiative and doing work beyond their job duties to better the company is deserving of a raise or promotion.

I believe work experience is the most important factor in determining compensation. Likewise, job performance should be the #1 determiner for raises and promotions.