Hi there, what do you mean by "compensation profession"...Are you talking about "workplace compensation"?

https://www.salary.com/articles/eight-factors-that-can-affect-your-pay/

https://hrdailyadvisor.blr.com/2010/02/24/10-critical-quot-compensable-factors-quot-in-job-descriptions/

le comparto algunas contribuciones al respecto

https://revistas.unilibre.edu.co/index.php/dictamenlibre/article/view/7296

https://revistascientificas.cuc.edu.co/economicascuc/article/view/2866

Chapter Elementos de salarios, aumentos e incentivos en las clínicas...

https://www.uniamazonia.edu.co/revistas/index.php/faccea/article/view/1799

Determining the “right” compensation can be tricky. Not only is money a touchy subject, but so many factors play into anticipated growth in determining compensation rates that are both fair and competitive in someone profession . Here, Silva in his book , discussess the factors that influence compensation rates the most:

1. Years of experience and education level

It probably goes without saying, but the more experience and education a candidate has, the higher their expected compensation. So, if you’re hoping to attract job seekers with master’s degrees or more than 5 years’ experience, you need be ready and willing to compensate accordingly.

2. Industry

Workers with similar, or even the same job title can expect vastly different wages depending on what industry they’re in. There are many reasons for this discrepancy – in some cases their job function may be critical to a particular industry, or it may simply be a matter of one industry being considerably larger than the others.

3. Location

Cost of living, a major factor to consider when determining compensation, is largely dependent on location and, more specifically, the cost of housing. This is at least partially why salaries in large urban areas are generally higher than salaries for similar positions in more rural locations.

4. In-demand skill sets

When it comes to determining compensation, key skills may be an even more reliable metric to compare against than job title. After all, different companies may have very different definitions of the same job title. On top of that, many skill sets can apply to a wide variety of roles – all of which are effectively competing for the same talent. That’s why it’s important for employers to consider the value of key skills when determining compensation.

5. Supply and demand

It’s crucial to be aware of the availability of relevant talent in the geographic region where you’re recruiting. If you’re recruiting in an area where the demand for a certain skill sets and experience outweighs the supply, you should expect to pay more in order to attract talent.

The cost of not offering competitive pay

You may think you’re saving money by keeping compensation rates low; however, it’s important to consider what it’s costing you in other areas. For instance, many employers overlook the costs associated with having unfilled positions for extended periods of time. Similarly, keep in mind the burden an unfilled position can put on your current employees, who may be taking on extra work to fill the gaps – not to mention what that can do to morale.

What happens if you can’t pay market value?

Luckily, it is possible to attract top talent even if you can’t offer the most competitive salary. Supplementing your compensation package with low- or no-cost perks, such as development opportunities, more vacation time and flexible hours can go a long way in retaining your current workforce. Another option is to recruit from areas where compensation rates are lower, and let employees work remotely from home or from another office closer to where the employee lives.

The issue of compensation is indeed a crucial concern being an interplay of so many factors enumerated by Lawrence Omotoso ; however I would like to mention some additional concerns arising out of increasing globalization of the businesses which in turn implies meeting the expectations / needs of the multi-origins workforce. The different nationalities of the employees working in different locations adds further complexity in devising a compensation plan suited to multi-national workforce. The constant monitoring of cost of living in different countries, their salary packages as well as their taxation laws are the examples of such complexity and are absolutely necessary to ensure the internal/ external equity. This complexity may in turn contribute to the specialization as well as the growth in this profession.