Job Documentation: The beginning of your compensation systems

by on June 25, 2009 · 0 Comment POSTED IN: HR Info Center

Compensation systems need to compare internal and external circumstances

Start managing your compensation systems with job documentation for every single job in an organization. This can be in the form on a job description that’s up-to-date or it can be in a form of what I call a job inventory form or JIF. That’s very similar to a job description but tends to be written on an employee-by-employee basis as opposed to – on a job by job basis.

If we have three accountants, each accountant would write a JIF or a job inventory form. Those three accountants would have one job description describing the job. The advantage of using a job inventory form is then it can help us in human resources. It can help us to consolidate jobs, to confirm – yes, those three people that we call accountants are all doing pretty much the same thing.

Or it can help us to split them out and say, “Well, I recognize that we have three people that we’re calling accountants. But really, we have a controller here, we have an accountant and we have a bookkeeper.” What they are doing is three totally different things so we’re going to call them three different things based on each employee’s response to the job inventory form.

Job description methodology in compensation systems
Either way is an appropriate methodology to use when designing compensation systems. We need to rely on that job documentation to ensure that we have appropriate market matches.

Relying on job title alone can yield some very inaccurate results. What one organization calls a controller, another may call an accountant, another may call a bookkeeper. And so we can end up with kind of apples to oranges comparison. By relying on the job documentation, by understanding the duties and responsibilities of the job, that’s how we can then go to the market and compare those duties and responsibilities to the duties and responsibilities in the market to ensure that we have the appropriate match.

From the Rapid Learning Institute webinar: “How to Set Pay Ranges That Are Fair and Effective” by Ed Rataj

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