Compensation Strategy Essay

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Running head: Designing Compensation Systems and Employee Benefits Designing Compensation Systems and Employee Benefits Janice R. Young Dr. Andrew McLeod Business 409 Strategic Compensation November 22, 2011 DESIGNING COMPENSATION SYSTEMS AND EMPLOYEE BENEFITS Describe the differences between job analysis and job evaluation and how these practices help establish internally consistent job structures. Job analysis and job evaluations are the fundamental cornerstones of any best practice in a human resource approach. It provides a really good understanding about the jobs in the company, how there structured, how there organized and how they are correctly and fairly graded. This is very important for the company and the employee. Job analysis is the process of obtaining valid job information that aids management in making decisions. The job analysis can be used in preparing job evaluations as well as making decisions for compensation. Human Resource professionals rely on job analysis to obtain useful information related to various types of jobs. Many factors are considered when conducting an analysis such as: Identifying the task in a particular job, examining how the task is performed, identifying the main area of responsibility and finally identifying the personal demands which a job makes on an individual. Job evaluations differ slightly in that the evaluation process identifies and measures each job against established criteria and weighs the relative value of jobs in a uniform and consistent manner (L., Berger & D., Berger,pg41).It helps to provide salary equality among all jobs in a salary structure. After a job is evaluated, it is then assigned to the appropriate salary group. Internally, identifying roles that perform similar work across all areas of the

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