Dear all,
Could you please help me out regarding this query: why is a job description important in designing a good compensation plan? If somebody can send me a relevant article or some sort of data, please send it to: simplethebest2008@gmail.com
Regards,
Shahid
From Pakistan, Lahore
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1Could you please help me out regarding this query: why is a job description important in designing a good compensation plan? If somebody can send me a relevant article or some sort of data, please send it to: simplethebest2008@gmail.com
Regards,
Shahid
From Pakistan, Lahore
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Greetings,
The job description explains every task and responsibility an individual needs to undertake. Each component is evaluated in terms of monetary value, aligning with market standards. Subsequently, it is matched to the required skills and education to fulfill the role. An Expected Monetary Value is then calculated, necessitating the alignment of the employee's service with the employer's offering, i.e., matching delivery requirements with compensation.
Suppose you are hiring an HR Executive. This role encompasses generalist responsibilities along with the added requirement of proficiency in SAP. Ideally, you would outline the tasks and structure them into a job description format. Each task would be matched with the necessary level of education and experience required for its execution. Assigning a monetary value to each task, a Cost to Company (CTC) calculation is performed, aligning it with market standards. Additionally, considering the need for an extra skill set, not universally present, the determination of final compensation relies on factors such as training costs and the level of SAP PA tasks the talent must handle.
Various techniques are involved in designing compensation plans. You may find it beneficial to review a few of the following documents:
- [Basis of compensation management](https://www.citehr.com/125714-basics-compensation-management.html#post527791)
- [Compensation guidelines](https://www.citehr.com/95515-payroll-2.html#post382927)
Please feel free to share any queries.
Regards,
(Cite Contribution)
From India, Mumbai
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The job description explains every task and responsibility an individual needs to undertake. Each component is evaluated in terms of monetary value, aligning with market standards. Subsequently, it is matched to the required skills and education to fulfill the role. An Expected Monetary Value is then calculated, necessitating the alignment of the employee's service with the employer's offering, i.e., matching delivery requirements with compensation.
Suppose you are hiring an HR Executive. This role encompasses generalist responsibilities along with the added requirement of proficiency in SAP. Ideally, you would outline the tasks and structure them into a job description format. Each task would be matched with the necessary level of education and experience required for its execution. Assigning a monetary value to each task, a Cost to Company (CTC) calculation is performed, aligning it with market standards. Additionally, considering the need for an extra skill set, not universally present, the determination of final compensation relies on factors such as training costs and the level of SAP PA tasks the talent must handle.
Various techniques are involved in designing compensation plans. You may find it beneficial to review a few of the following documents:
- [Basis of compensation management](https://www.citehr.com/125714-basics-compensation-management.html#post527791)
- [Compensation guidelines](https://www.citehr.com/95515-payroll-2.html#post382927)
Please feel free to share any queries.
Regards,
(Cite Contribution)
From India, Mumbai
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Hi!
It seems that some of our moderators are trying to appear knowledgeable by immediately commenting on queries. Unfortunately, some of them have a shallow or even ignorant understanding of the subject matter.
The response to this question by one of our "super moderators" exemplifies my statement above.
The Job Description (JD) of a certain "role/function/job" in a company has no direct correlation with the company's compensation plan. A compensation plan is formulated using the FOUR (4) basic compensation principles: internal equity, external competitiveness, affordability, and sustainability. These elements, along with market surveys, are the sole factors utilized in designing a company's "salary structure."
The JD, especially a comprehensive one with content, context, and requirements, is crucial for aligning the job in the correct "job grade" within the established salary structure or compensation plan. This is because the JD provides management with insights into the actual "size" of the job relative to others. When a JD or job is assessed using a specific methodology (e.g., Hay), the JD becomes essential for the evaluator to determine the appropriate Hay points rating score per compensable factor. The cumulative score obtained by the job will determine its placement in a particular job grade within the company's structure/compensation plan.
I hope this explanation clarifies the matter.
Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
Tel: 00966-54-223-7804 (KSA CP)
From Philippines, Parañaque
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It seems that some of our moderators are trying to appear knowledgeable by immediately commenting on queries. Unfortunately, some of them have a shallow or even ignorant understanding of the subject matter.
The response to this question by one of our "super moderators" exemplifies my statement above.
The Job Description (JD) of a certain "role/function/job" in a company has no direct correlation with the company's compensation plan. A compensation plan is formulated using the FOUR (4) basic compensation principles: internal equity, external competitiveness, affordability, and sustainability. These elements, along with market surveys, are the sole factors utilized in designing a company's "salary structure."
The JD, especially a comprehensive one with content, context, and requirements, is crucial for aligning the job in the correct "job grade" within the established salary structure or compensation plan. This is because the JD provides management with insights into the actual "size" of the job relative to others. When a JD or job is assessed using a specific methodology (e.g., Hay), the JD becomes essential for the evaluator to determine the appropriate Hay points rating score per compensable factor. The cumulative score obtained by the job will determine its placement in a particular job grade within the company's structure/compensation plan.
I hope this explanation clarifies the matter.
Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
Tel: 00966-54-223-7804 (KSA CP)
From Philippines, Parañaque
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Dear fellow members,
With my raw HR knowledge, my understanding is that a job description (JD) is a crucial tool to develop Key Performance Indicators (KPI) for each individual, which can be measured and given weight, thus using it in the performance evaluation for employee achievements/deliverables. When designed properly, it can be used as a tool to determine compensations, promotions, and increments.
From Oman, Muscat
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With my raw HR knowledge, my understanding is that a job description (JD) is a crucial tool to develop Key Performance Indicators (KPI) for each individual, which can be measured and given weight, thus using it in the performance evaluation for employee achievements/deliverables. When designed properly, it can be used as a tool to determine compensations, promotions, and increments.
From Oman, Muscat
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Dear All,
The job description and overall responsibilities within the firm reflect a person's financial standing in the market. Therefore, crafting accurate job descriptions is crucial in attracting the right individual with an effective compensation package.
Email: nejati80@yahoo.com or Ahmadshah.Nejati@wfp.org
Thank you.
From Singapore, Singapore
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The job description and overall responsibilities within the firm reflect a person's financial standing in the market. Therefore, crafting accurate job descriptions is crucial in attracting the right individual with an effective compensation package.
Email: nejati80@yahoo.com or Ahmadshah.Nejati@wfp.org
Thank you.
From Singapore, Singapore
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