Compensation and benefits

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A Job analysis is a number of activities carried out to systematically acquire, classify, and document all significant information about a certain job thus the type of personality education and experience required. A job analysis is used when writing a job description and specification. A job description is normally an outline of the way a certain job fits into the company. It shows the objectives and goals as well as the responsibilities and duties of the job in that company. A job specification describes all personal requirements expected from the employee(Brannick& Levine, 2002).

The first procedure is to write the job title and the person to be in charge of reports, then a job statement is developed describing the minor and major duties of the position as well as defining how this job relates to other positions in the company. Thus the ones that are subordinates and the ones that is of equal responsibility and authority. This will also include the job title, in which a person will report to as well as the summary of the position. Moreover it will list any educational requirements, the desired experience as well as the specialized skills/ knowledge required.

The range of salary and benefits and any listing of physical or other special requirements related with the job, as well as the occupational hazards shall be listed. Having a job description and job specifications written down helps one to determine on whether the employee needed is a par time or a full time employee, whether this person should be a permanent or temporary employee as well as if one can use a contractor to fill in the position (Brannick& Levine, 2002).

Most organizations have a compensation plan that is merely made to meet some compliance requirements while others are made to attract employees / retain them and also to motivate them towards achieving the company’s goals. An organization must determine and achieve an internal and external equity. An internal equity is determined by the maintenance of appropriate pay that is relative to the value and worth of a certain job in relation to other jobs within the organization. While an external equity is determined by the employer’s goal to pay what is necessary to attract, motivate and retain sufficient number of qualified employees. It is done by use of a base pay program that pays competitively.

This base pay program keeps an organization in compliance with various federal and state laws and regulations. A base pay program should be easy to administer, cost effective and flexible. The Pay structures are designed so that the better the worth of a job the higher the pay range and grade. For an organization to establish a pay structure, it needs to set rates of pay for the jobs within the job hierarchy. It should be done accordingly depending on the number of various levels of qualified job value that the organization recognizes as well as the difference in pay from the highest to lowest paid jobs within the pay structure (Torrington, 2009).

An organization should administer Pay Rates and Pay Increases depending on what to pay a new employee or how to pay a promoted employee. The organization should state the employee performance appraisal and rewards. The bonus structures should be consistent, fair, and understandable and communicated up front, and attached to measurable as well as achievable goals. The greater the shared picture of what an eligible bonus constitutes of by the employee and the organization the more the bonus shall result in employee motivation and success. Individual compensation is normally confidential, however the methods of determining pay and compensation should be must be precise and clearly understood (Torrington, 2009).


Brannick, & Levine, (2002). Job Analysis: Methods, Research and Applications for Human Resource Management in the New Millennium, Thousand Oaks, CA., Sage Publishers,

Torrington, D. (2009). Fundamentals of human resource management: Managing people at work. Harlow, England: Prentice Hall/Financial Times.

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