Compensation Programs and Job Evaluation
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Compensation Programs and Job Evaluation

A compensation program encompasses more than just a pay schedule. Compensation includes job design components and complete benefits, such as insurance and vacation, and provides organizations with a strong competitive tool in the marketplace. No compensation program develops in a vacuum; it is vigorously worked on and must take into account the unique human resource needs of the organization, the environment in which it operates, and relevant local, regional and national legislation, as may be applicable. Compensation programs need to be reviewed on a regular basis and should also be developed so that major revisions are required only occasionally.

Job evaluation is part of the balanced compensation package. It’s a process that serves the needs of the compensation system in an organization by determining the relative value of one job in relation to another. Professionally done it helps eliminate pay inequities which may exist because of illogical pay structures, such as might develop over time when care is not taken in how compensation is determined.

People are a much undervalued resource in many organizations. They are taken for granted until problems develop. People value their jobs. They are major determinants of the amount of financial compensation and other benefits received. Organizations pay for the value perceived to attach to certain duties, responsibilities, and other job-related factors, like working conditions. The relative worth of jobs is usually determined through a combination of job analysis, job descriptions, and job evaluation. Job analysis and job description determine and express the content of a given job, while job evaluation makes use of this data to compare jobs and set compensation. When well done it serves to focus management valuing people and makes for sound human and industrial relations.

Job evaluation is used to accomplish the following tasks:

  • Identify the job structure of the organization;
  • Bring order and equity to the relationship among jobs;
  • Develop a hierarchy of job value to create a pay structure;
  • Achieve a consensus among managers and employees concerning jobs and pay.

Among the decisions to be made is whether a single or a multiple job evaluation plan will be instituted. Job evaluation plans usually vary depending on the job families, classifications or groupings, for example, clerical or professional.

Breckenhill has a special interest international development. In any environment, but especially in developing, under-developed or post-conflict countries a well-designed, appropriate process for paying and rewarding people, reflective of cultural, operational, economic and social environments will go a long way into reducing the temptation to participate in corrupt activities. The person who feels fairly treated, recognized for his contribution, receiving sufficient income to look after his various needs will normally be able to see that it is not in his or her interest to jeopardize their position situation.

Breckenhill has the experience, tested methodologies and other tools to develop balanced, merit-based comprehensive compensation programs. We cover the range of key processes from the analysis of the short and long-term strategy of the organization, its organizational and operational processes, job description and job evaluation. We create salary and benefit programs that take into account both the internal and external economic environments, performance and reward management including the review and/or development of the relevant legislative framework, policies, procedures, forms and others documentation.