Designing Compensation Systems and Employee Benefits Assignment

Designing Compensation Systems and Employee Benefits - Assignment Example Job analysis will include determining what physical as well as mental abilities are needed to meet job responsibilities. The analysis will also include how the job will be completed and outline any equipment, material and tools necessary to complete the job. The job description will describe how the particular position fits into the company and works with other jobs in the same department and the chain of command should be well defined. The analysis will include employee policy, compensation, job hazards, expected schedule and any additional terms of employment. Job evaluation is the technique that is used to assign specific jobs to certain pay grades and levels in the company hierarchy. This technique usually ranks jobs in order of technicality or difficulty and responsibility. Job evaluation factors will include skill, effort, responsibility and working conditions (Jenns†¦). Responsibility can include factors such as decision making ability required, financial responsibility, ability to take initiative and act alone, contact with others and latitude in job performance. Effort will outline mental effort, concentration, complexity or difficulty and problem solving ability. ... The Equal Pay Act determined that jobs need to be substantially equal though not identical (The Wage†¦) and that an employer cannot change job titles in order to pay one employee less than the other. Responsibilities are to be outlined which differentiate jobs from each other. It is strictly prohibited to pay one employee less whose position requires the same responsibilities as another position when an employee has equal length of time on the job and is equal in every other aspect. The job evaluation process includes collecting factors about each job that needs evaluation, which can be completed using job analysis surveys, questionnaires, observations, interviews and job descriptions. Once this has been completed jobs are systematically rated according to the specific evaluation factors selected such as by skill, effort, responsibility or working conditions. Points can be assigned for each factor and factors can then be further divided into smaller groups. Job evaluation points can be used to visualize on a graph the relationship between the internal structure of the company and the market. The job description is the basis from which a job evaluation can be performed. External factors that are used in job evaluations include salary information that is gathered and compiled by consulting agencies whose primary function is to provide accurate information for comparison by those in human resources assigning salary and pay grades to job positions. Survey information will consider job match, the size of the company, the job industry, geography and ownership. Internal job factors which are used in job evaluation analyze job documentation to determine the scope and complexity of the position, potential impact the job has on the company and those factors already