COMPENSATION SYSTEMS AND EMPLOYEE BENEFITS

Designing Compensation Systems and Employee Benefits

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 evaluation are an essential processes in order for human resource professionals to accurately assess the substance of a specific position within an organization. Job evaluation should be completed after the job analysis. Human resources professionals will perform an assessment of the job factors to determine the scope and importance of each position.

The job analysis is the process of describing and recording the purpose of a job, its main tasks and activities, the conditions under which they are conducted and the knowledge, skills and attitudes needed to perform these jobs. The analysis of the job often leads to two main tasks: job description and specification of the requirements of the job (Paula, 2007).

Job analysis facilitates the process of recruitment and staffing. The job analysis allows the specification of profile and to identify the right characteristics of the right people for performance, focusing on the place for recruitment, as well as, to make assumptions about what qualifications of the candidate are needed. In addition, it promotes transparency in the hiring process. It guides the process of training. It is also considered as a fundamental support in the process of job evaluation and wage harmonization. The respective requirements of the positions and weighing their contributions allow the company to establish a hierarchy of salaries, so that similar positions have similar remuneration and salary packages (Wanous 2000: 439).

Similarly, it is an invaluable tool for performance evaluation. By analyzing jobs the organization can identify the behaviors and results that distinguish individuals who obtain excellent performance from those that do not achieve their targets. It must be noted that the performance evaluation does not assess the efficiency and effectiveness with which they perform the jobs (Paula, 2007). As seen above, the process of job analysis and design of these are closely related to each other; therefore, sometimes the redesign will proceed to remove the dysfunctions that have been identified in the description of job analysis.

Describe the challenges in developing compensations that are both internally consistent and market competitive.



Human resource management is considered to be an integral part of any business that helps the company to recruit and manage their highly effective people that are contributing towards the success of the company. Traditional information includes employee benefits, personnel policies, employee's daily routine, organization and operations of the company and the security measures and regulations. In most of the Ontario companies, the first part of the orientation is performed by the human resources manager, who explains things like working hours and holidays. After a presentation made to new employee's supervisor, who would continue with the guidance explaining the exact nature of the job, the person presents his new colleagues and familiarizes with the job site (Barney & Wright, 1998).

In order to emphasize the company's commitment to its new employees, most ...