Job Descriptions–Cornerstone to Great Compensation Planning

Position profiles, job descriptions, or virtually any document which describes the role and expectations of an employee lag the reality of what’s currently being done by the employee. In the past couple years, employees’ roles have been adjusted, realigned, or expanded as staff was eliminated and duties reassigned.  Limited budgets and time constraints put document revisions on the back burners for both managers and Human Resources.  However, without clarity about the employee’s role and today’s priorities, performance may not meet the manager’s expectations or the company’s needs.  Additionally, incentives and pay for performance programs may not effectively reward the right results.

Job descriptions can be as formal or informal as a company likes.  In any case, a clear mutual understanding of what’s needed for the employee to succeed is imperative to ensure strong, desired performance.  It is also essential the appropriate position is bench marked to relevant market data and performance is competitively and fairly compensated.

Current accurate job descriptions are the cornerstone to building a strong high performing organization, ensure competitive total cash compensation, and effective variable pay and incentive pay programs.

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One Response to Job Descriptions–Cornerstone to Great Compensation Planning

  1. Very timely message, Cherryll, and well broken out into just 3 things!

    The first point is also VERY important for Workers’ Compensation classifications – there are audits at any time and “revised” jobs that are still shown as “clerical” (the least expensive category!), for example, can bring fines and penalties.

    From experience, the third is perhaps the hardest and not often done right. A client recently tried to include safety results in bonus calculations and we had to have a conversation about the law of unintended consequences. Non-reporting of what might seem like minor injuries is already a problem – with the “wrong” incentives, it could become rampant and dangerous.