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Compensation and Benefits: HRMT415-Job Analysis and Compensation

Compensation and Benefits: HRMT415-Job Analysis and Compensation

Job Analysis and Compensation

In the corporate world, an employer must begin to evaluate from inception of the corporation, to reviewing on a regular basis (whether annually, or semi-annually) the needs of the organization and it’s roles within. Referred to most often as Job Descriptions or Position Descriptions, these documents must clearly define the role to be done, and match the organizational needs and goals. To ensure this is done properly, there are clearly defined steps that allow an employer to move from Job Analysts, to Job Description that will allow a fair and equitable wage to be set to compensate an individual for the role in question.

Beginning with the Job Analysis, this should be set by role and not by the individual – as the individual doing the role will change as the year’s progress on. When studying the M. U. S. E. modules, it was clearly identified that a job analysis “is a process used to gather information about a job” (MUSE, N.D.) There are several ways to conduct a job analysis effectively that will allow for accurate data collection, but the most popular and effective has proven to be the interview technique – where you interview managers and employees in the role currently to understand the Knowledge, Skills, and Abilities needed to do the job. (SHRM, N.D.) Once the data has been obtained, compiled and analyzed, comparing the role to other similar jobs in the area is paramount to establish pay equity.

The second step in the process is developing the Job Description, which takes the Minimum Qualification Requirements needed, and the Knowledge Skills and Abilities that you have researched for the role, and combines them to form a single Job Description that an individual can apply for – and know exactly what they will be doing.

Finally, the Job Analysis and Job Description build into setting compensation for the role – which is done by analyzing the compensation in the area for a role similar, looking at equity within your organization, and common pay standards for the level or grade of work being done. A wage is then set based on Knowledge, Skills, and Abilities – often as a range, to establish equity (SHRM, N.D.) for those who have been doing the job a long time coming in at the middle or top of the range with their established experience, or the entry level compensation marker for those who have little to no experience.

Areas of Responsibility in the Process

From Job Analysis, Job Description, Establishing Compensation to Recruitment, Human Resources will have the biggest hand in the establishment and management of the role within the organization. (SHRM, N.D.) Though each piece may be carried out by different Subject Matter Experts within Human Resources (such as that of establishing compensation being handled by a Compensation Specialist or the Job Description creation being handled by a Human Resources Generalist or Specialist). It is important to have checks and balances within the department to clearly identify, address and resolve any issues that may arise with the establishment of the role, the equity in the organization, and the compensation paid. Finally, the Recruiting Department or Talent Acquisition will have the biggest hand in finding the talent to do the role – and a hiring manager will help narrow down who to bring in, and who passes through the interview process. Though there are many hands in the process, ultimately, this aids in the checks and balances and ensures a fair, equitable and transparent working environment – from orientation to the exit interview.


M.U.S.E. (n.d.). Job Descriptions & Evaluations. Retrieved March 08, 2022, from

Society for Human Resource Management (2022) “How to Develop a Job Description” (n.d.). Performing Job Analysis. Retrieved from (n.d) How to Develop a Job Description

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