Client success story – Job analysis and compensation study
A recent success story shows that conducting a job analysis and compensation study can become a powerful way to ensure that your organization is paying current and future employees correctly for the work performed and relative to the market. Our client is a community bank headquartered in Cleveland, Ohio and needed to know if they were paying competitively compared to the market from which they draw talent.
Our initial assessment of their position descriptions and compensation program uncovered these challenges:
- Outdated position descriptions that did not reflect the current jobs that employees performed within their role;
- Use of an outdated point factor system to conduct job evaluations;
- A salary grade system that had not kept pace with the market.
We worked collaboratively with their HR department to perform the job analysis on over 200 jobs to determine essential duties, necessary competencies, necessary education and experience, consistency, compliance and, relevance to the job as it exists. Customized and integrated job content questionnaires and position description templates were developed that allowed for documentation and communication of expectations for the job. Creating these tools also provided a process to analyze new jobs when headcount additions are approved.
Once the position descriptions were completed and ensured the jobs performed were accurate, we completed the benchmarking analysis of their base compensation. After careful review of the benchmarking analysis, we developed a salary grade system with variable range spreads and a salary grade range progression that made most sense for their organization, but also aligned with their organization’s total rewards strategy.
Overall, updating the position descriptions and salary grade system provided greater clarity and structure around position responsibilities and ensured all employees were compensated fairly relative to the job they performed.