An internally consistent compensation system is no longer just necessary for a large employer as it has now become fundamental for the very success of corporations. In this day and age of class action lawsuits, many would have been successful companies have been brought down by employee claims (Calvasina et al, 2015). This is over and above liability under the various government regulation geared towards ensuring wage-fairness in America. Among the common ones include Title VII of the Civil Rights Act of 1964, the Lilly Ledbetter Fair Pay Act of 2009 and the Equal Employment Opportunity Commission (EEOC) guidelines (Martocchio, 2017). On a more positive perspective, a comprehensive internally consistent compensation system ensures that an employer always gets value for wages paid. This is achieved by ensuring that employees are not only properly compensated for their qualifications but also their contributions to the company. Finally, when members of staff are not only well paid but also equitably paid, they are well motivated (Calvasina et al, 2015). Squabbles based on unequal pay is also avoided.
The creation of a comprehensive and equitable payment system must be undertaken professionally and in a systematic manner when a large number of staff members is involved. This is because even a small error in the process can be extremely wasteful for the company in the long run and also open the company to civil and industrial liabilities. This makes it worth the while to have a competent and qualified team handling the process. Generally, arriving at his equitable pay requires two major processes. The first is job analysis with the second being job evaluation (Martocchio, 2017). Job analysis is the collection and interpretation of data relating to the duties, requirements, and importance of a particular job. Among the pivotal aspects of the job analysis is the job description which combines the knowledge, skills, and abilities for the job (KSAs) as well as the obligations kindred to it (Morgeson et al, 2016). To enable the understanding of job analysis in general and particularly job description, an individual needs comprehensive training in human resource management. Over and above this is the need for specialized training on the work modalities of the particular company. This will, therefore, call for the selection of a competent team to carry out the job analysis. This team will then undergo a specialized training based on the jobs that the company intends to employ in and the obligations to be carried out therein (Morgeson et al, 2016). The specialized training will enable the experts to come up with the necessary qualifications to fill those posts. Finally, the general and relative importance of each job group will be established. This is an important determinant for the equitable wage categorization.
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The second aspect thereof is job evaluation. Job evaluation categorizes jobs in their order of importance based on the value and/or worth one job as compared to all the other. This can only be done once all the jobs have been properly analyzed. There are two major approaches towards job evaluation (Martocchio, 2017). The first is the more standardized market-based evaluation that uses data not only from the organization but also for similar jobs within the same or congruent localities. The second is the job content evaluation which is specific to the internal dynamics of a particular organization. Determination between the two approaches depends on the nature of the job being evaluated. Once again, a competent team is necessary to carry out the job evaluation. This team will then require specialized training premised specifically on the particular organization being evaluated. The next step is the carrying out of the evaluation itself. In the interest of fairness and equity, a secondary part of job evaluation is the establishment of an appellate mechanism to handle complaints (Martocchio, 2017). It is based on the combination of the results from the job analysis and job evaluation that the internally consistent compensation system will be generated.
References
Calvasina, G., Calvasina, R., & Calvasina, E. (2015). Responding to allegations of systemic discrimination: Policy and practice issues for employers. Journal of Management Policy and Practice , 16 (4), 57-63
Martocchio, J. J. (2017). Strategic Compensation : A human resource management approach (9th Ed.). Hoboken, NJ: Pearson
Morgeson, F. P., Spitzmuller, M., Garza, A. S., & Campion, M. A. (2016). Pay attention. The liabilities of respondent experience and carelessness when making job analysis judgments. Journal of Management , 42 (7), 1904-1933
