Are you an entrepreneur or human resources manager and want to increase the productivity and retention of your employees? Then you need to draw up a job and salary plan for your company.
with service legal advice or not, creating this plan will make it clearer for the internal and external market the guidelines of each position and also the forms of growth within the organization.
Therefore, if you want to understand more about the subject, the following text is perfect for you. Then, now check out everything you need to know about the process of a job and salary plan and its benefits.
What is a job and salary plan?
Before understanding this subject further, it is very important to understand what this plan is. Therefore, a job and salary plan is nothing more than the definition of functions, responsibilities and remuneration for each position in the company.
It is worth mentioning that it is essential that a crucial factor of a plan like this be equality, so that it is compatible with the internal and external labor market of each position. Him enables greater transparency for employees or future talents about possible growth within the company
Therefore, this plan aims to standardize internal positions and ensure salary competitiveness in relation to the market. In addition to establishing criteria for development and growth within the company.
What is the importance of the job and salary plan?
A well-designed plan is important to favor the organizational climate and the work environment. That is, when each employee knows what needs to be done by each sector, it is easier for them to interact and exchange information.
Therefore, it is very important for the increased productivity and competitiveness healthy among employees, since it makes the growth based on their own merits and work performed more tangible for them.
How to draw up a job and salary plan?
- Define roles and responsibilities
- Establish the remuneration of each role
- Develop career plans
- Create a manual of conduct
See in detail how each step works:
1- Define the roles and duties
The first step in developing a job and salary plan is to measure and list all existing positions in the company, as well as which and if new functions need to be created.
The best way to organize this study is by interviewing and talking directly with leaders and employees from all sectors of the company. This will make you understand what each position needs, both technical competence and behavioral skills.
With this study in hand, it will be easier to create the positions and responsibilities that each one of them needs for the development of the company. In addition, it is important that this information is general knowledge, so that everyone feels comfortable in applying for the vacancies that they feel most capable of.
2- Establish the remuneration of each function
For this, it is very important to carry out a foreign market studyso that their prices are proportionate to those charged by major competitors Thus, your company will become attractive to the most diverse talents in the market.
It is very important that salaries are determined within the financial reality of the company and that, if there is any benefit, it is also added to this stage of development of the job and salary plan.
3- Develop career plans
A very important step of the plan is define the criteria that will guide employee promotions This step varies according to each company, so each one can develop its own criteria, such as having a second degree or length of service provided, for example.
The most important thing about this step is that all criteria are as clear as possible, in addition to being possible to be achieved This policy will certainly encourage employees to show greater results and always seek new sources of knowledge.
It is a stage that reflects the exchange between company and employee, the support that one gives to the other, with the objective of benefiting both. That is, it is important that the company is willing to invest in courses and training for its employees, so that they always develop, improving both inside and outside the company.
4- Create a manual of conduct
To finalize the stages of the job and salary plan, everything that was developed needs to be included in a document or manual that is passed on to employees. This will make it possible for everyone to be aware of the company’s rules and guidelines.
Therefore, everyone can know what each position requires, as well as what the salaries are and what needs to be done to move up the hierarchy in the company. With this, employees can develop their own career plans and seek alternatives to grow professionally.
The main advantages of the job and salary plan
As previously mentioned, a good job and salary plan aims to establish conduct criteria and also clarify for all employees and future acquisitions the responsibilities and functions of each position.
1- Employee satisfaction
One of the main benefits is create a more harmonious work environment, where each employee feels valued and learns about the norms of conduct and organizational culture. This will certainly increase engagement during activities.
2- Decrease turnover
With more satisfied professionals and well-defined and explained growth policiesthe professional tends to want to stay longer in the companyseeking to grow gradually, reducing the turnover rate within the company.
3- Attracting new talent
A good internal policy certainly plays a fundamental role in the image that the market has of your company. Therefore, your company becomes desired by professionals of your market and new and better talents start to enter your company.
Do you feel prepared to put together your job and salary plan?
With all this said, it is clear that preparing a job and salary plan is the best way to engage and develop employees of a company, generating more productivity and healthy competitiveness.
So, if you want to stimulate your employees’ work, increase workforce retention and attract new professionals, you and your HR team need to develop a clear and coherent job and salary plan.
