Set Motamedi
February 23, 2023
Job classification can be a powerful standardization tool, allowing you to
cover every area of need in your business more effectively than manual audits
can. Understanding how to leverage this in your business offers you the
opportunity to foster improvement, general efficiency, and a greater degree of
organization that every team member can benefit from.
Below, we’re exploring what job classification is, how it works, a sample
system, and a pro/con analysis of using this tool in your business.
What is job classification?
Job classification determines where a set of jobs falls on a hierarchy,
defining and assigning a “rank” for every role. This process keeps
requirements specific to a certain level of role, ensuring a more equitable
experience for both employer and prospective team member.
Job level classification can also help to assign certain echelons of pay and
rate, which can save HR team members time on the back end for job description
creation and management.
How does job classification work?
The process of job classification can be done with any HR professional in your
company. The human resources specialist can complete a comprehensive
evaluation of a role’s scope and duties, summarizing it effectively for
stakeholder approval. At this point, there may be a group discussion to
determine which echelon of compensation a certain job fits into until an
agreement is reached.
After this determination is made, HR can then create the job description and
path to advancement that is appropriate for that specific level of the job. It
can also be used to improve the employee onboarding process, presenting all
information regarding the role in a clear, succinct, and reliable manner.
Job classification system(s) in the workplace
A clear example of job classification in action can be seen when comparing the
roles of an employee to those of managers or executives. Team members that
have not yet reached manager level may be compensated on an hourly basis, with
a limited package of benefits that apply both in and out of the workplace
(such as tech allowances, health and wellness funds, and full-spectrum
healthcare coverage). The budget would be set to reflect their roles, which
may include administrative work, light specialty services, or reporting
tasks.
Managers, on the other hand, may be expected to manage a medium to large-sized
team — which generally comes with advancement in pay. This can be reflected
either on an hourly or a salary basis. They may also be eligible for a more
advanced suite of benefits, depending on the company type, status, and
expectations of the role.
Finally, executives serve as one of the roles that stand in stark contrast to
the team member role, generally being classified as a role with higher pay, an
intense scope of work, and full-scale benefits in every possible area. In
alignment with this, however, there may be certain performance expectations or
specialized knowledge that isn’t required in other roles that lie lower on the
hierarchical structure.
Understanding these differences through the lens and scope of job
classification is essential to inspiring a fair and equitable workplace
experience.
Pros and cons of classification
While job classification can seem like a more obvious solution for
up-and-coming businesses, it’s important to consider possible advantages and
disadvantages to ensure that you’re getting the most possible benefit for your
current state of business.
A possible advantage of using job classification in your HR process is the
streamlined workflow that it can bring to human resources professionals as
they navigate recruitment steps. This is done in parallel to drafting
and building a strong onboarding process. Consolidation of pay structure can
make compensation simple and erases opportunities for risk that may be present
with less standardized methods.
A possible disadvantage, however, is the lack of exterior data that can
influence this process. This leaves room for subjectivity — which is why
having transparency around this process is critical for successful
implementation and adaptation. Additionally, rigidity in this process can lead
to “disconnects” between employee expectations around role and scope,
especially as we continue to see monumental shifts going into the post-Great
Resignation era.
Consulting stakeholders at every step of the process and maintaining an
employee-forward process at all times can help you to make job classification
a helpful resource in your business.
Connect with Bambee today for job classification support
Looking to streamline your HR process for job classification, HR policy
creation, and ongoing audits? Connect with the team at
today. Our experts are here to provide custom HR support, starting at just
$99/month.