Posted in:Talent Management
How Companies Create Jobs
Continuing on from our writings last week, we are going to focus on the next phase of job creation. In particular, we are going to emphasize Job Analysis, Job Evaluation, and Job Descriptions.
Knowledge Prevents Future Misery
Sadly, when the exciting time comes to hire employees a lot of Founders jump straight into creating a job posting. Right away this decision will create future messes for those that don’t arm themselves with knowledge on the full job creation process; just one example of where poor judgement can land you into trouble that won’t be recognized until a later point in time when you will be in a state of panic to fix it.
Plus, an instance of where having an HR specialist on your advisory team is important right from the beginning. Those who heed this cautionary advice will be happy to save themselves from stress and financial pain, but Honiva Consulting also enjoys clean-up projects too.
For demonstrative purposes, it is important to remember that 95% of work is never seen in the public eye, just the last 5%. For some people, they call it the 80/20 rule, but with information overload we thought this proportion is more reflective of our current reality.
Think back to when you first started your company and were building your advisory team. For those that survived the early years of bootstrapping and working 16+ hours every day to build a company, you can probably relate to the next statement. You searched for the best experts to guide you in the areas of accounting, banking, and law to setup your company. You stretched your budget to bring together the best advisory team possible. That should be the same motivation for hiring your first critical employees.
Getting back on topic, the first step to creating a job to fill the spots in your newly created Organizational Chart is job analysis. Essentially, this is an exercise in outlining the job specifications for each position in your company. As such, it is important to determine the purpose of each position you are creating. This understanding will guide you in pinpointing the qualifications and work duties attached to each position. If it is relevant for your business, you might want to include different personal attributes and working conditions that future employees would experience should they be selected for these jobs.
At this point, keep in mind that a Job is just a breakdown of a Position. So even though most people use the terms Job Description and Position Description interchangeably, they are very different because they are used for different purposes within the world of Human Resources.
The next step is Job Evaluation, where you attach value to each position within your organizational hierarchy. That is why having your Organizational Chart will help you understand the relationships between positions to make appropriate decisions. Ultimately, job evaluation will help you create a fair pay plan for your employees. There are many methods used to complete job evaluation exercises. Please feel free to contact an HR Services Consultant at Honiva Consulting Ltd. to discuss the best methodology for your company.
Finally, you can combine the job data collected during the job analysis and job evaluation stages to develop full Job Descriptions. As mentioned earlier, these can be called Position Descriptions too. Now you have a full picture of each position within your company.
Next is the exciting part of doing the actual recruitment piece to find people to fit into your new organization. We will visit that topic in 2 weeks to get you started on team building. Our next article will show you how to use the information you gathered during the job evaluation process to setup a pay structure. Then when you are in the recruitment phase you will be equipped to negotiate salaries with candidates appropriately, because you will understand the value of each job. That should prevent you from breaking the bank to grow your team.
Here to Help
For assistance with Job Design tasks, we can be reached for a free confidential consultation at +1-403-470-5350 or [email protected]iva.com. For further details on additional HR service offerings, please visit our website at https://www.honiva.com or follow along for more informative tips by joining us on LinkedIn, Facebook, Twitter, or Instagram. We also run a complementary LinkedIn and Facebook group where you can access free information on how to become an effective and legally compliant employer.