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Wednesday 18 May 2016

HR word of the day - Benchmark Jobs

The concept of benchmark jobs and non-benchmark jobs comes under Job Evaluation in context of Compensation Management.

Benchmark job also known as key jobs may be defined as a job that can be used to anchor the employee’s pay scale and around which other jobs are arranged in the order of their relative worth.
Non-benchmark jobs are on the other hand those jobs that are unique to an organization and the salary grades for these jobs are decided by comparing them with the related benchmark jobs.

Job evaluation can be used to find out the relative worth of each job. Benchmark jobs are mostly the common and defined jobs for which all data related to pay-scales and other specifications are mentioned and readily available.

These jobs also remain consistent across different organizations. They normally have the same set of responsibilities from one organization to other. Data about these jobs are readily available as many people work in these jobs across different organizations. Data about these benchmark jobs are extremely important for conducting the salary surveys. These data can be used by organizations to compare the wages that this organization is offering to its employees and whether they are fair in their wages. 

These data can also be used for job analysis purpose so that workplaces may be reorganized to increase productivity and efficiency of the organization.

Benchmark jobs are more likely to be either jobs inherent to business as a whole (e.g. office manager, HR manager) or industry-specific (e.g. graphic design in the digital media industry). 
Have a great HR day.

Shared by - Maneesh MS, +Maneesh Muralidharanpillai Sr. Executive HR, Appollo Tyres Ltd