O position and salary plan is a topic that is never off the agenda, precisely because it is such an important item within organizations. It is the strategic differentiator for many companies and helps create a successful organizational culture.
Therefore, a strategic management is focused on promoting more productive workflows with increasingly engaged and satisfied employees. And for this, investing in the creation of a well-defined job and salary plan is the starting point.
Being able to organize the company's human capital internally is what will enable results to be achieved. And this path involves adopting strategies that focus on building professionals' careers.
To achieve the desired organizational efficiency, learn more about management that focuses on retaining talent and attracting qualified professionals.
In this article you will see:
- What is a job and salary plan?
- How important is it for companies?
- What are the benefits of implementing a job and salary plan?
- Job and salary plans: step-by-step instructions
- Main mistakes in structuring the strategy
- How the Jano platform helps you create a job and salary plan
What is a job and salary plan?
When we talk about a job and salary plan, we are referring to an internal company policy. It is a tool that organizes and defines the architecture of hierarchical positions, categorizing fixed remuneration and its variables.
Generally speaking, it is a set of well-established rules and norms in the company's organizational culture, which address important aspects so that each employee can understand the company's plans.
The objective is very simple: to promote the right organization for the company to structure its goals and objectives. And this requires a clear definition of salaries, occupations, skills skills, among other aspects.
An organization's strategic planning must include its objectives and goals. Therefore, defining the company's organizational hierarchy will help you understand the responsibilities of each position and, with that, the salary compatible with the job.
How important is it for companies?
It may seem obvious, but redesigning a job and salary plan in a clear and transparent way helps employees feel more secure and satisfied with their professional development.
It is also important because it helps to make the process of attracting new talent much more assertive and focused on the ideal profile for each need and function that the company requires.
Another important aspect of the job and salary program is that it makes decision-making more assertive within the company.
Each of these points underscores the need to adopt a program that helps promote the company's growth and also eliminates the accumulation of functions.
Organizations that work with the job and salary plan strategy are aware that this policy, when well executed, results in a number of benefits. Some of them include: reducing turnover, increasing productivity, facilitating selection processes and valuing employees for their performance.
Furthermore, for this reason, it is worth looking for an adequate and efficient implementation so that the results can appear satisfactorily.
What are the benefits of implementing a job and salary plan?
A company is able to grow and develop in its sector when it focuses on building a strong and solid organizational culture. And for this, keeping its positions, functions and salary ranges well defined is part of the package.
In addition, implementing a job and salary plan helps to plan the company's finances by assessing the costs of each professional. There are many benefits for both the company and the employee:
Benefits for the company
- Easy decision-making processes
- Retaining talent
- Competitive edge
- Complete and efficient financial planning
- Standardization of functions
- Teamwork strengthened
- Improves employer branding
Employee benefits
- Higher productivity
- Pleasant organizational climate
- Feeling valued
- No accumulation of functions
- Clarity when putting together a future career plan
As you can see, all these issues help the company to better organize its projects and processes, so that the results are even better.
Job and salary plans: step-by-step instructions
In efficient management, the moment of strategy implementation can be the most challenging. But it is possible to establish this methodology without major complications by adopting a simple step-by-step approach.
Company review
It is important to analyze and evaluate the organization as a whole in order to map out essential information for building the job and salary plan.
In this context, we can include all the functions carried out within the company and its financial capacity with medium- and long-term spending planning.
In this way, understanding the company's processes is fundamental to being able to impact and take advantage of the best opportunities for the business.
This is where a meeting with leaders and managers is in order, together with the team, to define future hiring plans and the steps to be taken towards this goal.
Organization and planning
With a clear picture of what needs to be done, it's time to organize the information gathered and strategically plan each stage of the process.
The strategic and administrative aspects need to be well-founded so that the structure of the program is clear and transparent. It also needs to have a positive impact on everyone.
A very important step at this point is definition of specific tools for project implementation.
Effective management software is ideal to help you use the 9-box methodologymethodology, for example, where the development of each employee is monitored and it is possible to promote the employees who stand out the most.
Carrying out research
In order to create a hierarchy of positions and define salaries, benefits and other attractions, it is necessary to carry out various surveys.
Surveys can range from which positions exist within the company to which will need to be created in the long term, as well as a salary survey to make adjustments if necessary.
The salary survey requires extra attention, as it's through it that companies are able to stand out from their competitors, for example.
Market research into salaries makes it possible to update remuneration and invest in offering more attractive opportunities. And this helps to create a positive organizational culture and position the company in the market, adding value to it.
Definition of salary policy
A company's salary policy refers to its internal administration, which would be "the rules of the game", i.e. how the plan will be implemented within the organization.
To encourage team management, the salary policy defines the wages and salaries for each position, corresponding to their performance and development.
Drawing up a salary policy benefits employees, who will have access to valuable information, helping them not to accumulate functions, understanding their day-to-day work and guiding them towards future promotions.
Some criteria can help when defining this salary policy , such as: feedback, performance evaluation, employee experience, among others.
Implementation and dissemination
Once everything has been researched and defined, implementing the job and salary plan must go hand in hand with making it clear, direct and transparent to all employees.
It is crucial that those responsible for this process are able to adhere to the plan within the company's organizational culture. At this stage, the finalization stage, what has been planned is precisely what needs to be included in the dissemination of the job and salary plan to everyone on the team.
The aim is to get employees to visualize their possible career development, improve their performance and be increasingly engaged and motivated.
Main mistakes in structuring the strategy
Whenever a new strategy needs to be implemented, some companies still make small mistakes that are often crucial to jeopardizing the entire success of the plan.
To prevent this from happening in your company, we've listed a few examples. Stay tuned!
Below-market pay
The salary survey is precisely for the company to be able to position itself as an advantageous and competitive option in the market. Therefore, it makes no sense to plan positions and salaries and keep them below what is practiced in the market.
The aim here is to attract the best professionals and this won't be possible if the remuneration isn't in line with the requirements of the job. It is therefore essential to create a salary policy and stick to it.
Not aligning communication to engage employees
Another very important point that should not be overlooked is the sharing and dissemination of everything that is organized to implement the company's culture.
One of HR's main challenges is to engage employees in the projects proposed by management. Therefore, you must not fail to communicate the goals and objectives assigned to each function.
Professionals need to understand how the whole process works and what needs to be done in order to win a promotion, for example.
Creating positions without demand
A very common flaw in the implementation of career and salary plans is the creation of occupations without proper demand. In other words, they are created without prior planning and when they are put into practice, on a day-to-day basis, the lack of need can be seen.
To prevent this from happening and generating unnecessary costs, it's important to make it clear what the expectations, obligations and activities in general are for a given role.
Describing exactly the structure of the positions and their specific functions will help you understand what needs to be done and which functions will actually need to be created in the long term.
Not creating a career plan
One mistake that companies constantly end up making, right after creating the job and salary plan, is certainly not setting up a clear and efficient career plan.
In these cases, by not creating a career plan for its employees, the company is failing to retain talent that could be motivated by the opportunity to grow in their careers.
Therefore, it is expected that the job and salary plan is not left aside and that, together with it, management creates a well-structured career plan so that its employees understand what their goals and objectives will be in order to achieve the longed-for career progression.
This is the topic that will help engage and motivate talent to develop their skills and constantly seek professional development.
How the Jano platform helps you create a job and salary plan
In general, the functionalities of the module for creating a job and salary plan are very simple, intuitive and automatic.
This is the case, for example, with the possibility for companies to register their salary ranges and then carry out a salary analysis of the company.
This analysis makes it easier to understand various issues such as: identifying employees who are within salary expectations, those who are outside and need adjustments, among other details.
In this context, management becomes fairer, more efficient and more beneficial for everyone!
A good example of the benefits of creating a job and salary plan for organizations is that the program can equalize the salary ranges of employees who perform the same activities, but who for one reason or another do not receive the same pay.
Another important point to highlight with the opportunities that the platform offers users is the possibility of analyzing the employee's file, which contains all the important and crucial data about the employee so that the analysis is even more complete and accurate.
With this in mind, Jano software is able to bring value to the workflow in organizations when it offers more agility to processes and efficiency for management to carry out its role.
See how Improvefy can help you create a job and salary plan!
