Job classification refers to a method for categorising all positions inside a corporation and assigning them to a standardised scale based on the general activities, responsibilities, pay level and obligations of each job. Each work is frequently awarded grades or job categorization levels so that it may be properly managed and categorised inside the firm.
Although many firms have distinct job categorization frameworks, the ultimate objective is to appropriately establish job duties. This also allows businesses to compare similar jobs at other firms in their industry. As a result, a job categorization system looks at the skills and abilities required for the role rather than the skill level and ability of someone already in that position. BambooHR explains what job categorization is and why it’s beneficial to utilise in your business.
Why Job classification is Needed?
There are a variety of approaches for classifying jobs, and they typically differ between organisations and sectors. The following are the primary goals of job classification:
- To aid in the recruiting and selection process by establishing important qualifying criteria.
- To assist in the creation and development of performance and assessment standards.
- Assigning duties that are in line with the company’s goal and vision, as well as those that aid in the execution of the company’s business plans and strategies.
- Organizational career and growth routes are identified.
- Establish compensation guidelines.
What is the general hierarchy of Job Classification?
The various job functions and work families can be generated in a variety of ways. There are, however, defined methods for dealing with issues. Logistics, management, salespeople, human resources, accounting, research & innovation, marketing, customer care, shared services, and other job categories are widespread. The job roles are defined based on the activities inside the family.
- CEO – Chief Executive Officer
- Other C-level executives – Chief Operating Officer (CFO), Chief Marketing Manager (CMO)
- Vice President (VP)
- Team leader
- Operator, associate, representative
Pros and Cons of Job Classification
- The finest feature of the job categorization system is that it allows for the grouping of similar or identical work functions into a single category.
- It can help the company build a fair compensation structure for its employees across divisions and improve the company’s operations.
- The duties are divided equitably across the company’s workers once the jobs are categorised in the proper order.
- Employees that execute the same duty across the firm can be promoted using this classification, which includes a raise in pay and a higher job title.
- The broadband wage structure allows the corporation to offer their employees the impression of hierarchy or seniority while yet having a broadband salary structure.
- The disadvantages of the job categorization system include the fact that the data pool is tiny or limited since it only pertains to the business that created it.
- Every current employment position must be re-evaluated for each new job opportunity.
- Because human resources are heavily involved in the evaluation process, job categorization judgements are extremely subjective, and the person performing the evaluation may misinterpret or underestimate the relevance and qualities of a specific work role.