Demonstrate how the job analysis is used to determine the pay range of positions.

Many companies have established some sort of pay band or pay range for positions. With this system, you are fully aware of the pay ranges, which display the lowest to the highest pay of a specific position.

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Job analysis looks to determine the various aspects of a job position and the skill set required by the employee who will hold that position. Job analysis can involve looking into the actual person who is, or will be, in the position. Job analysis however, mainly looks at the actual position itself.

The job analysis produces "job evaluation": a way to determine salary and or hourly wages, along with additional compensation (benefits, bonuses, and such). This job evaluation seeks to assess the relative value of a job position. This value can be compared to other jobs in the organization to determine an appropriate pay scale for the specific position.

The company can also compare the job position to the same position at their competitors. In addition, a company can compare the job position to similar positions in other industries. This helps the company determine compensation.

The job analysis takes a detailed look at a position. To determine pay scales, it must look at all the responsibilities inherent in the job. The employer must perform a detailed analysis of this, and other positions in the organization, to ensure compensation is fair. They do not want a person in a position that has less responsibility; that is less complex, and that requires minimal education and training being financially rewarded more so than a person in a position that requires more education, training, and skill.

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