Question

2. Describe the role of benchmark jobs in developing a pay line. What are the characteristics of good benchmarks? Based on the analysis of survey data, suggests ways you might be able to determine that a job was really not a benchmark job.

Answer 1

Benchmark Job is a kind of job that can be used as a base to set up and compare pay for the employees since a lot of secondary and primary research has gone into deciding the pay for employees and hence all the pros and cons are taken into account while deciding for benchmark job, hence that can be used for setting up standards, so basically the role is to set up the salaries of other company employees, legal obligations also remain consistent across the industry in which the company operates and also job evaluations can be done using the benchmark job.

Characteristics of good benchmark are that they are consistent in terms of legalities, employees are also in sync with the decisions, a long term stability can be seen and also the economy does not goes for a toss.

Job might not be a benchmark Job if it cannot be used by various companies for comparison, pay is below par or above par as per the industry the company operates in and also lots of revisions are required.