What is the next step after organizing jobs into a job structure?

After organizing jobs into a job structure, the logical next step is to create a mechanism for assigning their relative value in the organization. This process is essential in establishing a fair and equitable compensation system. Assigning relative value involves evaluating the importance of each job within the structure based on factors such as required skills, responsibilities, experience, and contributions to the organization’s goals.

This step is critical as it determines how jobs compare to one another in terms of worth, which directly informs compensation practices. It ensures that employees are compensated fairly relative to their roles and to the market, facilitating internal equity and external competitiveness. This foundation leads to the development of pay scales and compensation policies that support the overall compensation strategy.

In contrast, developing employee training programs, conducting performance evaluations, or establishing a hiring strategy are subsequent processes that may occur after the job valuation stage, but they do not directly follow the organization of jobs into a structure. These activities are essential in their own right, but they stem from a clear understanding of the job hierarchy and relative values established in the preceding step.