Job and Wage Plan: How to implement in a small business

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Plan for jobs and wages
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What is: A Wage and Salary Plan is a model of the company structure where the duties, duties and responsibilities of each position are described, in addition to specifying the salary for each of these positions.

Main benefits: Having a well defined Job and Salary Plan is essential to provide a Career Plan to all employees of the company, motivating them and increasing their dedication. Providing a plan where employees can ascend the organizational structure of the company is important for the company to retain the best talent, and it is good practice to make transparent to all employees the functions and skills required by each of the positions of the company.

Worksheet of Salaries and Charges

Building a Job and Wage Plan

Every company, regardless of its size, should have a Job and Salary Plan. To show that Small Business can also have this type of Model, we will build, in the example, a Job Plan. If you are the owner or manager of a small business you can follow these steps in your business.

Registration of Positions, Salaries and Employees

The first step for you to start building your Job Plan is to list all of your current positions and salaries for your company. If you have difficulties in this process, do the following: Identify all the functions that need to be done in your company and start grouping them on charges. If you have variations of the same position, as in our example case, try to define what moves from a lower position to a higher position.

Job and Salary Plan: How to implement in a small company 1

After listing all the positions it is time to start listing all of the company's employees currently and what position they carry. Since we are using our Ready Job and Wage Worksheet, it comes with the option of choosing the type of employee engagement, which helps when you have more information about your employees.

Plan for jobs and wages

Worksheet of Salaries and Charges

Building the Career Plan

Now that the jobs have been listed and the employees registered it is time to start describing the relationship of rise among positions within the company. For this you must create the succession logic to achieve each position. Check out the example below:

Plan for jobs and wages

At this stage it is important to be transparent and, if the position does not have a promotion, it is necessary to make this explicit for your employees. Or that the promotion depends on a vacancy being opened, in addition to the growth in the necessary competences. One tip we give is to try to create horizontal promotions, in which one employee grows to a higher position in another area. This avoids clashes and sabotage between leader and team.

After building the succession of positions it is time to start describing the Qualities and Knowledge necessary for each employee to achieve each of these positions. This step is important for employees to understand what they need to study or develop in terms of skills and competencies to reach new heights within their company.

Plan for jobs and wages

After these consolidated data you can even show it to your employees so they will be able to understand what the career plan is and what they need for it. Let's look at the case of our example employee, Zé Carlos:

Plan for jobs and wages

He currently acts in the role of Box I, and needs to develop the behavioral qualities (responsibility, dedication and concentration) and the obligatory technical knowledge (computer science) to climb the company.

Worksheet of Salaries and Charges

So what?

After making your Salary and Wage Plan it is important to communicate them to your employees, both new and old. In addition, once the plan is ready you can start evaluating and managing your employees through a Competency Management.

Do not forget to also always review your plan as the company grows and has more employees. As new functions emerge that generate new jobs, update your Plan and rethink the Career Plan.

If you want to set up your Job and Wage Plan you can use our Job and Wage Plan Worksheet that will assist you step by step in the construction of this Plan. You can test the Worksheet for free by clicking here!

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2 COMMENTS

  1. Diogo,

    Do you have any spreadsheets for creating the Career Plan? I did not find it

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