HR Specialist responsibilities include preparing compensation and benefits packages, setting up

company policies and maintaining updated employee records. To be successful in this role, you should
have a good understanding of full cycle recruiting and solid knowledge of labor legislation.

CASE STUDY

Lea Reyes is a newly promoted human resource supervisor of a big and modern

hospital in Metro Manila. The hospital is a medium-sized corporation equipped with modern

and state-of-the-art healthcare facilities. It has a total workforce of 500 employees composed

of 15 executives, 10 consultants, 20 managers, 50 supervisors, 25 technicians, 200 nurses and

180 clerical and support staff. Most of these employees are college degree holders

specializing in the medical, paramedical business and liberal arts fields.

Lea finished her undergraduate degree in human resource management with high

academic distinction from a prestigious university five years ago and entered the hospital as

an HR assistant. After two years of employment, she was promoted as an HR specialist in

recruitment. She is very excited about the promotion and wants to enroll in the graduate

school to take up Master in Business Administration with concentration in Hospital

Administration. While working as an HR assistant in the same organization, she encountered

several problems and complaints on compensation administration like delayed salary

adjustments, salary distortions, uncompetitive pay scale, and poorly designed job analysis and

job evaluation programs. She also noticed a high turnover rate mostly from the technical and

professional ranks which she suspected to be caused by poor salary and benefit packages. She

felt helpless and didn't know what to do since her manager was always busy with some labor

relations issues. She also thought that the poor economic conditions in her country coupled by

mediocre human resource management system could be the culprit of these problems.

Now that she is in the position to make some recommendations and influence management,

she thinks it is necessary for her to develop a plan for establishing a compensation system.

I. INTRODUCTION

Employees are the backbone of an organization and no organization is successful without

hiring the right employees for a specific job. Inevitably, organization and firms strives hard to
attain economic prosperity and economic expansion – that being said, there are lot of things an

organization should take into account. For instance, behind every business there are many

departments who are working under the cover. Every department has duties to perform in the

best interest of the business however, the employee related issues and concerns are mainly

handled by human resource department. The role of human resource is crucial from the

standpoint of an organization as it is not just responsible for hiring and firing employees but also

they are dealing with compensations, job analysis, benefits and incentives and motivating

employees that results in valuable personnel for an organization.

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II. RECOMMENDED AND PROPOSED SOLUTION

As a newly promoted supervisor of Human Resource Department of the organization,

encountering and observing the current situation of the hospital needs immediate action and

solution. In order to straighten out the organization’s situation, the Human Resource Department

should make effort in the management of compensation and benefits of the employees of all

levels. Based on the current case of the medium-sized corporation hospital, revision and

establishing a compensation plan and policies is necessary. This should be properly and

thoroughly analysed, strategized and planned for a fair, reliable and competitive compensation

system. However, the primary question in designing a compensation plan is how to begin. What

appropriate action should be done first? What is the first step will the human resource supervisor

make?

As for the aforementioned reasons, establishing and developing a compensation system

needs a suitable compensation structure and this will be done best by following a Job-based

approach as a compensation structure for the hospital.

III. JOB-BASED APPROACH AS A COMPENSATION STRUCTURE

A job-based approach compensation structure is a traditional type of compensation

system but is also a technique that provides systematic, rational and consistent approach to

defining the relative worth of jobs within the organization. This technique has developed largely

as a response to various pay administration issues being encountered similarly to the mediumsized
corporation. With large number of workers being employed which has a total workforce of

500 employees, clear rules for compensation is essential to avoid situations like this in the future

operation of the hospital. Hence, an objective, transparent and systematic way of calculating the

worth of jobs must be mutually agreed upon between employers and employees. With this

reason, using a job-based approach in establishing a compensation system of the hospital is the

most suitable method to solve the concerns.

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III. STEPS IN THE JOB-BASED APPROACH PROCESS

(1) Gather Data and Information regarding the issue of the organization

First and foremost, the supervisor should gather complete data and information about the

issues and current condition of the human resource department. The first step is important as it

needs proof and strong evidences in order for the supervisor to recommend and influence the

management. Above all, developing a compensation plan is usually drafted jointly by company

executives and the human resource team. Therefore, it is essential to start from the basic to report

the accurate facts only.

(2) Conduct a Job Analysis

The second step is to conduct a job analysis to examine and analyse duties and

responsibilities necessarily entailed by a job. This begin by establishing a list of all position in

the organization. This process will also require exact information on the nature of the job, such

as the content and level of the jobholder’s responsibilities and conditions in which the job will be
performed. This step also gathers personal characteristics that the employee must retain to

perform the job well.

(3) Job Description Preparation

The information gathered in the previous step “Job Analysis” is then recorded briefly and

concisely into a job description. This step is the summary of the most relevant features of the

jobs in the organization. Intuitively, the job description should be written so that employees or

personnel whether familiar or familiar with the job will be guided accordingly.

(4) Job Evaluation

The next step is to select an appropriate method of evaluating the jobs. There are two

ways used to evaluate jobs: Non-quantitative and Quantitative method. In this case, it is

recommended to use Non-quantitative method specifically ranking method. Given the workforce

of 500 employees, this method can rank the jobs in the organization from highest to lowest. This

method is also easy to administer and is considered the simplest, easy to understand, and

implement.

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JOB TITLE RANK

Executives 1

Consultants 2

Managers 3

Supervisors 4

Technicians 5

Nurses 6

Clerical and Support Staff 7

Table 1: Job Ranking in the Medium-sized corporation hospital

(5) Creation of Job Level or Grades

In this step, it is essential to objectively and accurately assign value to all individual

positions within the organization. The job levels should also be created rightly and appropriately.

If the job levelling done inaccurately, this will result into dissatisfaction of the workforce and the

organization may no longer operate in the future. Hence, It should be well structured by the

Human Resource Team to establish the compensation system of the hospital effectively.

(6) Wage or Pay Rates Determination

This step translates the previous step which are the grades into wage levels. The

determination of wages tends to be influenced by wider considerations of the organization’s

overall wage policy, including the comparisons with external rates. It should also be noted that in

determining the wage and pay rates, there are factors to consider like labour unions and others in

which the organization should look into.

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(7) Adjusting Pay Structure

Lastly, as any other organizations evolved, work organization also changes over time.

Therefore, it can possibly affect job content and job evaluated structures. As the final step, the

Human Resource Team guided by the supervisor should establish appropriate measures to

monitor, evaluate and revise the plan for settlement of the organization’s workforce.

III. CONCLUSION

In conclusion, the case study had introduced in establishing and developing a

compensation system in a medium-sized corporation hospital. This method can provide a

positive contribution in solving Human Resource Department’s issues and concern in complaints

on compensation administration like delayed salary adjustments, salary distortions,

uncompetitive pay scale, poorly designed job analysis and job evaluation programs, and high
turnover rate.

Therefore, a well-structured compensation plan play a vital role in an organization. It

is more than a formal document but it is also a product of the organization’s culture as its

structure indicates how employees are being rewarded and treated. Moreover, having a wellstructured
and developed compensation plan helps in attracting, retaining and motivating the

employees through reasonable wages, incentives, and other benefits. Though being consistent

is important, a compensation plan also needs some level of flexibility in order to reflect the

movement and changes in the economy. Overall, following the crucial steps and analysing

proper methods can fuel businesses to run longer and attain goals and objectives.