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Top Five Reasons to Conduct a Job Classification & Compensation Study

PLS Job Classification & Compensation Services

Organizations, whether in the public or private sector, utilize some type of job classification and compensation system. As with any administrative process, there is a continuing need to ensure that the system meets the needs of the organization.

The following are the most common reasons for conducting a formal job classification and compensation project:

Reason No. 1:
Reason No. 1

A study of the current labor market will provide new information to determine whether the organization’s pay structure is appropriate or may need adjustment.

Reason No. 2:
Reason No. 1

A study will provide insight and recommendations as to whether the organization’s current compensation structure, policies and practices are effective or in need of adjustment.

Reason No. 3:
Reason No. 1

A study can determine if the current job classification structure is efficiently structured or may need the introduction of new job classes, mergers of existing classes or the re-titling of classes as more appropriate descriptors of work performed.

Reason No. 4:
Reason No. 1

A study will include the evaluation of the organization’s current job descriptions and the potential need to perform edits and/or major re-writes to improve the utility of the documents as primary sources of information for talent management, performance appraisal, recruitment and retention.

Reason No. 5:
Reason No. 1

A study will enhance an organization’s ability to more effectively comply with statutory requirements regarding pay equity legislation.



PLS has the staff experience and expertise to conduct full-scale job classification and compensation studies and will do so on time and on budget to ensure customer satisfaction and effective project completion and implementation.

As an added service, PLS will, free of charge, classify and price a new or existing job class for one year after the completion of the study.

For more information about our services, or to learn how your organization can benefit from a partnership with PLS, please contact us via email at, or by phone at (800) 827-7576.