One major use of a work analysis is to prepare job descriptions, or a broad list of tasks and responsibilities connected with the job. Such job descriptions help benchmark the job with other jobs within the company and in the industry, and such benchmarking allows determination of what competitors, or even the company itself pays for similar jobs. In a similar way, an analysis provides job specifications or the skills, qualifications, and competencies required to perform the job. Benchmark within the company and with other companies the industry on the pay levels for similar skill sets and qualifications. Such benchmarking helps companies determine market pay for jobs and positions, and allows them to match or exceed the same in a bid to retain talent and keep employees satisfied.
Do not, however, determine compensation solely by benchmarking job descriptions. Consider geographical factors such as variations in cost of living, skill-set and experience of candidates under different wage levels, the nature of business, and size of the company as possible distorters when benchmarking.
Employee satisfaction directly correlates with pay, and perceived equity in pay. A good analysis is the basis to determining the worth of a job, and designing a just and equitable compensation package for the job. In the contemporary knowledge economy where human resources is a key source of competitive advantage, effective compensation systems determine the ability of firms to attract talent, and an effective analysis remains the major tool toward this purpose.