Job Descriptions - To be or not to be?

Because I mainly work with small and micro-businesses, I am frequently asked, "Are we big enough to need job descriptions?"

And because of the experience that I have had with small and micro-businesses, I answer with a resounding, "Absolutely, you do." As a matter of fact, I am of the opinion that small businesses may need job descriptions more than a larger company needs them. Here is why:

1. Smaller organizations often don't have the expertise of an HR person on-site, so they may "guess" more than larger companies. For instance, they may be hiring a new sales person and assume they can be paid a salary versus an hourly rate of pay. Every HR person worth their salt knows that a business owner can not choose how to pay an employee - the law does that for you - there is litmus test that can be applied to any position to help determine its status under the Fair Labor Standards Act (FLSA). A current and thorough job description helps the organization to critically think through the questions asked of the FLSA, thus leading to the "right" answer about the compensation of a position.

2. Smaller companies have employees who wear many hats. Unlike large organizations, who may have individuals focused on only one thing, the employees of small companies may be asked to perform several different tasks within one position. Linking specific tasks with a specific position allows the business owner to rest assured that everything is being handled - and each employee knows precisely what they are responsible for. Nothing falls through the cracks.

3. Compensation. Now more than ever, compensation structures are becoming outdated, irrelevant, and in many cases - wrong for the company. Job descriptions help to assess the qualifications and competencies needed and desired in a particular position. In doing so, they help you compare to positions outside of the company, bringing increased clarity to how the compensation structure should be developed. Without a proper comparison - you are comparing apples to oranges.

So, while small business owners may believe that job descriptions are optional - or not needed altogether, I encourage you to reconsider their importance.

Happy Managing,
Ericka Heid
HR Now
www.h-r-now.com