What method involves establishing wage rates for jobs based on a comparison to a benchmark job?

The method that involves establishing wage rates for jobs based on a comparison to a benchmark job is known as Key Job Comparison. This approach identifies certain benchmark jobs that are well-known and standardized within the market. By assessing these key jobs, organizations can determine the relative worth of other positions in comparison, ensuring that the compensation structure is competitive and fair.

Using benchmark jobs allows companies to make informed decisions about salary ranges and helps in maintaining internal and external equity in pay structures. This method is often utilized in job evaluation processes because it provides a clear, systematic way to evaluate the value of various jobs based on the established standards of these key positions.

The other methods mentioned do not focus specifically on wage rates derived from benchmark comparisons. For example, Job Family refers to a group of jobs that share similar functions or purposes, but it does not directly establish wage rates based on comparison to benchmark jobs. Job Specification details the qualifications and responsibilities of a job rather than addressing pay rates, and Job Posting is simply the process of advertising a job opening rather than a method for determining wage rates.