How job descriptions increase profits

Getting started with effective people management can be as simple as giving your staff clear job descriptions. We all feel more engaged in a job when we know exactly why we are there and what is expected of us.

Outline the responsibilities and targets for your new and existing staff and you will soon see higher returns on your investment.

Does good people management increase profits?

Employees are at the heart of any business because happy employees mean hefty profits. Your business can’t shine over the competition without an engaged workforce.

To attract and retain the best talent, you need good employment practices. It is no accident that the revenues for the Fortune 100 Best Companies to Work For see increased profits over their competitors.

A Business Health study showed that Australian companies with effective people management practices had profits 159% higher than those with poor employee engagement.

Why job descriptions are important

The simple practice of having job descriptions for your staff can have a dramatic impact on profits.

Businesses whose majority of employees know their responsibilities were found to have profit levels of 125% above those without.

What should you include in a job description?

A detailed organisational structure with clear roles, responsibilities and reporting lines is the basis of a job description.

The time invested will be repaid many times over when everyone knows what they’re doing and why.

At a minimum, a job description includes:

  • An accurate job title
  • The purpose of the role
  • The location of the role
  • Key relationships, both external and internal, including reporting lines
  • Essential qualifications, skills and experience required for the role
  • Key responsibility areas
  • KPIs (key performance indicators)


A job description is by no means exhaustive and may change over time. It’s important to keep your employees updated on changes in their responsibilities.

Speak to your staff regularly about their KPIs and help them track their progress. There may be something you can do to help them achieve the targets.

Work on job descriptions with your staff, and they will feel supported, and you will be more likely to see returns on your investment in them.

Photo by Campaign Creators on Unsplash

About Susan Rochester

Susan Rochester has been managing director of Balance at Work since 2006. Susan has a natural tendency to balance analytical thinking with an optimistic outlook to set direction and solve problems. She is an effective facilitator and constantly creates new and more effective ways of doing things, motivated by helping others to achieve their goals.

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