Job Evaluation and Salary Design


Published on

Presentation of Raffy Perfecto during the 3rd HR FREE Learning EB

Published in: Business, Technology
  • Dear Mr. Sonnie, could you please share with me and send to ?
    Are you sure you want to  Yes  No
    Your message goes here
  • Sir please. need it badly .
    Are you sure you want to  Yes  No
    Your message goes here
  • can u please share it to me. need it badly for our mba report dis sunday. kindly send it to it will be great help
    Are you sure you want to  Yes  No
    Your message goes here
  • HI Good day
    Are you sure you want to  Yes  No
    Your message goes here
  • Thanks for sharing this presentation. Is there any particular model which helps in deciding the points to be given to the job factors?
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Job Evaluation and Salary Design

  2. 2. EFFECTIVE SALARY ADMINISTRATION Internal Job Value - Job Evaluation External Job Value - Salary Survey/Design Pay for Performance - Performance Appraisal
  3. 3. OBJECTIVES OF JOB EVALUATION To Measure the value of jobs within the company To attract and retain highly-motivated and well- qualified employees
  4. 4. JOB EVALUATION A systematic process of measuring the relative value of jobs within the organization for the purpose of administering compensation in a rational way. PERFORMANCE APPRAISAL An objective process of measuring the performance (quantity & quality of output) of an employee for the purpose of motivation, performance improvement, and reward.
  5. 5. JOB ANALYSIS <ul><li>Methods of Job Analysis (Interview, Questionnaire, Observation) </li></ul><ul><li>Sources of Job Information (Primary, Secondary) </li></ul><ul><li>Job Data Analysis (What, How, Where, How often) </li></ul>
  6. 6. JOB DESCRIPTIONS <ul><li>What is a job description? </li></ul><ul><li>Uses of Job Descriptions </li></ul><ul><li>Steps in developing job descriptions </li></ul>
  7. 7. Steps in Developing Job Descriptions <ul><li>Conduct job analysis </li></ul><ul><li>Identify position title and reporting relationships based on Organization Chart </li></ul><ul><li>Define job objectives </li></ul><ul><li>List down duties and responsibilities </li></ul><ul><li>List down minimum and preferred qualifications of the job </li></ul><ul><li>Submit job description for approval </li></ul>
  8. 8. Job Description Format <ul><li>Position Title: </li></ul><ul><li>Department/Section/Unit: </li></ul><ul><li>Reports to: </li></ul><ul><li>Supervises: </li></ul><ul><li>Job Summary: </li></ul><ul><li>Duties & Responsibilities: </li></ul><ul><li>Job Specifications: (qualification requirements) </li></ul>
  9. 9. WORDS TO AVOID <ul><li>Performs </li></ul><ul><li>Ensures </li></ul><ul><li>Assists </li></ul><ul><li>Coordinates </li></ul><ul><li>Prepares </li></ul><ul><li>Liaises </li></ul><ul><li>Monitors </li></ul><ul><li>Entertains </li></ul>
  10. 10. WORDS TO AVOID <ul><li>Implements </li></ul><ul><li>Facilitates </li></ul><ul><li>Maintains </li></ul>
  11. 11. ENSURING FAIRNESS & OBJECTIVITY IN THE RATING PROCESS <ul><li>Select Job Factors that are important to your company </li></ul><ul><li>Identify credible members for your Job Evaluation Committee </li></ul><ul><li>Consider using the Point Rating System </li></ul><ul><li>A third party or consultant can improve the credibility of the program </li></ul>
  12. 12. ENSURING FAIRNESS & OBJECTIVITY IN THE RATING PROCESS <ul><li>Select Job Factors that are important to your company </li></ul><ul><li>Appoint a Job Evaluation Committee </li></ul><ul><li>Use a third party or consultant </li></ul><ul><li>Use the Point Rating System </li></ul>
  13. 13. JOB FACTORS Relevant work experience Education Accountability Human Relations Skill Analysis & Decision Making Working conditions (Hazards & Physical demands) Supervision
  14. 14. Note: Each factor is assigned percentage weights depending on which factors management wishes to give greater weight or importance. JOB RATING PLAN The measuring device used to rate jobs. It defines the individual job factors and their corresponding degrees.
  15. 15. <ul><li>FUNCTIONS: </li></ul><ul><li>Establishing and recommending the job rating plan </li></ul><ul><li>Job clarification </li></ul><ul><li>Discussion & deliberation </li></ul><ul><li>Objective rating </li></ul>JOB EVALUATION COMMITTEE A group of five (5) to nine (9) managers of the company, representing the different departments/divisions, who will be responsible for rating the different jobs.
  16. 16. WAGE DISTORTION “ A situation where an increase in the prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation”
  17. 17. SALARY MARKET DATA <ul><li>Rationale for conducting salary surveys </li></ul><ul><li>Selecting companies to be surveyed: </li></ul><ul><li>Geography </li></ul><ul><li>Industry </li></ul><ul><li>Size </li></ul><ul><li>Combination </li></ul><ul><li>Competition (for good people) </li></ul>
  18. 18. Sources of Salary Data <ul><li>Own Survey </li></ul><ul><li>Joint Survey (groups or associations) </li></ul><ul><li>“ Off-the-shelf” or third party surveys </li></ul><ul><li>Customized third party surveys </li></ul>
  19. 19. SALARY STRUCTURE DESIGN <ul><li>Conduct or participate in a salary survey. </li></ul><ul><li>Depending on company philosophy or direction, the structure is based on the survey average, median, or higher survey results. </li></ul><ul><li>Each job grade is assigned a Salary Range </li></ul><ul><li>A salary structure is composed of several salary ranges. </li></ul><ul><li>Each salary range has a minimum rate, a mid-point rate, and a maximum rate. </li></ul>
  20. 20. Analyzing Market Data <ul><li>Analyze your company data versus survey average or median </li></ul><ul><li>Indicate variances in percentage </li></ul><ul><li>Draw a Salary Survey Chart showing: </li></ul><ul><li>Survey Low </li></ul><ul><li>Survey High </li></ul><ul><li>Survey Median </li></ul><ul><li>Survey Average </li></ul><ul><li>Your Company Actual Average </li></ul>
  21. 21. Basic Rules in Designing a Salary Structure <ul><li>Compute the Hiring Rate of Job Grade One. (Should not be lower than prevailing minimum wage law) </li></ul><ul><li>Decide on the Salary Range Spread of 50% or 60%. (Multiply Hiring Rate x 1.5 for 50% or 1.6 for 60% to get Max Rate) </li></ul><ul><li>Compute Mid-Point Rate for JG-1 by adding Hiring Rate & Maximum Rate divided by 2. </li></ul>
  22. 22. Basic Rules in Designing a Salary Structure <ul><li>Closely observe the variances between your actual average and survey average per job grade, from the lowest to the highest job grade. </li></ul><ul><li>% Interval between job grades should be the same or higher (never lower). </li></ul><ul><li>Decide appropriate % interval to bring your proposed Mid-Point Rate close to the market average. </li></ul>
  23. 23. TYPES OF SALARY INCREASES Merit Increase (based on performance) Promotion Increase Skill or Competency Increase Salary Adjustment: JE implementation, JE reclassification General Increase or “across-the-board”
  24. 24. FOR YOUR TRAINING NEEDS. “ Excellence in People Development.” TEL: (02)964-7068; 0917-890-9595 FAX: 806-5743 EMAIL: [email_address]