Job evaluation


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Job evaluation

  1. 1. Job Review & ValidationBegins with clear job descriptionComparison to jobs of similar nature in selected surveys 1
  2. 2. Validation teamCompensation selects job reviews Needs updating?description and sends to appropriate validation description. team. Yes No Validation team matches description Go to instructions with closest generic for job descriptions. job title and responsibility level from survey data. The position is Compensation NO YES matches salary data slotted and an A match is with the average of appropriate salary identified position salary data grade assigned. from current year survey report. Changes, if Validation team and necessary, are made Compensation and communicated Manager agree on appropriate salary to the affected grade. employee. 2
  3. 3. Job DescriptionsProvide the organization with documentation of the majorresponsibilities and duties (nature and level of work), jobspecifications (knowledge, skills and abilities) and workingconditions which are required for competent performance ofthe job.  Facilitates job-content evaluation.  Facilitates salary survey exchanges.  Assists in recruiting efforts.  Establishes minimum performance standards.  Assists in defining career paths (succession planning).  Serves as documentation for legal challenges to compensation determinations, job administration and staffing actions.The job description process typically needs to include theimmediate manager/supervisor, department key manager,compensation manager, and incumbent, if applicable.3
  4. 4. Job DescriptionsSnapshot of job -- captures most importantelements of job – Should cover 80% of job.Three major sections: – General Summary – Principle Duties and Responsibilities – Knowledge, Skills, and Abilities 4
  5. 5. Job Description Flow Chart · New Job Manager Discusses· Change to Job Content with the Does the Job match Compensation to an existing Job Yes Job Manager No Manager writes the The Compensation Manager initiates the job description and Manager conducts change and sends it to the the Benchmarking communicates this to Compensation (Internal/External) the employee Manager The determination of the Salary Grade Yes Questions??? No is made and reviewed with the Manager Manager Compensation Final review and communicates completes the final approval by two change(s)to documentation levels of employee(s) 5 Management
  6. 6. “Administrative Exemption” Job Description Preamble“Administrative Exemption” is granted since theprimary duty of this position is the performance ofoffice or non-manual work directly related toassisting the management or general businessoperations of the Company with the running of thebusiness or servicing our customers; and whoseprimary duty includes the exercise of discretionand independent judgment with respect tomatters of significance to the Company. 6
  7. 7. “Executive Exemption”Job Description PreambleNumber of Employees Supervised = 2 or more“Executive Exemption” is granted since the primaryduty of this position is management of a customarilyrecognized department or subdivision. This positioncustomarily and regularly directs the work of two ormore other employees. The incumbent’s suggestionsand recommendations are given particular weight as tohiring, firing, advancement, promotion or otherchange of status of other employees. 7
  8. 8. “Learned Professional Exemption” Job Description Preamble“Learned Professional Exemption” is granted since theprimary duty of this position is the performance of workrequiring knowledge of an advanced type in a field ofscience or learning customarily acquired by a prolongedcourse of specialized intellectual instruction. This positionincludes work requiring the consistent exercise ofdiscretion and judgment, which is predominatelyintellectual in character and requires advanced knowledgegenerally used to analyze, interpret or make deductionsfrom varying facts or circumstances. 8
  9. 9. “Computer Professional Exemption” Job Description Preamble“Computer Professional Exemption” is granted since thisposition has a primary duty of (A) application of systemsanalysis techniques and procedures, including consulting withusers, to determine hardware, software of systems functionalapplications; or (B) design, development, documentationanalysis, creation, testing, or modification of computer systemsor programs, including prototypes, based on and related to userof system design specifications; or, (C) design,documentation, testing , creation or modification of computerprograms related to machine operating systems; or (D) acombination of duties described in (A), (B) and (C), theperformance of which requires the same level of skills. 9
  10. 10. What is a Job Family?A job family is a group of jobs in a majorwork function sharing similar background,education, and experience requirements.  Matching positions to job families is done based upon the duties, responsibilities, background and experience requirements of your positions, not the department or business unit that the position is in.  For instance, while Engineering positions (such as Field Service) may exist in the Operations or Customer Service departments, those jobs are matched to an Engineering job family, not Operations or Customer Service. 10
  11. 11. What is a Career Level? A Career Level is a distinct level of responsibility and proficiency within a job family. In each of the job families positions are typically assigned to one of the following career levels:Management Professional Technician Admin. HourlyM3 - 3rd Level Manager P5 - Expert T3 - Lead A3 - Lead H3 - LeadM2 - 2nd Level Manager P4 - Advanced T2 - Skilled A2 - Skilled H2 - SkilledM1 - 1st Level Manager P3 - Career T1 - Entry A1 - Entry H1 - EntryMS - Supervisor P2 - Intermediate P1 - EntryWhile the definitions and requirements of the survey’s careerlevels are generally consistent across our job families, somedifferences exist between different types of job families (e.g.technical vs. non-technical families). The career levels applicableto each job family are described in terms of the generalexperience/ education, knowledge/skills/abilities, and typicalresponsibilities expected ateach level in each family.NOTE: Executive positions are not assigned career levels,as all are assumed to be top managers. 11
  12. 12. BENCHMARKING MARKET & JOB LEVELS (Example) MECHANICAL ENGINEER 1 (ENTRY LEVEL position) Bachelors Degree in Mechanical Engineering or equivalent experience. MECHANICAL ENGINEER 2 Bachelors Degree in Mechanical Engineering or equivalent experience, and 2 years of applicable mechanical engineering experience. MECHANICAL ENGINEER 3 Experience and Training: Bachelors (Masters preferred) in Mechanical Engineering or equivalent experience, and 5 years of applicable mechanical engineering experience. MECHANICAL ENGINEER 4 Experience and Training: Masters Degree in Mechanical Engineering or equivalent experience, and 8 or more years of applicable progressively complex Mechanical Engineering experience MANUFACTURING ENGINEER 5. Excludes those with full supervisory responsibilities. Experience and Training: Masters Degree in Manufacturing Engineering or equivalent experience, and 10 or more years applicable progressively complex Manufacturing Engineering experience. 12
  13. 13. Benchmarking• Intent is to match base pay to market to remain competitive• Competitive salaries are measured through use of published salary surveys.• Preference is to compare local companies that are similar in terms of skills required, technological sophistication, size, and products. 13
  14. 14. Salary Surveys Survey Sources & Quality ConsiderationsGood  Clear job or role definitions to ensure “apples to apples” comparisons  Efforts to support job matching  Sufficient sample size for statistical inference, i.e., lots of participants!  Full range of compensation elements and appropriate statistical measures  Rigorous data auditing and cleaning  Flexible (electronic) output formatsBad (Let’s just say, “not so good”)  Very brief and/or generalized job definition  Collect average pay per job instead of incumbent-specific data  Base salary only  Averages only  Self-reported data (e.g., professional association surveys of their members)Ugly  Statistically biased (e.g., recruiting firm “surveys”)  Unnamed sources and participants  e.g.,,, Payscale .com 14
  15. 15. Surveys & Appropriate Labor MarketsAppropriate labor market should bedetermined by level of position: Non-Exempt (and Hourly) Local only Exempt Local primary Regional secondary Key Employees & Management National primary Local secondary 15
  16. 16. Surveys & Similar CompaniesCompanies in the salary surveysmeet one or more of the followingcriteria • Similar size business, i.e. complexity of the job is comparable • Companies with similar positions • Geographic location is in the area from which location would recruit to fill the position 16
  17. 17. Non-Benchmark Jobs Jobs for which you can’t get good data Job evaluation is the traditional answer “Slotting” of jobs to estimate market value can be an alternative Link a given job to one or more other benchmark positions that have been market priced, and thereby assigning it to the same reference data. Example: slotting an OD Manager against an HR Manager and a Compensation Manager 17
  18. 18. Position Matching Blended JobsFinancial Systems AnalystMatch to Financial Analyst, Systems Analyst or both?1. “Highest Common Denominator” approach (recommended)Survey Position Market Median Base SalaryFinancial Analyst $60,000Systems Analyst $70,000Reference value for your Financial Systems Analyst should be at least $70,0002. Weighted average blending of dataSurvey Position Market Median Base Salary Percentage of jobFinancial Analyst $60,000 60%Systems Analyst $70,000 40%Reference value for your Financial Systems Analyst should be $64,000 18
  19. 19. Weighting Survey MatchesMost situations “simple averaging” (equal weighting) is appropriateUnder certain (limited) circumstances, sources may be more heavilyweighted to put more emphasis on Industry specific sources orSignificantly better match of survey description to your positionSome organizations weight by the number of companies orincumbents for each data pointSample criteria for weighting Weight 1x: “Meets evaluation standards” • acceptable source and match Weight 2x: “Very trustworthy source” • high quality survey methodology • large participant base Weight 3x: “Most relevant source/match” • highly comparable participants 19
  20. 20. Aging Survey DataSurvey pay statistics are typically “aged” to a common point in timeTo “standardize” data fromsources conducted at different dates 3% annual Aged Aged to Common DateSurvey A: 1/1/09 data x 1.0450 7/1/2010Survey B: 4/1/09 data x 1.0375 7/1/2010Survey C: 7/1/09 data x 1.0300 7/1/2010 To position pay recommendations to be competitive at a certain point in time Pay policy or ranges effectiveJan 1 July 1 Dec 31Lag/Lag Data Aged to Lead/Lag Data Aged to Lead/Lead 20
  21. 21. CommunicationsMake every effort to clearly communicate yourcompensation plan to all employees. However,understand that the compensation plan is a two-wayresponsibility.  Managers and supervisors are expected to explain and answer questions pertaining to the plan.  And to communicate salary information to employees – Salary range for current position – Salary range for next likely position  Employees are expected to understand plan details and put forth behaviors that will result in expected performance. When uncertain about plan practices, employees are expected to ask for further explanation or information. 21