Strategic HRM, Performance Advising, Job Analysis and Evaluation

STRATEGIC HRM, JOB ANALYSIS, -
EVALUATION AND STRATEGIC TOTAL
REWARDS MANAGEMENT
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
11 JUNE 2018

TRAINING PROGRAMME OVERVIEW –
DAY 1
• Strategic Human Resources Management (HRM)
• Strategic Performance Advisor (SPA)
• Diagnosis of the strategic maturity of HRM
• Diagnosing of current Job Analysis practices
• Applying the 5-step, Job Analysis process

TRAINING PROGRAMME OVERVIEW –
DAY 1
• Reviewing and applying of Job Evaluation systems
• Strategic Total Rewards Management (STORM)
• Diagnosis of current STORM – practices and principles
• Salary structuring
• Integrating job analysis, -evaluation & compensation
structure

OBJECTIVE #1:
Strategic HRM and Strategic Performance
Advising

STRATEGIC HUMAN RESOURCES
MANAGEMENT (SHRM)
• SHRM is defined as an approach to managing people that deals with how
the organization’s goals will be achieved through its human resources by
means of integrated HR strategies, policies and practices (Armstrong,
2016).
• SHRM propositions:
❑ The HR of an organization play a strategic role in it’s success
❑ Human capital is a major source of competitive advantage
❑ It is people who implement business strategy
❑ A systematic approach should be adopted to planning and
implementing HR strategies
❑ HR strategies and plans should be integrated with business strategies
and plans

STRATEGIC
PERFORMANCE
ADVISOR (SPA) –
3 PIVOTAL
POINTS
(COTTER, 2017)

DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR SPA
• #1 Embedding HRM strategy in business strategy and able to translate that
strategy into deliverable actions
• #2 Well-defined, implemented and reported HRM performance and ROI
metrics (creating credibility and accountability)
• #3 Generating business intelligence e.g. predictive and strategic analytics
(that shapes, informs, guides and ultimately, influences strategic business
decisions)
• #4 Offering a professional, value-adding business proposition sensitive to
and supportive of business needs, interests and strategic priorities
• #5 Ongoing line management consultation, engagement, coaching and
building trusting, collegial and mutually beneficial business relationships

DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR SPA
• #6 HR Management and practitioners possess business and industry
knowledge, acumen and insight
• #7 HRM collaborates with line management to broker meaningful and
impactful business solutions
• #8 HRM processes, systems and practices are horizontally integrated
(bundled), agile, responsive and stream-lined (that enhance productivity
and efficiency)
• #9 HRM is a transformational initiator, driver and implementer of business
change
• #10 HRM is technology-savvy innovator, enabling and leveraging best
practices (e.g. CoE; Shared Services and e-HRM)

LEARNING
ACTIVITY 1
• Individual Activity:
• Critically review and
evaluate your current HR
performance advising
processes and function
against the ten (10) best
practice criteria. Refer to
the link:
https://www.surveymonke
y.com/r/5X9BTT9
• Group Discussion:
• Identify gaps and
recommend improvement
strategies.

HRM STRATEGIC MATURITY MODEL
(Cotter, 2017)
Level 4: Strategic
HRM
(80%+)
Level 3: Transformational
HRM
(65-79%)
Level 2: Transactional
HRM
(41-64%)
Level 1: Traditional
HRM
(0-40%)

MEASURING THE STRATEGIC IMPACT AND
VALUE OF HRM/L&D
• Over the past 12 months, I’ve developed Survey Monkey quizzes, based on compliance of current HRM/L&D
practices, measured against 10 best practice criteria, that I’ve used on various training and conference speaking
assignments in South Africa, Ghana, Zambia, Mozambique and Kenya.
• The respondents from these five (5) countries were HR/L&D managers and -professionals, representative of
both public and private sector institutions.
• The seven (7) focal points of these mini surveys include the following HRM/L&D value chain processes:
❑ Strategic Performance Advisor (SPA)
❑ Strategic HR Planning
❑ HRM Metrics and Analytics
❑ Strategic Total Rewards Management (STORM)
❑ Skills Auditing
❑ Strategic Learning Partner (SLP)
❑ Ethics of S.A trainers
• Refer to the following links:
• https://www.linkedin.com/pulse/reality-check-chief-human-resources-officers-africa-hrm-cotter-phd/
• https://www.slideshare.net/CharlesCotter/measurement-of-the-strategic-maturity-of-hrm-and-ld-practices-
africa

OVERALL FINDINGS
HRM/L&D Value chain process Number of
respondents (N)
Mean Score Relative Difficulty
ranking
Standard
deviation
Level of Strategic Maturity
Strategic Performance
Advisor (SPA)
38 60% 6 15% Level 2 (Transactional)
Strategic HR Planning 33 57% 4 14% Level 2 (Transactional)
HRM Metrics and Analytics 61 53% 2 11% Level 2 (Transactional)
Strategic Total Rewards
Management (STORM) –
Principles and Best Practices
13 48% 1 8-9% Level 2 (Transactional)
Skills Auditing 29 56% 3 17% Level 2 (Transactional)
Strategic Learning
Partner (SLP)
23 60% 6 13% Level 2 (Transactional)
Ethics of S.A trainers 54 58% 5 12% Level 2 (Transactional)
OVERALL 251 56% Level 2 (Transactional)

0
10
20
30
40
50
60
70
OVERALL FINDINGS
Strategic Performance Advisor HR Planning HR Metrics
STORM Skills Auditing Strategic Learning Partner
Ethics of S.A trainer

0
2
4
6
8
10
12
14
STRATEGIC PERFORMANCE
ADVISOR
31-40 41-50 51-60 61-70 71-80 81-90 90-100

STRATEGIC PERFORMANCE ADVISOR (SPA)
– WIDEST COMPLIANCE GAPS
Range Median Mean Standard Deviation
38-93% 57% 60% 15%
BEST PRACTICE CRITERIA RELATIVE
DIFFICULTY
RANKING
MEAN SCORE
Your organization's HRM function generates business
intelligence e.g. predictive and strategic analytics (that
shapes, informs, guides and ultimately, influences
strategic business decisions)
1 49%
Your organization's HRM function has well-defined,
implemented and reported HRM performance scorecards
and ROI metrics (creating credibility and accountability)
2 50%
Your organization's HRM strategy is embedded in business
strategy and HRM are able to translate that strategy into
deliverable actions
3 54%

STRATEGIC PERFORMANCE ADVISOR (SPA)
– MOST COMPLIANT CRITERIA
DIFFICULTY
RANKING
MEAN SCORE
Your organization's HRM function
collaborates with line management to
broker meaningful and impactful business
solutions
10 69%

THE PURPOSE AND INTENTION
OF A JOB ANALYSIS
What is the need
of the job to exist?
What physical and
mental activities
does the worker
undertake?
When is the job
performed?
Where is the job
performed?
How does the
employee perform
the job?
What qualities and
qualifications are
required to
perform the job?

PRINCIPLES
OF JOB
ANALYSIS
The purpose of job analysis is to identify
and describe, in a systemic and
comprehensive manner
Job analysis is not a study of the
workers, but of their activities and what
is required to perform those activities
Job titles should not lead the analyst into
assumptions about job duties
In a job that involves the use of
machinery, the job analyst should
distinguish between what the worker
does and what “gets” done.

UTILITY & FUNCTIONAL VALUE OF JOB ANALYSIS –
APPLIED TO HRM VALUE CHAIN

JOB DATA
The job’s context/environment
The job’s tasks and duties
Performance standards
Tools and Equipment
Relationships
Job Requirements (KSAE)

QUALITATIVE METHODS OF JOB DATA
COLLECTION

LEARNING ACTIVITY 2
• Group discussion
• Diagnosis of current Job Analysis
practices/processes.
❑ Review your current organizational Job
Analysis practices and processes and indicate
the efficiency and effectiveness. Identify gaps
and recommend improvement strategies.
• Diagnosis of current Job Analysis data
collection methods/techniques.
❑ Review your current organizational Job
Analysis quantitative and qualitative methods
and techniques and indicate their
effectiveness, reliability and validity. Identify
gaps and recommend improvement
strategies.

PHASES OF JOB ANALYSIS (P-D-C-A)

STEP 1: PLANNING THE JOB ANALYSIS
• The key actions of step 1 are listed below:
❑Identify the purpose of a Job Analysis
❑Identify the objectives of a Job Analysis
❑Obtain top management support

STEP 2: PREPARING FOR AND
INTRODUCING JOB ANALYSIS
❑Identify jobs
❑Identify methods and techniques
❑Review existing job documentation
❑Developing Implementation (Action) Plan
❑Communicate process to management and employees

STEP 3:
CONDUCTING
JOB ANALYSIS

STEP 3:
CONDUCTING
JOB ANALYSIS
• The key actions of step 3 are listed
below:
❑ Gather job analysis data
❑ Analyze and interpret data
❑ Review, verify & compile data

STEP 3: DEVELOPING A JOB ANALYSIS
MATRIX - FOCAL POINTS

STEP 3: CONDUCTING JOB ANALYSIS -
PROCESS

STEP 4: DEVELOPING JOB DESCRIPTIONS AND
JOB SPECIFICATIONS
❑Draft Job Descriptions and Job Specifications
❑Review drafts with managers and employees
❑Finalize job descriptions and recommendations

PHASES OF
WRITING A JOB
DESCRIPTION
• Crafting
(Conceptualizing)
• Drafting (Writing)
• Shafting
(Submitting)

STEP 4:
DEVELOPING
JOB
DESCRIPTIONS
AND JOB
SPECIFICATIONS
• Writing Job Descriptions
• The process of job writing
• Who is involved in the process of job description
writing?
• Planning the job writing process
• Preparing for the interview
• Putting the interviewee at ease
• Gathering all the administrative details and
contextual information
• Gathering all the appropriate information regarding
the purpose, functions and tasks of the job
• Summary of Do’s and Don’ts

STEP 5: MAINTAINING & UPDATING JOB DESCRIPTIONS
AND JOB SPECIFICATIONS

STEP 5: MAINTAINING & UPDATING JOB
DESCRIPTIONS AND JOB SPECIFICATIONS
• The key activities of step 5 are:
❑Update job descriptions and job
specifications as the organization changes
❑Periodically review all jobs

LEARNING ACTIVITY 3
• Apply steps 1 and 2 (PLAN) of the Job Analysis
process to a defined organizational context:
❑ Step 1: Planning the Job Analysis
❑ Step 2: Preparing for and Introducing Job
Analysis
• Identify a critical job in your organization. Apply
steps 3-4 (DO and CHECK) of the Job Analysis
process to a defined organizational context.
❑ Job Description
❑ Job Specification
• By referring to the identified, critical job in
your organization, apply step 5 (ACT) of the
Job Analysis process.

DEFINITION, PURPOSE AND OBJECTIVES
OF JOB EVALUATION
• Job Evaluation is the process of determining as systematically and
objectively as possible, the worth of one job relative to another
without regard for personalities or existing structures.
• It tries to make a systematic comparison between jobs to assess
their relative worth for the purpose of establishing a rational pay
structure.
• The purpose is to achieve and maintain an equitable distribution
of basic wages and/or salaries according to level of position.
• The main objectives of such an exercise can be stated as “the
establishment of internal equity with a graded hierarchy of jobs
within the organization and of external equity with the external
market rate for equivalent jobs”.

CRITICAL SUCCESS FACTORS AND BEST PRACTICE
PRINCIPLES OF JOB EVALUATION
• Selection of a system of job evaluation
• Selling the concept and the system to management and
employees
• Designing the job description forms in accordance with company
requirements
• Deciding on how job descriptions are to be written
• Training those people who will write job descriptions and the
Grading Committee
• Monitoring the quality of job descriptions

JOB EVALUATION PROCESS
• Stage 1 is the inflexible part of the process. Although there is
a degree of flexibility in any job evaluation method, one must
observe the grading rules if the system is to retain its
credibility. This stage consists of:
❑Writing the job descriptions in an agreed format
❑Grading of the job description by a trained representative
committee using the job evaluation rules
• Stage 2 is where flexibility must be built into the
remuneration system. This stage consists of:
❑Development of wage and salary structuring, benefits and
incentives within the framework of the market rates, company
policy and ability to pay.

JOB EVALUATION PROCESS - ILLUSTRATED

CRITERIA INFORMING THE SELECTION OF THE
JOB EVALUATION SYSTEM – 3E’s
• Management and staff must understand it; be
committed to it and accept it - EMPOWERED
• Implementation can be quick - EXPEDIENCY
• Updating and maintaining the system will be
quick and easy - EFFICIENCY

PROMINENT JOB
EVALUATION
SYSTEMS
• Hay Group
• Peromnes
• JE Manager/Decision Tree
• T.A.S.K.
• Paterson
• Towers Watson GGS

HAY JOB EVALUATION METHOD
• Hay Group pioneered the “factor comparison” job evaluation method and
modified it in its Guide Charts in the early 1950’s.
• Organizations use the Hay methodology to evaluate jobs against a set of
common factors that measure:
❑ Inputs (required knowledge, skills, and capabilities),
❑ Throughputs (processing of inputs to achieve results)
❑ Outputs (end result expectations from applying inputs constructively)
• During the evaluation process, each job’s content is analyzed relative to
each factor and represented by a numerical value. These factor values are
then totaled to determine the overall job “size.”
• The input-throughput-output model is reflected in the Hay Method as
Know-How, Problem Solving and Accountability. Each grouping can be
further broken down into eight elements for the work value assessment.

HAY JOB
EVALUATION
FACTORS
•Freedom to Act
•Scope
•Impact
Accountability (has three dimensions):
•Technical/Specialized Skills
•Managerial Skills
•Human Relations Skills
Know-How (has three dimensions):
•Thinking Environment
•Thinking Challenge
Problem Solving (has two dimensions):

HAY JOB EVALUATION FACTORS -
ILLUSTRATED

HAY JOB EVALUATION GUIDE CHARTS
• The Guide Charts enable consistent work evaluations. Each of the factors—Know-
How, Problem Solving, and Accountability— has its own Guide Chart that reflects
the identified sub elements.
• Each Guide Chart scale is expandable to account for the complexity and size of the
organization to which it is applied, and the scale descriptions can be modified
when appropriate.
• An important distinction is that the Hay Methodology can be calibrated to the
value systems of other organizations within Hay’s compensation databases. This
enables a wide range of benchmarking activities, potentially improving the
accuracy of market pricing and increasing confidence in job evaluation results.
• Guide Charts expedite the job evaluation process, but considerable expertise is
required to understand the work’s nature to determine the degree to which
elements exist for each factor.
• The power is not only in the tool, but also in the evaluator’s knowledge and skill
and the consistency in the tool’s application across the organization.

PEROMNES
• Peromnes grades show the rank order of jobs within an
organization and allow jobs to be compared by grade with other
jobs both inside and outside the organization.
• Peromnes evaluates and scores jobs in terms of eight factors (21
questions)
• These factors are intrinsic to jobs, do not measure aspects outside
the job and are applicable to all jobs in terms of function and level
in organization.
• The first six evaluate tasks, skills, responsibilities and
relationships (job content) and the last two evaluate education
and further training and experience (job requirements).

PEROMNES JOB EVALUATION FACTORS
• Factor 1: Problem Solving
• Factor 2: Consequence of Judgments
• Factor 3: Pressure of Work
• Factor 4: Knowledge
• Factor 5: Job Impact
• Factor 6: Comprehension
• Factor 7: Educational Qualifications
• Factor 8: Further Training/Experience

PEROMNES RATING SCALE
Related Points Grade Example/Levels
271-288
259-270
249-258
1++
1+
1
Most senior executives and specialists
nationally
231-248
216-230
2
3
Other top management and very senior
specialists
201-215
187-200
173-186
4
5
6
Senior management, high-level specialists
158-172
143-157
128-142
7
8
9
Middle management, superintendants and low-
level specialists
113-127
99-112
85-98
10
11
12
Supervisors, high-level skilled and clerical
73-84
61-72
49-60
37-48
13
14
15
16
Lower-level skilled and clerical
27-36
17-26
0-16
17
18
19
Low-skilled and unskilled

JE MANAGER/DT
• JE Manager is a computerized system designed to eliminate human bias and has
various checks and controls to ensure consistency of results.
• It is transparent as it involves the job holder; the incumbent (where the post is
occupied) to personally answers questions required by the system.
• The system is also non-discriminatory in that the same set of factors, questions,
and parameters are used to measure each job regardless of the incumbent.
• The JE Manager process empowers employees in that they are directly involved in
their own evaluations together with their line managers.
• The system also takes into account the individual and the individual’s role in
adding value to the organization more than other job evaluation system.
• The system recognizes applied competencies acquired formally or informally
without placing an undue emphasis on either.

JE MANAGER/DT
• It also avoids placing an undue emphasis on hierarchical positions or
theoretical number of people supervised and the system specifically
recognizes the specialist roles.
• The system is designed for maximum flexibility allowing full customization
to fit the culture, value system and organization structure.
• JE Manager supports flexible pay structures and can be linked to
competencies and performance management systems.
• The system substantially reduces evaluation time. It reduces the time span
between a request for an evaluation and the evaluation itself.
• No job evaluation committee is required and the time spent on each
evaluation is considerably less than traditional methods.

JE MANAGER/DT FACTORS
• Hay Group’s Decision Tree is a powerful, reliable and user-friendly web-based tool that
simplifies the overall JE process.
• The Decision Tree system helps organizations to build a database of job profiles, evaluate
and validate jobs (online checks and balances), maintain, share, export and archive
information and produce a wide-range of value-add reports.
• The JE Manager measures six factors each on a bi-dimensional basis (X & Y):
❑ Factor 1: Judgment
❑ Factor 2: Planning and leadership
❑ Factor 3: Communication
❑ Factor 4: Job impact
❑ Factor 5: Acquisition and application of knowledge
❑ Factor 6: Skills acquisition and practice

JE MANAGER/DT PROCESS
• Evaluation is done by a trained evaluator on a question and answer basis prompted by the
program. In attendance at the evaluation are the following role-players:
❑ The incumbent;
❑ The incumbents line manager;
❑ The evaluator; and
❑ The incumbents representative (e.g. from a union), if so requested by the incumbent.
• After the evaluation, the results are sent, without alteration, to be audited by an audit
committee. The purpose of the audit is to validate the evaluation result and to ensure
internal equity of jobs within the organization.
• The audit committee is empowered to increase or decrease the evaluation scores, based on
sound reason, in terms of the aforementioned objectives of validity and equity.
• The audit committee is composed of the following four members:
❑ A Chairman, from the Human Resources Department;
❑ A Human Resources evaluation officer;
❑ A representative from the department whose post is being audited; and
❑ A representative from one other department (but not from the Human Resources Department).

JE MANAGER/DT PROCESS
• Should the incumbent consider that the post has been
inappropriately graded, he/she may appeal against the
evaluation.
• An appeal committee will be constituted to consider the appeal.
• The appeal committee may not be composed of members who
audited the post originally.
• The appeal committee, after hearing the appeal, may recommend
the following:
❑No change to the grade(status quo);
❑Re-evaluate the job; and
❑Revise the grade

T.A.S.K. JOB EVALUATION
• Tuned Assessment of Skills and Knowledge
(T.A.S.K.)
• A Patterson plan derivative, the T.A.S.K. system uses
a point system with a number of factors for sub
grading (skill level, knowledge, complexity,
influence, pressure) to address the problem of sub
grading.

T.A.S.K. JOB EVALUATION PROCESS
• The T.A.S.K. job evaluation system evaluates jobs from grade 1 up to grade
26, where grade 1 will be the lowest job and grade 26 the highest job.
• The T.A.S.K. system is based on the skill level requirements of jobs at all
levels and in all functions in an organization.
• All jobs, throughout an organization, can be classified into skill levels
according to established standards.
• To arrive at a job grade the following procedure must be followed:
❑ Determine the skill level of the job;
❑ Determine the points ranges for each of the four factors - Complexity,
Knowledge, Influence and Pressure; and
❑ Determine actual points per range by answering sub factor questions.

T.A.S.K. JOB EVALUATION SKILL
LEVELS
• The T.A.S.K. job evaluation
system categorizes jobs in 5
skill levels:
❑ Level 1: Basic Skills
❑ Level 2: Discretionary
Skills
❑ Level 3: Specialized Skills
❑ Level 4: Tactical Skills
❑ Skill 5: Strategic skills

T.A.S.K. JOB EVALUATION FACTORS
• After the skill level of a post has been determined,
the post is then rated against four factors:
❑Complexity
❑Knowledge
❑Influence
❑Pressure

PATERSON GRADING SYSTEM
• The basic premise of the method is that all jobs, regardless of
level, industry or country, can be compared in terms of the
number and weight of decisions that must be made by the job
incumbent.
• From this comparison a pay structure can be established.
• Paterson maintains that an organization’s pay structure should
reflect the organization and responsibility levels within the
organization, and that responsibility should be measured and
compared in terms of a single factor common to all jobs, namely,
decision-making.
• Paterson defines six kinds of Bands of decision, which are found in
any company. Any job can be defined in terms of these Bands of
decision and the authority relationships, which are involved.

PATERSON
GRADING
SYSTEM
BANDS OF
DECISIONS
BAND F: Policy Making Decisions (Top
Management)BAND
BAND E: Programming Decisions (Senior
Management)BAND
BAND D: Interpretive Decisions (Middle
Management and High Level Specialists)BAND
BAND C: Routine/Process/System Decisions
(Specialist or Skilled Employees)BAND
BAND B: Automatic/Operative/Sub-system
(Partially skilled employees)BAND
BAND A: Defined Decisions (Basic Skilled
Employees)BAND

PATERSON
FACTORS
• Factor 1: Decision-
making/responsibility/judgment (Used
for Banding)
• Factor 2: Supervision/coordination of
people/work (Used for sub-Banding)
• Factor 3: Complexity of tasks (Used for
sub-Banding)
• Factor 4: Variety of tasks (Used for sub-
Banding)
• Factor 5: Degree of precision required
(Used for sub-Banding)
• Factor 6: Work pressure/physical effort
(Used for sub-Banding)

BANDS KIND OF DECISION LEVEL DESCRIPTOR 11 SUB-GRADES KIND OF GRADE
F Policy Making Top Management 11
10
Co-ordinating or Supervisory Policy
Policy
E Programming Senior Management 9
8
Co-ordinating or Supervisory
Programming
Programming
D Interpretive/
Probabilistic
Middle
Management
(Expert)
(Specialist)
(Professional)
7
6
Supervisory
Interpretive
Interpretive
C Routine/Process/
System
Skilled
(Specialist)
(Professional)
5
4
Supervisory
Skilled
Skilled
B Automatic/
Operative/
Sub-system
Partially
Skilled
3
2
Supervisory
Partially skilled
Partially skilled
A Defined Basic Skilled 1 Defined

6 BROAD
BANDS
11
SUB-GRADES
28
SUB-GRADES
F
11 Policy Co-ordinating F5
F4
10 Policy F3
F2
F1
E
9 Programming Co-ordinating E5
E4
8 Programming E3
E2
E1
D
7. Interpretive Co-ordinating D5
D4
6 Interpretive D3
D2
D1
C
5. Skilled/Specialist Co-ordinating C5
C4
4 Skilled/Specialist C3
C2
C1
B
3. Partially skilled Co-ordinating B5
B4
2 Partially skilled B3
B2
B1
A
1. Basic skilled No Co-ordinating
Sub-division
A3
A2
A1

APPLYING PATERSON JOB EVALUATION AND
GRADING PROCEDURE
• Writing the Job Description
• Job Grading – Band the Job Descriptions (Step 1)
• Grading of Supervisory Tasks (Step 2)
• Sub-grading of Jobs (Step 3):
❑variety and complexity of tasks
❑precision
❑pressure of work/physical effort

TOWERS WATSON GLOBAL
GRADING SYSTEM (GGS)
• Towers Watson’s systematic approach to job leveling helps organizations manage the
opportunities and challenges of talent and reward program design including aligning jobs
located in multiple regions or across different lines of business, or creating a career
framework that integrates employees after a merger, acquisition or other structural change.
• Job leveling is an analytical process that can determine the relative value of jobs in your
organization, and it provides a foundation for reward and talent management programs
• The Global Grade calculator allows you to grade jobs following the proprietary Towers Watson
Global Grading methodology using three key steps:
❑ Scope of the business
❑ Band for the job
❑ Grade for the job
• The Global Grades generated by the calculator correlate with those included in the Towers
Watson compensation surveys providing a valuable reference when assessing the
competitiveness of reward packages.

GGS - CAREER MAP
• Career Map is a predefined framework with a series of career bands and levels that
increase in complexity and responsibility, representing career progression opportunities.
• The Career Map framework clarifies the growth in jobs from one level to another based on
responsibilities, scope, impact, required skills and knowledge.
• The criteria, levels and language contained in the baseline framework can be customized to
accommodate your specific organizational requirements, including the development of job
functions and families.
• Each job is mapped to a career band and level. Career bands represent different roles and
how those roles contribute to the organization.
• Career Map is flexible: It organizes jobs based on progressive levels of contribution, and
presents opportunities for career pathing and targeted development.
• It can also enable your organization to engage in robust workforce planning and analytics.

JOB EVALUATION SYSTEMS - COMPARISON

LEARNING ACTIVITY 4
❑ Evaluate the relative merits of
each of the prominent Job
Evaluation systems. Which one
do you favour? Justify your
decision.
❑ Log on to
https://ccc.gradar.com/login
Evaluate and grade the identified
job.
• Provide feedback in the form of
summary

THE EVOLUTION OF REWARD
MANAGEMENT

STRATEGIC TOTAL REWARD
MANAGEMENT (STORM) MODEL

• An effective total rewards strategy enables organizations to deliver the right
amount of rewards, to the right people, at the right time, for the right
reason.
• Best Fit vs. Best Practice vs. Hybrid (integration)
• Reward strategies must be anchored in business reality to be effective.
Which means linking it to your business strategy, the needs of your
employees as well as your organization.
• To be effective, a total rewards package must tie together the
organizational strategy, workforce strategy, and HR strategy. Total
rewards should align each employee with the organizational objectives.
• Appropriate Total Rewards Framework
CONTEXTUAL INTRODUCTION TO STORM

• https://www.surveymonkey.com/r/PQWGNJJ
• #1 Your organization offers competitive and market-related/above market-related
remuneration packages to employees (prospective employees).
• #2 Your organization adequately and accurately recognizes the knowledge, skills,
competencies and experience of employees and rewards are sufficiently flexible and
variable.
• #3 Your organization applies fairness in methods, procedures and practices for
compensating, recognizing and rewarding employee contributions.
• #4 Your organization applies equitable methods, procedures and practices for compensating,
recognizing and rewarding employee contributions.
• #5 Your organization promotes transparency through sharing information about their
compensation practices, pay rates criteria and how they are determined – especially at the
managerial and executive levels.
DIAGNOSIS OF CURRENT REWARD
MANAGEMENT PRACTICES

• #6 Your organization applies consistency (standardization) in the allocation
of remuneration and rewards e.g. performance bonuses and incentives etc.,
thereby serving as a retention and motivation mechanism.
• #7 Your organization applies objectivity throughout the performance
management process, as the pre-cursor and chief determinant of
performance bonuses.
• #8 Your organization has an efficient, user-friendly and stream-lined job
evaluation and job grading process.
• #9 The value of remuneration and rewards offered by your organization is
affordable (feasible) promoting business sustainability and continuity.
• #10 Your organization’s reward system is effective in that it directly
contributes to and enables the achievement of business management goals
e.g. higher levels of productivity and performance.
DIAGNOSIS OF CURRENT REWARD MANAGEMENT
PRACTICES

LEARNING ACTIVITY 5
• Complete the online survey
https://www.surveymonkey.com/r/P
QWGNJJ
• Individual (Diagnosis): Critically
evaluate your organization’s current
rewards management structure
against the 10 best practice criteria.
• Group (Analysis): Identify gaps and
recommend improvement strategies
for these gaps.

0
1
2
3
4
5
6
7
8
STORM - Practices
31-40 41-50 51-60 61-70

STORM PRACTICES – WIDEST
COMPLIANCE GAPS
DIFFICULTY
RANKING
MEAN SCORE
Your organization adequately and accurately recognizes the
knowledge, skills, competencies and experience of employees
and rewards are sufficiently flexible and variable.
1 44%
Your organization promotes transparency through sharing
information about their compensation practices, pay rates
criteria and how they are determined – especially at the
managerial and executive levels.
2 45%
Your organization's reward system is effective in that it directly
contributes to and enables the achievement of business
management goals e.g. higher levels of productivity and
performance.
3 46%

STORM PRACTICES – MOST COMPLIANT
CRITERIA
38-63% 54% 53% 8%
BEST PRACTICE CRITERIA DIFFICULTY
RANKING
MEAN SCORE
The value of remuneration and rewards offered by
your organization is affordable (feasible) promoting
business sustainability and continuity.
10 62%

8 STRATEGIC MANAGEMENT PRINCIPLES
(APPLICABLE TO REWARD MANAGEMENT)
https://www.surveymonkey.com/r/PHKFGQL
• #1: (Vertical) Alignment with business strategy, goals and objectives
• #2: (Horizontal) integration of HRM value chain functions (bundling)
• #3: Rewards Management conducts environmental scanning and is
highly attuned, sensitive to and pro-actively responsive of change
• #4: Rewards Management is future-focused (ensuring that the
organization is future-proof)

8 STRATEGIC MANAGEMENT PRINCIPLES
(APPLICABLE TO REWARD MANAGEMENT)
• https://www.surveymonkey.com/r/PHKFGQL
• #5: Reward management adopts a measurement culture e.g.
scorecards, dashboards, metrics, risk analysis and audits etc.
• #6: Reward management generates business intelligence, enabling
smarter business decision making (operationally and strategically)
• #7: Enables the organization to gain a sustainable, strategic
competitive advantage
• #8: Reward management practices contribute to a positive
organizational climate, culture and higher levels of employee
engagement.

LEARNING ACTIVITY 6
https://www.surveymonkey.com/r/
PHKFGQL
• Individual (Diagnosis): Critically
evaluate your organization’s current
rewards management principles
against the 8 best practice criteria.
• Group (Analysis): Identify gaps and
recommend improvement strategies
for these gaps.

0
1
2
3
4
5
6
7
8
9
10
STORM - Principles
11-20 21-30 31-40 41-50 51-60

STRATEGIC TOTAL REWARDS MANAGEMENT (STORM
PRINCIPLES) – WIDEST COMPLIANCE GAPS
19-54% 42% 43% 9%
BEST PRACTICE CRITERIA RELATIVE DIFFICULTY
RANKING
MEAN SCORE
Your organization's reward management practices are future-
focused (ensuring that the organization is future-proof).
1 32%
Your organization's reward management practices are
vertically aligned with the business strategy, goals and
objectives.
2 36%
Your organization's rewards management practices conduct
environmental scanning and are highly attuned, sensitive to
and proactively responsive to change.
3 37%

STORM PRINCIPLES – MOST
COMPLIANT CRITERIA
BEST PRACTICE CRITERIA DIFFICULTY
RANKING
MEAN SCORE
Your organization's reward management
practices adopt a measurement culture
e.g. scorecards, dashboards, metrics, risk
analysis and audits etc.
8 62%

REMUNERATION AND
RELATED METRICS
❑ Human capital value added (revenue minus operating
expense and cost of compensation/benefit divided by
the total amount of full time employees)
❑ Human capital return on investment: Revenue minus
operating expenses and cost of compensation benefit
divided by cost of compensation/benefit
❑ Total compensation revenue ratio which is cost of
compensation/benefit (e.g. bonuses, mileage paid,
incentives) divided by revenue
❑ Labour Cost per FTE - the average labour cost to the
organization for each FTE

REMUNERATION AND
RELATED METRICS
❑ The number of cents in total compensation and benefits
costs that it took to generate a rand of revenue (as an
indication of compensation effectiveness, where this year's
ratio would be compared to last years ratio)
❑ % of employees that are satisfied with their compensation
(survey of a sample of employees on their satisfaction
between the rewards and the expectations of the firm)
❑ % of employees that are rated in the top performance
appraisal level -that are paid above the average salary for
their position and vice versa
❑ Resignation Rate and
❑ Exit Survey Data

• Step 1: Define the context and issues (environmental analysis)
• Step 2: Set the total reward strategy (guiding principles and reward priorities)
• Step 3: Set reward change agenda (status quo relative to desired end state)
• Step 4: Implementation overview
• Step 5: Design individual plans
• Step 6: Implement
• Step 7: Measure and manage
• Outcome: A cohesive and comprehensive reward strategy that is both value-
oriented and cost-effective and aligned with the organization's business strategy.
CREATING/DEVELOPING A REWARD
STRATEGY (7-STEP PROCESS)

CREATING/DEVELOPING A REWARD
STRATEGY – PROCESS ILLUSTRATION

• Organization strategy:
❑The extent to which you want a centralized or
decentralized approach
❑The culture and design of the organization
• Where the organization is in its lifecycle
• Reward preferences by employees
• Remuneration trends
FACTORS TO CONSIDER WHEN
STRUCTURING SALARIES

• Step 1: Establish your compensation philosophy
• Step 2: Gather market data
• Step 3: Identify benchmark jobs
• Step 4: Measure your market position
• Step 5: Calculate the compa-ratio
TEN STEPS FOR BUILDING A SALARY
STRUCTURE

• Step 6: Check your budget
• Step 7: Start allocating
• Step 8: Final adjustments
• Step 9: Management approval
• Step 10: Communicate
TEN STEPS FOR BUILDING A SALARY
STRUCTURE

LEARNING ACTIVITY 7
• Evaluate the relative
merits of the two
approaches to the salary
structuring process. By
consideration of the four
factors, apply the
approach which you
believe is most viable,
feasible and sustainable in
your organization.

CONCLUSION
• Key points
• Summary
• Questions

CONTACT DETAILS
• Dr. Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: @Charles_Cotter
• https://www.facebook.com/CharlesACotter/
• http://www.slideshare.net/CharlesCotter

Strategic HRM, Performance Advising, Job Analysis and Evaluation

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