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a Jobs Market Value

In todays world jobs are increasingly unique. Consequently, they have also become more difficult to define and compare, especially for the purpose of determining pay. And yet, if compensation is to be Is t her e a way t o equitable, this is something employers must do. Is there a system measur e a job which enables them to describe each job accurately and measure accur at el y and measur e i t s its relative value to the organization? Yes. Over 150,000 employers in this country use the National Position Evaluation Plan. Heres how it works evaluate jobs, not people.

r el at i ve val ue t o t he or gani zat i on?

Measure jobs in terms of the , and the job normally involves. The plan does not judge anyone individually it does not rate anyones ability to perform a job. In fact, the plan does not measure people at all; it measures jobs and only jobs! It does this by evaluating each job according to factors suited to every job.

The plan has three main advantages. Because it is applied in exactly the same way to all jobs, regardless of their nature or importance, the plan is EQUITABLE. Since the plan is based on a system developed and implemented by people from outside of the organization, it is OBJECTIVE. Because it focuses only on the work a job involves and not the person performing the work, the plan is completely NON-DISCRIMINATORY. The plan allows no favoritism, no bias.

Generally, the plan has five steps. POSITION ANALYSIS: detailed information is gathered about a job's duties and responsibilities by an experienced professional analyst from outside the organization. The information is gathered via direct observation, questionnaires, and interviews with supervisors and managers. POSITION DESCRIPTION: this organizes the information, giving a clear and accurate statement of what the position's duties are and what their normal performance requires. POSITION EVALUATION: after the job is described, the analyst measures the job according to eleven factors that gauge the skill, effort, responsibility, and working conditions involved. Each factor is subdivided into degrees which then allows the analyst to measure the extent of which a given factor applies to each job. POSITION CLASSIFICATION: Classification consists of assigning each job to a grade. The process is simple. Once degrees and corresponding point values have been established for all factors, the points are added up. The total places the position in a pre-determined grade. Each grade has a specific spread of points. PAY DETERMINATION: Now comes the final step; the pay ranges for each grade of work is determined. It is determined according your organization's pay policies and the compensation levels prevailing in your industry (and, further, within your geographic labor market). Then, for all grades, pay ranges are established which are consistent with regional norms. It is within these ranges that each individual's pay will fall.





While the plan's eleven factors apply to every job, they are not equally important. To account for this, they are weighted by means of a point system which assigns higher point values to degrees of the more important factors, and lowers values to those of less importance. A separate set of factors, as well, are used to evaluate both exempt and nonexempt jobs. Harrington & Associates consults with you about your specific needs and operates with the tool box of the National Evaluation Position Plan.