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Strategy, Rewards, and Behaviour

Determining Compensation Values

Chapter 7 Evaluating Jobs: The Job Evaluation Process

Comparing Jobs… Most organizations must be able to compare jobs of different types. — The ESA requires ‘equal pay for equal work’ — Pay Equity require ‘equal pay for work of equal value’ — Requires: — ◦ A job description (see page 266) ◦ A method for evaluating jobs in a gender-bias free manner. Copyright (c) 2010 by Nelson Education Ltd 2 .

responsibilities.Job Analysis The process of collecting information on which job descriptions are based. job description: a summary of the duties. and reporting relationships pertaining to a particular job job specifications: the employee qualifications deemed necessary to successfully perform the duties for a given job Copyright (c) 2010 by Nelson Education Ltd 3 .

Copyright (c) 2010 by Nelson Education Ltd 4 .

Copyright (c) 2010 by Nelson Education Ltd 5 .Pay Equity Requirements — — Job descriptions must contain sufficient detail to determine the following characteristics of the job: ◦ Skill ◦ Effort ◦ Responsibility ◦ Working Conditions Each section must make up at least 10% of the points used to determine ‘value’.

Methods of Job Analysis: observation interviews questionnaires functional job analysis 6 .

Questionnaires – employees and/or managers complete a standardized questionnaire. More common with clerical or manual labour. 7 . Functional Job Analysis – jobs are matched to NOC standards. Interviews – employees are interviewed by a trained individual. Most often used with manual labour.Methods of Job Analysis — — — — Observation – observations are made by a trained individual directly or through video. Rarely used due to the limitations of the NOC descriptions. Most common form of gathering information.

Ranking • ranking method the relative values of different jobs are determined by knowledgeable Individuals Paired Comparison • every job is compared with every other job. based on compensable factors Copyright (c) 2010 by Nelson Education Ltd 8 . providing a basis for a ranking of jobs classification/grading • the use of generic grade descriptions for various classes of jobs to assign pay grades to specific jobs factor comparison method • assigns pay levels to jobs based on the extent to which they embody various job factors Point method • establishes job values by the application of points to each job.

Conducting and Managing the Job Evaluation Process Who Conducts the Job Evaluations? Communicating the Job Evaluation Process Applying Job Evaluation Results Developing Appeal/Review Mechanisms Updating Job Evaluations Copyright (c) 2010 by Nelson Education Ltd 9 .

When to Update Job Evaluations 1 2 3 4 5 • the job itself changes significantly • the strategy of the organization changes • signs that the job evaluation system is no longer working effectively • labour market conditions change significantly • legislative conditions require it Copyright (c) 2010 by Nelson Education Ltd 10 .

Ontario Pay Equity Act 1 2 3 4 5 6 7 8 9 10 Determine what rules apply Identify female and male job classes Establish a body to conduct pay equity Select a gender-neutral job comparison system Collect job information Compare jobs Check for permissible differences Adjust compensation Communicate the results Maintain pay equity Copyright (c) 2010 by Nelson Education Ltd 11 .

shtml — Information on the / Copyright (c) 2010 by Nelson Education Ltd 12 . HRSDC website: http://www.S.onetcenter.Web Links: — The Canadian National Occupational Classification. occupational classification system can be found on the O*Net site: http://online.

html Copyright (c) 2010 by Nelson Education Ltd 13 .Web Links: — — The Pay Equity Task Force: ebarchives/20071121061932/www.gc.collectionscanada.jus tice. Links: — The Ontario Pay Equity Commission provides a website that describes the steps required to achieve pay nglish/pubs_10steps.html Copyright (c) 2010 by Nelson Education Ltd — 14 . along with links to the specific guidelines for each step.

payequity.Using the Internet — To trace through the steps required to create a gender-neutral job evaluation system that complies with Ontario Pay Equity legislation — english/ Copyright (c) 2010 by Nelson Education Ltd 15 .

take the “Pay Equity Quiz” developed by the Ontario Pay Equity Commission.payequity.on.Using the Internet — To test your knowledge of pay equity provisions in an interactive l — Copyright (c) 2010 by Nelson Education Ltd 16 . http://www.