Designing a Job Evaluation Scheme + Market surveys
IIPM Partha S. Raut 14/03/09
Design & Process Criteria
It is necessary to distinguish between the design of a scheme and process of operating it Equal pay considerations have to be taken into account in both design and process
Should be based on thorough jab-analysis and demands jabof the job Should facilitate impartial judgement of the relative job size Factors should cover the whole range of jobs to be evaluatedat all levels without any favors. Should enable benchmarking of different functions thru common factors. Factors should be clearly defined and differentiated. Levels should be defined and graduated Discrimination must be avoided in the choice of factors.
The scheme should be transparent Cultural, ethnic and gender diversity should be involved in the design process. Equality of Role analysis should be monitored Consistency checks should be built into operating procedures Outcome of evaluation should be examined to ensure no-bias noShould not replicate existing hierarchy People involved in the process should be formally trained and knowledgeable. Grade boundaries have to be placed appropriately and allocation of jobs to grades is not discriminatory in itself. Scope of review and appeals.
The scheme Design Program
Decide to develop scheme Prepare detailed project program Select, Brief, Train team Formulate communication Strategy Identify and define factors. Define factor levels & Weightage to produce the basic factor plan Select and analyse test jobs Test basic factor plan Develop scoring model Prepare full factor plan Test full factor plan Implement
The scheme design matrix
Weeks Activity 1 1 2 3 4 5 6 7 8 9 10 11 12 Prepare Initial Factor Plan Test Initial Factor Plan Prepare Final Factor Plan Test final Factor Plan Computerize Test Computerized version Evaluate Benchmarked jobs Conduct Market survey Design Grade & Pay structure Evaluate remaining jobs Define Operating procedures Implement 2 3 4 5 6 7 8 9 1 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 2 9 2 0 2 1 2
Market rate Analysis:
To ensure that the pay levels are competitive
Concept of market rate:
Its basically a matter of perception as there are no absolutes. It s a range even for identical jobs in an industry.
The information required:
Accurate and representative data Proper job-matching jobUp-toUp-to-date information Data interpretation as per needs & circumstances Data presentation to indicate required action
Job Matching Process
Job title Often very misleading Brief description of the job & level of responsibility Capsule JDs this defines the job and the duties attached. Full JD. Job evaluation data.
1. Measures of central tendency
Arithmetic mean : average Median : the middle item in a distribution of individual items 2. Measures of dispersion Upper quartile : The value above which 25% of the values fall Lower Quartile : The value below which 25% of the values fall Interquartile: The diff. between upper & lower quartiles.
Source General National Published Surveys
Brief description Available for purchase provide an overall picture of the pay levels for different occupations in national and regional labour markets. Available for purchase provide an overall picture of the pay levels for different occupations in the local labour market. Available for purchase provide data on a sector such as charities. Surveys, often conducted by an employer and trade associations on jobs specific to an industry.
Advantages Wide coverage, readily available, continuity allows trend analysis over time, expert providers.
Disadvantages Risk of imprecise job matching, insufficiently specific, quickly out of date.
Local Published Surveys
Focus on local market especially for administrative staff and manual workers.
Risk of imprecise job matching, insufficiently specific, quickly out of date, providers may not have expertise in pay surveys. Risk of imprecise job matching, insufficiently specific, quickly out of date. Job matching may still not be entirely precise, quickly out of date.
Focus on a sector where pay levels may differ from national rates, deal with particular categories in depth. Focus on an industry, deal with particular categories in depth, quality of job matching may be better than general or sector surveys. Focused, reasonably good job matching, control of participants, control of analysis methodology.
Surveys specially conducted by an organization.
Takes time and trouble, may be difficult to get participation, sample size may therefore be inadequate.
Source Pay Clubs
Brief description Groups of employers who regularly exchange data on pay levels.
Advantages Focused, precise job matching, control of participants, control of analysis methodology, regular data, trends data, more information may be available on benefits and pay policies. Readily accessible.
Disadvantages Sample size may be small, involve a considerable amount of administration, may be difficult to maintain enthusiasm of participants.
Published Data In Journals
Data on settlements and pay levels available from Labour department, and on national trends in earnings. Pay data obtained from job advertisements.
Mainly about settlements and trends, little specific well-matched information on pay levels for individual jobs. Job matching very imprecise, pay information may be misleading. Only obtainable from specific consultants.
Readily accessible, highly visible(to both employees and employers), up to date Based on well-researched and matched data.
Management Consultants' Databases
Pay data obtained from the databases maintained by management consultants. Pay data derived from analysis of pay levels required to recruit staff. Pay data obtained from informal contacts or networks.
Analysis Of Recruitment Data Other Market Intelligence
Data random and can be misleading because of small sample. Imprecise, not regularly available.
Provide good background.
Wage Issues in a new-age mfg. unit a case newstudy Emerging Compensation issues at IT-enable ITservicesservices- a case study Design a variable pay scheme for support services in a Hotel. Impact of compensation in the spending pattern of Indian Middle class. Impact of compensation in the product pricing in a service industry a case study.
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