Pay Equity – Job Evaluation

Points method

Source: Pay Equity Commission Ontario

Introduction - Pay Equity
In pay equity, neutral jobs cannot be used for comparison purposes.
Each job class is given a value based on skill, effort, responsibility and
working conditions which equal the total value of the job.
Female job classes are then compared to male job classes. Where they
have the same or comparable value, they must be paid the same.
In some cases, pay adjustments will have to be made to female jobs,
equal to the rate of comparable male jobs.
Jobs are valued on skill, effort, responsibility and working conditions.
Comparable jobs are close in value or points.
If a female job class is paid less than its male comparator, a pay equity
adjustment is required.
Source: Pay Equity Commission Ontario
Job classes
Job classes are one or more positions that have 4 things in
common:
1.Similar duties and responsibilities;
2.Similar qualifications;
3.Are filled by similar recruiting procedures, and
4.Have the same compensation schedule, salary range or range
of salary rates

Source: Pay Equity Commission Ontario

Four compensable factors
• The four factors; Skill, Effort, Responsibility & Working conditions are
commonly divided into sub-factors.
• Sub-factors should be appropriate to the workplace where the work is
being measured. The sub-factors that make sense in a sporting goods
store will not likely be the same as for a small engineering firm or for
an elder-care agency.
• To measure the amount of a sub-factor in each job, it is divided into
levels, with points attached to each level.

Source: Pay Equity Commission Ontario

Four Compensable Factors

Source: Pay Equity Commission Ontario

Compensable Factors & Sub-Factors

Skill: This factor measures the skill required to do the job which
includes education and experience.
• Knowledge, Education, Experience
• Interpersonal Skills/Contacts
• Problem Solving/Judgement

Source: Pay Equity Commission Ontario

Compensable Factors/Sub-Factors
Effort:
• Mental Effort: While all jobs require some mental effort, this
factor measures the amount of attentiveness and/or
concentration when it becomes a consideration in performing
the job.

• Physical Effort: This factor measures the amount and frequency

of physical activity – light, medium and heavy –and the duration
in the job.

Source: Pay Equity Commission Ontario

 Compensable Factors/Sub-Factors
Responsibility: This factor measures the level of accountability
for things like confidentiality, decisions, quality control, production,
financial, human, information and material resources, results,
safekeeping and teamwork. Working

Conditions: This factor measures the frequency and degree of

exposure to disagreeable elements and hazards in the physical
and psychological environment, such as deadlines, conflict, health
hazards, interruptions, stress, noise from open office
environments, crowded conditions, and confined awkward spaces.

Source: Pay Equity Commission Ontario

Job Evaluation - Sub-Factors
Sub-Factors: It is difficult to grasp the scope of the work content
just by looking at the four factors required by the Act.
Therefore skill, effort, responsibility and working conditions are
usually broken down into general descriptive categories. In other
words, each factor can be divided into sub-factors.
This more detailed tool is commonly referred to as a job
evaluation (JE) system.

Source: Pay Equity Commission Ontario

Weighing the factors & sub-factors - example
Factors Subfactors

•Knowledge (10%)
Skill (30%) •Problem-solving/judgement (12%)
•Interpersonal skills/contacts (8%)

Effort (25% •Mental effort (15%)

•Physical effort (10%)

•Human resources (12%)

Responsibility (35%) •Financial resources (8 %)
•Information resources (10%)
•Material resources (5%)

Working Conditions (10%) •Environment (10%)

Source: Pay Equity Commission Ontario

 Gender Neutral Evaluation
• A gender neutral process of job comparison examines the skill, effort,
responsibility and working conditions required to do the job, regardless of
whether women or men traditionally do the work.
• Undervaluing women's jobs arises from overlooking job content, particularly if
it is associated with women's traditional roles such as caregiving and
communicating with people who are upset, irate or irrational. Disagreeable
elements and stress are often not recognized as features of work.
For e.g. the stock clerk is given credit for lifting boxes weighing 20lbs. or more,
regularly whereas the checkout clerk is given no credit for lifting objects.
To make this gender neutral, you would give the checkout clerk credit for
lifting boxes weighing 20lbs. or more, occasionally and credit for lifting small
objects, continually.

Source: Pay Equity Commission Ontario

The Points Method
Decide the total number of points for your system. The majority of
systems use 1,000 points to make calculations easier. Therefore
if a job class was rated at the top level for every sub-factor in the
system, the total points for that job class would be 1,000.

Step 1:Determine the sub-factors for each factor. Determine the

percentage for each factor. Take the percentage for each factor and
multiply it by 10 to determine the points assigned to each factor
Example: If skill is weighted at 35% of the system, then the total points
would be 350 (10 x 35 = 350 points)

Source: Pay Equity Commission Ontario

The Points Method

Step 2: Distribute the percentage allotted for each across your sub-
factors. Take the percentage for each sub-factor and multiply it by 10
to determine the points assigned to each sub-factor.
Example: If communication skill is weighted at 10% of the system,
then the total points would be 100 (10 x 10 = 100 points).

Source: Pay Equity Commission Ontario

 Create an excel sheet
Skill ( )% Weight Points Points for levels / degrees
1 2 3 4 5
1. Knowledge / Education %
2. Interpersonal skills %

You would repeat this procedure for each factor / sub-factor.

Source: Pay Equity Commission Ontario

The Points Method
Step 3: Determine the total points for each level / degree. Divide the
total number of points assigned to each sub-factor by the number of its
levels / degrees.
Example: If communication skill has 100 points, divide 100 by the
number of levels (4).
Each level / degree is assigned 25 points.

Level 1 = 25 points
Level 2 = 50 points
Level 3 = 75 points
Level 4 = 100 points
If the sub-factor had 5 levels, then the total points for each level would
be 20 points.
Source: Pay Equity Commission Ontario
 Scaling - Levels / Degrees
Knowledge/Education/Experience
(%)
Measures:
Education
Job knowledge
Life and work experiences
On-or-off the job training
(How much time is needed to learn
the job: up to 3 months, 3-6
months, 6-12 months, 1-2 years,
more than 2 years)
0 No knowledge required, no previous experience
1 Little acquired knowledge, little training
2 Some acquired knowledge, job specific courses may be needed
3 Higher level of acquired job knowledge and schooling, job
specific courses, longer training period required
4 Some specialized acquired knowledge, required combination of
courses or schooling required, designation or certification, may
need to update skills periodically
5 Specialized acquired knowledge, advanced degree or
certification, lengthy periods of training, requirement for
continuous update of skills and knowledge.
Source: Pay Equity Commission Ontario
The Points Method
Step 4 (optional):  Shade up (+) or down (-) when you need more
flexibility
• Example: if a job class fits best in Level 2 under the Communication skills
sub-factor, but on occasion the person doing this job has to provide
explanations on complex material, the job class may be scored properly at
Level 2+.
• To calculate points for the "+" or "−" factor, divide the number of points
allotted to Level 1 by 3, and add or subtract that amount.
• Example: If each level of the Communication Skills has 25 points, divide 25 by
3.
• The "+" or "−" factor is 8.3 points. Add or subtract that amount from the
appropriate level.
Note: You will need to round off your numbers.
Source: Pay Equity Commission Ontario
Next step - Create a Master Summary Rating
There are two methods to compare jobs The Act directs employers to
use either or both of the two comparison methods for achieving pay
equity for female job classes:
1.Job-to-Job (J-J)
2.Proportional Value (PV).
• Pay equity is achieved when a female job class is paid at least the
same as a male job class of equal or comparable value. Equal or
comparable value means similar, not necessarily identical, in value.

Note: for the assignment you are to use the job-to-job method.
Source: Pay Equity Commission Ontario
Proportional Value (PV) Comparisons/Indirect comparisons
Proportional value is a method of indirectly comparing female and male job
classes and is used to provide pay equity for female job classes or any
unmatched female job class under the job-to-job method.
• Pay equity is achieved using the proportional value method of comparison
when every female job class is compared to a representative group of male
job classes.
• Pay equity is achieved using the proportional value method of comparison
when every female job class is compared to a representative group of male
job classes.
• Employers are required to look at the way male job classes are paid in the
organization by examining the relationship between the value of the work
performed and the compensation received.
Source: Pay Equity Commission Ontario
Job-to-Job (J-J) Comparisons/Direct comparisons

With the job-to-job comparison method, male comparator job classes

of "equal or comparable" value need to be identified for each female
job class. Job rate (pay and benefits) comparisons shall be made only
between the female job classes and their male comparator job classes.
For e.g. a female job class, Customer Service Supervisor, was given a
value of 565 points. One can look at any male jobs that fall within 537
and 593 points as equal or comparable male jobs.

Source: Pay Equity Commission Ontario

Job Classes - Male and Female
The following job classes are female job classes The following job classes are male job classes
Accounting Clerk Accountant
Accounting Supervisor Controller
Administrative Assistant Market Analyst
Customer Service Clerk Marketing Manager
Marketing Coordinator President
Receptionist Programmer
Secretary Sales Manager
Sales Representative
Shipper/Reciever
Warehouse Manager

Source: Pay Equity Commission Ontario

Female job classes with male comparators and total pay equity adjustment

Female Job Male Comparator Pay Equity

Points Points
Class Job Class Adjustment

Accounting
570 Programmer 555 $1.00/hr
Supervisor

Administrative
490 Shipper/Receiver 470 $1.00/hr
Assistant

Source: Pay Equity Commission Ontario

Points method overview
1. Choose sub-factors to fit the jobs in your workplace
2. Determine which sub-factors are more important or significant
3. Use levels / degrees to measure how a sub-factor is present in a
job, and
4. Assign weightage to factors based on importance
5. Allocate points to each sub-factor
6. Identify male comparators of equal or comparable value, or;
7. look for lower value, higher paid male comparators
8. Adjust job rates for female job classes where necessary
Source: Pay Equity Commission Ontario