Routes to Internal Equity

Job Analysis
Job Evaluation

The O*Net Approach

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Key Job Analysis Steps

1. 2. 3. 4. Identify Performance Foundation Identify Essential Job Duties/Outcomes Identify Worker Specifications (KSAOs) Summarize in Job Description

1. Performance Foundation
What are the purposes of this organization? What are the purposes of this unit? What are the purposes of this job?

2. Essential Job Duties

Must be only those that are essential Critical for ADA compliance, as well as Equal Pay Act defenses Also for determining FLSA exemptions:

2. Essential Job Duties

Must be only those that are essential Critical for ADA compliance, as well as Equal Pay Act defenses Also for determining FLSA exemptions:
Executive Administrative Professional

3. Identify Worker Specifications

Knowledge: body of information Skill: Level of proficiency on a task Abilities: General, enduring attributes inherited or acquired in previous situations
Capacity to do or to learn

Other
e.g,, Fit and Risk Factors

4. Summarize in Job Description

Title Job Summary Listing/description of Essential Duties Working Conditions Worker Specifications (KSAs)

Routes to Internal Equity

Job Analysis

Job Evaluation

Job Evaluation Methods

Whole Job Approaches
Ranking - most basic; used for small firms
Uses subjective ratings on single criterion (e.g., job complexity) Simple Paired-comparisons Alternation

Classification - mainly for government jobs

18 factors used to score jobs General, Professional and Executive Schedules

Job Evaluation Methods

Quantitative Approach: Point Method
more complex - uses points assigned to compensable factors, and subfactors More structured, thus easier to defend Hay System most well known and most complex

Steps in Point Method

1. 2. 3. 4. 5. 6. 7. 8. Create Job Evaluation Committee Select Benchmark Jobs Choose Compensable Factors Define Factor Degrees Determine Weight of each Factor Determine Point Values Verify Factor Degrees and Point Values Evaluate All Jobs

Steps in Point Method

Create Job Evaluation Committee
Advantages of JE Committees
Broader job knowledge from different perspectives Increased participation leads to increased understanding and commitment to the Job Evaluations.

Selecting members to be on the JE committee

Job incumbents, managers, HR expert, union reps Employees who have knowledge of jobs Manageable size

Steps in Point Method

Select Benchmark Jobs
Generic jobs with similar and agreed upon characteristics Relatively stable Represent entire range of jobs in company Generally accepted in the labor market for purposes of setting pay levels

Steps in Point Method

Choose Compensable Factors
Universal factors:
Skill Effort Responsibility Working Conditions

Custom factors Sub-Factors

Steps in Point Method

Define Factor Degrees
Provides levels within each factor or subfactor Best to define each level in job-specific terms Fewer degrees required if system only needs to cover a smaller range of jobs

Determine Weight of each Factor

Steps in Point Method

Determine Point Values
Set arbitrary maximum (1000 pts) Determine weighted maximum per factor
If responsibility was weighted 10%, it can have maximum score of 100

Divide factor maximum by number of degrees

If 4 factors, 25 pts per degree

Steps in Point Method

Verify Factor Degrees and Point Values
Committee members score random set of jobs Review scores to determine logical consistency and fairness Make sure points are consistent with business strategy of your firm Adjust as necessary