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
Design Principles
• Should be based on thorough jab-analysis and demands
of 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.
Process Principles

• 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
• Should 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 • Define factor levels &

scheme Weightage to produce
• Prepare detailed project the basic factor plan
program • Select and analyse test
• Select, Brief, Train jobs
team • Test basic factor plan
• Formulate • Develop scoring model
communication • Prepare full factor plan
Strategy
• Test full factor plan
• Identify and define
• Implement
factors.
The scheme design matrix
  Weeks
Activity
1 1 1 1 1 1 1 1 1 1 2 2 2
  1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2

1 Prepare Initial Factor Plan                                            

2 Test Initial Factor Plan                                            

3 Prepare Final Factor Plan                                            

4 Test final Factor Plan                                            

5 Computerize                                            

6 Test Computerized version                                            

7 Evaluate Benchmarked jobs                                            

8 Conduct Market survey                                            

Design Grade & Pay
9 structure                                            

10 Evaluate remaining jobs                                            

Define Operating
11 procedures                                            

12 Implement                                            

                                               
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’
• Up-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.
 Data presentation
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 Brief description Advantages Disadvantages
General National Available for purchase - Wide coverage, readily Risk of imprecise job
Published Surveys provide an overall available, continuity matching, insufficiently
picture of the pay allows trend analysis specific, quickly out of
levels for different over time, expert date.
occupations in national providers.
and regional labour
markets.
Local Published Surveys Available for purchase - Focus on local market Risk of imprecise job
provide an overall especially for matching, insufficiently
picture of the pay administrative staff and specific, quickly out of
levels for different manual workers. date, providers may
occupations in the not have expertise in
local labour market. pay surveys.
Sector Surveys Available for purchase - Focus on a sector where Risk of imprecise job
provide data on a pay levels may differ matching, insufficiently
sector such as from national rates, specific, quickly out of
charities. deal with particular date.
categories in depth.
Industrial Surveys Surveys, often conducted Focus on an industry, deal Job matching may still not
by an employer and with particular be entirely precise,
trade associations on categories in depth, quickly out of date.
jobs specific to an quality of job matching
industry. may be better than
general or sector
surveys.
Special Surveys Surveys specially conducted Focused, reasonably good Takes time and trouble, may
by an organization. job matching, control of be difficult to get
participants, control of participation, sample
analysis methodology. size may therefore be
inadequate.
 Source Brief description
Pay Clubs Groups of employers who
regularly exchange data
on pay levels.
Published Data In Journals Data on settlements and pay
levels available from
Labour department, and
on national trends in
earnings.
Job Advertisements Pay data obtained from job
advertisements.
Management Consultants' Pay data obtained from the
Databases databases maintained
by management
consultants.
Analysis Of Recruitment Pay data derived from
Data analysis of pay levels
required to recruit staff.
Other Market Intelligence Pay data obtained from
informal contacts or
networks.
Advantages Disadvantages
Focused, precise job Sample size may be small,
matching, control of involve a considerable
participants, control of amount of
analysis methodology, administration, may be
regular data, trends difficult to maintain
data, more information enthusiasm of
may be available on participants.
benefits and pay
policies.
Readily accessible. Mainly about settlements and
trends, little specific
well-matched
information on pay
levels for individual jobs.
Readily accessible, highly Job matching very imprecise,
visible(to both pay information may be
employees and misleading.
employers), up to date
Based on well-researched Only obtainable from specific
and matched data. consultants.
Immediate data. Data random and can be
misleading because of
small sample.
Provide good background. Imprecise, not regularly
available.
 Project Topics
• Wage Issues in a new-age mfg. unit – a case
study
• Emerging Compensation issues at IT-enable
services- 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.
 Thanks…..

Have a peaceful weekend…...