IPMA - Module 4 - Classification

The Third Quartile or Leading the Market

25 % of other companies pay above this level and 75% pay below.

The Second Quartile or Meeting the Market

50% of other companies pay above this level and 50% pay below.

The First Quartile or Lagging the Market

75% of other companies pay above this level and 25% pay below.

Job Standards/Specifications

A generalized description of a group of jobs, that for classification purposes, have the same title.

Task Analysis

Addresses the process of analyzing a particular task into various elements, that is, performance steps; standards of performance; frequency, importance, and complexity of tasks; and tools, equipment, materials, supplies, and technical or professional skill requirements.

Methods for making valid internal equity comparisons

Benchmark specific positions, obtain market data, match your unique positions, define your organizations competitive set

Forms of Variable Pay

Bilingual, Skills, Staff Retention

Point Method

Breaks jobs down into various compensable factors and place weights, or points on them.

Determinants of retention

Characteristics of the employer, job design and work, career opportunities, rewards, employee relationships.

When developing job standards include the following:

Class Title and numeric code, class definition, examples of work, special requirements, experience and training experience, and KSA's.

Pay survey

Collection of data on compensation rates for workers performing similar jobs in other organizations.

Class definition

Describes all of the critical factors that distinguish this specific class title from all other job titles

The type of data information that should be gathered about the aspects of a position

Duties, Supervision, Decisions Made, Contact with Others, Physical Requirements, Worker Requirements.

Examples of work

Examples of work actually performed, action statements that depict work, representative statements of work normally performed at that level.

Necessary Special Requirements

Examples would be licensure, certification, or registration.

Broadbanding

Has a more flexible approach for organizing job structures and rewarding employees, allows the employer to capture more jobs within the organization in that pay range, more consistent with the flattening of organizations and the growing use of multi-dimensional jobs.

Examples of Administrative level jobs are:

Human Resources, Payroll, Accounting, Finance, Marketing, etc..

HR's role in succession planning include

Identify the developmental needs of the workforce, Note employees who might fill future positions, communicate succession planning processes to employees, aid in tracking and updating succession plan efforts, etc.

Salary level and basis test

If an employee makes less than $23,600 per year, or $455 per week the job is non-exempt.

Experience and Training requirements

Includes the minimum experience, education, and/or training which and applicant must possess.

Knowledge, Skills and Abilities

Information concerning facts, principles, procedures, rules. laws, or processes that is possessed in a manner that can be evaluated or tested. The capability of using knowledge with competency. Involves the proficient use of knowledge, or proficiency in a motor or physical work environment.

Typically used to determine the level of difficulty

Interpersonal communication, decision-making, consequences of error, originality, supervision, required KSA's, variety of work assignments

Duties Test

Involves determining whether the job falls into one of the three categories: Executive, Professional, Administrative.

Components of Compensation System

Job Descriptions, Job Analysis, Job Evaluation, Pay Structures, Salary Surveys, Policies and Regulations.

Classification method

Job descriptions of each class are written and then each job in the organization is put into a grade according to the class description that best matches it.

Job Analysis generates

Job prospectus information, recruitment campaign, better understanding of how applications must be handled, processed to evaluate candidates, clear decision-making criteria for selectors to use

Open Range Variations

Market banding is closely linked to the use of market pricing to value jobs.

Ways to increase compensation

Merit pay, market adjustments, COLA"s, stipends, bonuses

Examples of professional level jobs

Physicians, Lawyers, Dentists, Architects, Registered Nurses, Accountants, Engineers.

When conducting audit with employee

Place employee at ease, the tone should be conversational and informal, the interview should be conducted at the employee's worksite, explain the purpose of the interview

Job ranking

Places jobs in order, from highest to lowest, by their value to the organization.

Types of Job Evaluation systems

Point method, Whole job ranking, Factor Comparison

Types of data-gathering methodologies

Questionnaires, Position descriptions, functional statements, organizational charts, focus groups, individual interview, research

Ways in which Job Analysis information is used

Recruitment, Retention, Compensation, Succession Planning

Executive jobs duties typically include

Regularly supervises two or more employees and has management as the primary duty of the position. Has genuine input into the job status of other employees, which includes activities such as hiring, terminating, etc.

Whole Job Ranking

Relies on comparing the whole job against another job that is commonly recognized as being properly classified. AKA - Benchmarking

Job Standards/Specifications

Relies on comparison of the target job against a written standard or specification that generally defines/describes the tasks, level of difficulty, complexity, etc. encompassed by a specific job classification.

Job Component Analysis

Relies on developing weighted criteria that are deemed by the organization to be critical to organizational success. Typically, the criteria are subdivided into degrees of value, which are assigned point values.

Steps in linking pay to performance

Salary will be a percentage of total budget, decide what forms the raises will take, if using dollars make sure the best performers get the most money, do performance appraisals on all employees, etc.

Job analysis can be used in compensation to determine

Skill levels, Compensation job factors, Work environment, responsibilities, Level of Education, Certification requirements.

Non-cash percentage

The actuarial value of employer-paid benefits, perquisites, and paid time off, expressed as a percentage of Annual Base salary

Job Analysis

The process of analyzing a job or occupation into its various components, its organizational structure, work activities, and informational content.

Class Title and Numeric Code

The title expressive of the generic occupation of work and the code would distinguish each class in the job family.

Job Classification

This is used to categorize listings of duties and responsibilities, assign a formal or working job title, place the job within the organizational framework, and identify the essential functions required for successful job performance.

Factor Comparison

Uses such factors as skills, responsibilities, effort, working conditions.

Step Plan Variation

When organizations use pay grades to group individual jobs having approximately the same job worth.