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.