Internally Consistent Compensation Systems

Chapter #7

All jobs have to be clearly defined and valued

• Job analysis• Defines job content

• Job evaluation

Job Evaluation defines ee requirements and working conditions

• Determine which analysis program to use• Select and train analysts• Direct job analyst orientation• Write job descriptions

Standard Occupational Classification System, www.bls.gov/soc/

• Look #150 Units of Analysis• Look #151 Major occupational groups

• The new revised SOC will be useful for compensation specialists

Direct Job Analyst Orientation• Conduct the study and start collecting data

Most common methods of job analysis

• Questionnaires– Job encumbents– Two analysts should reach similar conclusions– video

• Observation

Job Descriptions

• Look page # 154

• Must be used to proved compliance

• EEOC• ADA• FLSA

Revised to include new service sector tech jobs

Experience R

equirentsOccupational Requirements

• #155 - #166

O*NET

• O*Net was revised for new tech jobs and service sector jobs

• Six content areas– Experience requirements– Occupation requirements– Workforce characteristics– Worker requirements– Occupation-Specific Information– Worker Characteristics

Experience

• Licensing• Experience and training• Additional education– Degrees– Certifications– Professional associations

Occupational Requirements

• Generalized work activities• Organizational context• Work context

Occupation-specific requirements

• Apply to a narrow set of elements• Look #158

Workforce Characteristics

• Labor market information • Occupational Outlooks

Worker Characteristics

• Abilities

• Work styles

• Interests

• #160

Worker Requirements

• Basic skills• Cross functional skills

• http://online.onetcenter.org

Job evaluation

• To systematically recognize differences in the relative worth among a set of jobs and establish pay differentials

• 3 Universal compensable factors• Skills• Knowledge• Abilities

Job Evaluation Process

• Determine technique• Choose committee• Train the evaluators• Document the evaluation plan• Communicate with EES• Set up appeals process

Techniques

• Market based evaluation• Job content evaluation• Point Method

• Benchmark jobs• Choose compensable factors• Define factor degree• Determine weight of each factor• Determine point values• Evaluate all jobs

How do you balance internal and market considerations with point methods?

• Simple ranking plans• Paired Comparisons• Alternation ranking

• Place jobs into categories

Class exercise

• Calculate geographic pay differences» This ex. will help you to understand what to expect

and what you can ask for when it comes to determine your salary like cost of living differences based on location. Using the following sites caluculate differences in pay for two cities

» OKC and Seattle» www.homefair.com (select salary calculator» www.datamasters.com (select cost – of- living data)» www. bestplaces.net (cost-of-living)» You can also use a search for “salary calculator:” Are the

numbers the same for each website?