Job Classification Initiative

UHR Compensation Team

2

Contents

• Initiative Background

• HR Efficiency Task Force & Provost

• Recommendations

• Successful Outcomes

• Who’s Working on the Initiative

• Projected Timeline

• Roles/Responsibilities by Project Phase

• Example – New Job Classification Process

Background/Goals/

Roles by Project Phase

4

• Current Classification and Pay System (Non-Academic, Non-Bargaining Unit )

• In place since 2000, designed to allow maximum flexibility to determine

employee’s job classification and administer pay accordingly

• Feedback from HR Efficiency Task Force & Provost

• Current system & its administration viewed as complex and bureaucratic

• Inconsistent job classification decisions

• Lack of understanding and trust in current approach

• Tough for employees to navigate their careers

• No perceived connection to competitive market pay

• Job Classification Initiative

• Multi-year initiative to improve current system launched in Nov. 2011

Background– Why Are We Doing This?

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• Job Descriptions

• Standardize job descriptions and predetermine salary grade for each job description

across the University

• Successful Outcome - Improve efficiency by eliminating time spent writing

individualized job descriptions and ensuring consistent salary grade application

across University

• Job Classification System

• Implement a new system whereby each job will be assigned to a salary grade based on

the midpoint that is closest to the job’s market rate

• Successful Outcome - Simplify system and its administration to be clear and

straightforward

• Salary Range Structure

• Replace our current salary range structure with a structure based on midpoints tied to

the external job market

• Successful Outcome - Provide clear connection to competitive market pay

• Clarity/Transparency of Career Levels/Progressions

• Increase understanding of career paths

• Successful Outcome - Improve employee engagement

Recommendations – HR Efficiency Task Force & Provost

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Who’s Working On This Initiative?

Job Classification

Initiative

UHR Compensation Project Team

Member SoM Compensation

Staff Project Team

Member

SLAC Compensation

Staff Project Team

Member

Managers (Subject Matter

Experts)

HR Managers

Advisory Group

Towers Watson

Consulting

Project Team Senior

Leadership

7

New Features • Standardized job descriptions

with predetermined salary grades

for consistency

• Standardized job descriptions will

be available in an on-line library

for easy access

• Salary grade of the job will be

predetermined and indicated on

the job description

• Salary ranges with midpoints

representing external job market

• More career path tools and

information available to

employees and managers

Discontinued Features • Position Summary Form

• A,P, M job grades and ranges

• HRMs grading jobs; will continue

to consult with managers on staff

placement in jobs

Note: • No decrease in salary due to

implementation

• Working titles can remain the

same

Once Implemented–What Can Employees/Managers Expect?

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Job Classification Initiative Timeline (Projected)

Phase 1

Job Description Development

Nov 2011 –

Nov 2012

Phase 2

Set Market Analysis

Foundation

Sept - Dec 2012

Phase 3

Conduct Market Analysis

Dec 2012 -

May 2013

Phase 4

Design Salary Structure & Career Path Descriptions

May - Nov 2013

Phase 5

Prepare to Implement

Nov 2013 -

Feb 2014

Phase 1

Job Description

Development

Nov 2011 – Nov 2012

R O L E S

A C C O U N T A B I L I T I E S

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Project Team/Consultants • Develop job description

template, writing guide

• Draft job descriptions and

collaborate on revisions

• Facilitate focus group meetings

• Finalize job descriptions based

on feedback from managers, HR

staff and team members

Managers • Review draft job descriptions

• Validate job descriptions at focus group

meetings

• Validate final job descriptions

Phase 1: Roles and Accountabilities

Advisory Group • Hold initial meeting, discuss

role and validate project plan

and communication plan

HR Staff • Forward existing job descriptions to

Compensation

• Recommend managers for focus groups

• Validate job descriptions at focus group

meetings

• Keep managers and employees informed

of initiative

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Job Purpose • Overall purpose of job, why the

job exists

Core Duties • Those that are essential to

perform job and take 10%+ time

in job

Minimum Requirements • Education, experience,

knowledge, skills, abilities,

certificates, licenses

Working Conditions • Typical work environment for the

job

Physical Requirements • Aligned with essential

duties/functions of the job

Work Standards • Required standards (e.g.,

expected to comply with all

applicable University

policies/procedures)

New Job Description Template Features

Phase 2

Set Market Analysis

Foundation

Sept – Dec 2012

R O L E S

A C C O U N T A B I L I T I E S

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Project Team/Consultants

• Facilitate and participate in

meetings to review and confirm

Stanford’s compensation

philosophy and market pricing

guidelines

• Draft compensation philosophy

and market pricing guidelines

• Present compensation philosophy

and market pricing guidelines to

senior leaders for approval

Advisory Group

• Participate in the review and

validation of Stanford’s compensation

philosophy and market pricing

guidelines

HR Staff

• Keep managers and employees

informed of initiative

Phase 2: Roles and Accountabilities

Phase 3

Conduct

Market Analysis

Dec 2012 – May 2013

R O L E S

A C C O U N T A B I L I T I E S

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Project Team/Consultants

• Develop materials in support of

market matching sessions

• Facilitate market matching meetings

• Gather market competitive data for

matched jobs

• Review results of market data and

determine implications for salary

range structure design

Advisory Group

• Provide advice on process for market

matching sessions and assist in

driving participation as needed

Phase 3: Roles and Accountabilities

Managers

• Representative managers participate

in market matching sessions

HR Staff

• Recommend managers to attend

market matching sessions

• Representative HR Staff participate

in market matching sessions

• Keep managers and employees

informed of initiative

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What is Market Matching and Why Do It?

• Market Matching

• Employers match their jobs to similar jobs in salary surveys to gather market

data for their jobs

• Market data is then used to set pay to compete in the job market to attract and

retain staff

• Market Matching Meetings

• As part of this initiative, we will facilitate meetings with managers and HR Staff

to match Stanford jobs to similar jobs in salary surveys

Matching Stanford Jobs to Market (Salary Surveys)

Phase 4

Design Salary Structure

& Career Path

Descriptions

May – Nov 2013

R O L E S

A C C O U N T A B I L I T I E S

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Project Team/Consultants • Develop new salary ranges and

assign jobs to new grades

• Determine impact of new salary

ranges on employee pay

• Develop career path descriptions

• Facilitate working sessions to validate

grade assignments and career path

descriptions

Managers • Participate in working sessions to

validate grade assignments and

career path descriptions

Phase 4: Roles and Accountabilities

Advisory Group • Provide feedback on salary range

structure, grade assignments and

validate career path descriptions

HR Staff • Participate in working sessions to

validate grade assignments and

career path descriptions

• Keep managers and employees

informed of initiative

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• Salary Structure

• Salary ranges based on market

data collected for Stanford job

matches to similar jobs in salary

surveys in Phase 3

• Each job assigned to salary grade

with midpoint that is closest to

market rate

• Grade Levels

• Determined centrally for each

Stanford job based on market data

Example – New Salary Structure and Grade Levels

Salary Structure (Illustration Only)

Grade Minimum

$

Midpoint

$

Maximum

$

12 177,000 239,000 301,000

11 151,000 196,000 242,000

10 125,000 163,000 200,000

9 105,000 136,000 168,000

8 87,000 113,000 139,000

7 74,000 94,000 115,000

6 63,000 80,000 98,000

5 54,000 68,000 81,000

4 47,000 59,000 71,000

3 41,000 51,000 62,000

2 35,000 44,000 53,000

1 30,000 38,000 45,000

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• Each job assigned to salary

grade with midpoint that is

closest to market rate

(Illustration Only)

Salary Structure (Illustration Only)

Grade Minimum

$

Midpoint

$

Maximum

$

12 177,000 239,000 301,000

11 151,000 196,000 242,000

10 125,000 163,000 200,000

9 105,000 136,000 168,000

8 87,000 113,000 139,000

7 74,000 94,000 115,000

6 63,000 80,000 98,000

5 54,000 68,000 81,000

4 47,000 59,000 71,000

3 41,000 51,000 62,000

2 35,000 44,000 53,000

1 30,000 38,000 45,000

Example – Assigning Grades to Jobs Based on Midpoints

Travel Agent 3

Market Rate = $90,000

Salary Grade = 7

Travel Agent 2

Market Rate = $60,000

Salary Grade = 4

Travel Agent 1

Market Rate = $46,000

Salary Grade = 2

Phase 5

Prepare to Implement

Nov 2013 – Feb 2014

R O L E S

A C C O U N T A B I L I T I E S

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Project Team/Consultants • Develop and finalize pay

administration guidelines,

implementation plan, and rollout

materials

• Partner with HR Staff to deliver

rollout materials to employees and

managers

• Update HRIS to reflect new job

codes, grades, and salary ranges

Managers

• Participate in focus groups to review

program guidelines and communication

materials

• Partner with HR Staff to deliver

communications to employees

• Provide employees with new job

descriptions and job grades

Phase 5: Roles and Accountabilities

Advisory Group • Give advice on draft pay

administration guidelines and

rollout materials

• Validate implementation plan

HR Staff

• Participate in focus groups to review

program guidelines and communication

materials

• Deliver communications/training to

managers and employees

• Keep managers and employees informed

of initiative