JOB EVALUATION & SALARY STRUCTURE DESIGNSeminar Speaker & Facilitator: RAFAEL Z. PERFECTO, F.P.M.

EFFECTIVE SALARY ADMINISTRATION

OBJECTIVES OF JOB EVALUATION

JOB ANALYSISMethods of Job Analysis (Interview, Questionnaire, Observation)

Sources of Job Information (Primary, Secondary)

Job Data Analysis (What, How, Where, How often)

JOB DESCRIPTIONSWhat is a job description?

Uses of Job Descriptions

Steps in developing job descriptions

Steps in Developing Job DescriptionsConduct job analysisIdentify position title and reporting relationships based on Organization ChartDefine job objectivesList down duties and responsibilitiesList down minimum and preferred qualifications of the jobSubmit job description for approval

Job Description FormatPosition Title:Department/Section/Unit:Reports to:Supervises:Job Summary:Duties & Responsibilities:Job Specifications: (qualification requirements)

WORDS TO AVOIDPerformsEnsuresAssistsCoordinatesPreparesLiaisesMonitorsEntertains

WORDS TO AVOIDImplementsFacilitatesMaintains

ENSURING FAIRNESS & OBJECTIVITY IN THE RATING PROCESS Select Job Factors that are important to your company Identify credible members for your Job Evaluation Committee Consider using the Point Rating System A third party or consultant can improve the credibility of the program

ENSURING FAIRNESS & OBJECTIVITY IN THE RATING PROCESS Select Job Factors that are important to your company Appoint a Job Evaluation Committee Use a third party or consultant Use the Point Rating System

JOB FACTORS

Note: Each factor is assigned percentage weights depending on which factors management wishes to give greater weight or importance.

FUNCTIONS: Establishing and recommending the job rating planJob clarificationDiscussion & deliberationObjective rating

WAGE DISTORTIONA situation where an increase in the prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation

SALARY MARKET DATARationale for conducting salary surveys

Selecting companies to be surveyed:GeographyIndustrySizeCombinationCompetition (for good people)

Sources of Salary DataOwn SurveyJoint Survey (groups or associations)Off-the-shelf or third party surveysCustomized third party surveys

SALARY STRUCTURE DESIGN Conduct or participate in a salary survey. Depending on company philosophy or direction, the structure is based on the survey average, median, or higher survey results. Each job grade is assigned a Salary Range A salary structure is composed of several salary ranges. Each salary range has a minimum rate, a mid-point rate, and a maximum rate.

Analyzing Market DataAnalyze your company data versus survey average or medianIndicate variances in percentageDraw a Salary Survey Chart showing:Survey LowSurvey HighSurvey MedianSurvey AverageYour Company Actual Average

Basic Rules in Designing a Salary StructureCompute the Hiring Rate of Job Grade One. (Should not be lower than prevailing minimum wage law)Decide on the Salary Range Spread of 50% or 60%. (Multiply Hiring Rate x 1.5 for 50% or 1.6 for 60% to get Max Rate)Compute Mid-Point Rate for JG-1 by adding Hiring Rate & Maximum Rate divided by 2.

Basic Rules in Designing a Salary StructureClosely observe the variances between your actual average and survey average per job grade, from the lowest to the highest job grade.% Interval between job grades should be the same or higher (never lower).Decide appropriate % interval to bring your proposed Mid-Point Rate close to the market average.

TYPES OF SALARY INCREASESMerit Increase (based on performance)Promotion IncreaseSkill or Competency IncreaseSalary Adjustment: JE implementation, JE reclassificationGeneral Increase or across-the-board