A Human Resource Management Approach

STRATEGIC COMPENSATION

Prepared by David OakesChapter 7Building Internally Consistent Compensation Systems

Internal Consistency Compares value of a job against others Represents job structure or hierarchy Job descriptions are its cornerstone Recognizes differences in job characteristics

Job Structure Processes Job analysis A descriptive procedure Identifies & defines job content Job evaluation Reflects value judgments Compensation systems set pay levels

Worker Requirements Skills Education Experience Licenses Permits Special abilities

Job Analysis Process Determine job analysis program Select & train analysts Direct job analyst orientation Conduct the study Summarize results: write job descriptions

Job Analysis Data Gathering Methods Questionnaires Interviews Observation Participation

JOB ANALYSIS UNITS Elements Tasks Position Job Job family Occupation

S O C Standard Occupational Classification System Office of Management and Budget Replaces DOT Lists 23 Occupational Groups, 98 Minor Groups 452 Broad occupations 822 Detailed occupations

Sources Job incumbents

Supervisors

Job analysts

Writing Job Descriptions Should Include Job title Job summary Job duties Worker specifications

Legal Considerations Equal Pay Act Must justify pay differences FLSA Determine exemption status ADA Determine essential job functions

ADA GuidelinesEssential Job Functions Position has an essential function Requires high skills or expertise Decided case - by - case Non - essential jobs are marginal

O*NET Categories Experience requirements Occupational requirements Occupation specific requirements Worker requirements Worker characteristics Labor market characteristics

ExperienceRequirements Experience & training Related work experience On - site training On - the - job training Apprenticeships Licensing Licenses & certificates Formal education

Occupation Requirements Occupational skills Occupational knowledge Tasks Duties Machines Tools Equipment

Worker Requirements Basic skills Cross - functional skills Knowledge Education

O*NET Sources Libraries, public & academic U.S. Government Printing Office http://www.doleta.gov American Psychological Assoc An Occupational Information System for the 21st Century: The Development of O*NET

Universal Compensable Factors Skill Effort Responsibility Working conditions

Job Evaluation Process Steps Select technique Choose committee Train members to evaluate Document plan Communicate with employees Set-up appeals process

Point Method Steps Select benchmark jobs Choose compensable factors Define factor degrees Determine weight of factors Determine point value Verify factor degrees & point values Evaluate all jobs

Job Evaluation Qualitative Approaches Simple ranking plan Paired comparisons Alternation ranking Classification plans

Alternatives To Job Evaluations Market pay rates Pay incentives Individual rates Collective bargaining