Hay Group －－ Job evaluation

nullnullJob Evaluation Old, Bold or a Story UntoldMarcus Downing Hay Group ContentContentWhat is Job Evaluation? Job Evaluation Processes and Guidelines Job Evaluation and Pay Setting Reward Structures Using Job Evaluation Job Evaluation and Salary Management Job Evaluation Benefits Job Evaluation Risks and Considerations nullWhat is Job Evaluation?What is Job Evaluation?What is Job Evaluation?Job Evaluation is a systematic process for ranking or rating jobs logically and fairly by comparing job against job or against a pre-determined scale to determine the relative importance of jobs to an organisation. Which is to say that Job Evaluation … …IS Comparative Judgemental Structured Job CentredIS Not Absolute Scientific Unstructured Person FocusedPossible Applications for Job Evaluation Possible Applications for Job Evaluation JOB EVALUATIONRewardOrganisational AnalysisGradingCareer DevelopmentSuccession PlanningIdentifying ‘gaps’ in the structureUnderstand relationships between rolesLink to market dataUnderstanding possible career pathsUnderpin the frameworknullnullJob RankingnullJob RankingnullnullElements of SizingElements of SizingDepth & Range of Know-How Planning & Organising Communicating & InfluencingFreedom to Act Nature of Impact Area of Impact (Magnitude)Thinking Environment Thinking ChallengePROBLEM SOLVINGKNOW-HOWACCOUNTABILITY++=TOTAL SIZEnullnull15. Emotional effort2. Knowledge, training & experience3. Analytical skills4. Planning and organisation skills5. Physical skills6. Responsibility – Patient/client care7. Responsibility – Policy and service8. Responsibility – Financial and physical9. Responsibility – Staff/HR leadership, training10. Responsibility – Information resources 11. Responsibility – R&D 12. Freedom to act13. Physical effort 14. Mental effort1. Communication & relationship skills16. Working conditionsnullJob ClassificationJob ClassificationSlot jobs into grades by comparing whole job with a scale in the form of a hierarchy of grade definitions The Process Number and characteristics of grades are defined Grade definitions to include factors like skills, experience, accountability Usually only a few grades (differentiation a problem if too many)nullJob Evaluation Processes and GuidelinesGuidelines in Job EvaluationGuidelines in Job EvaluationThe job as it is nowGuidelines in Job EvaluationGuidelines in Job EvaluationThe job as it is nowFully acceptable PerformancenullGuidelines in Job EvaluationGuidelines in Job EvaluationThe job as it is nowFully acceptable PerformanceThe Job & NOT the PersonGuidelines in Job EvaluationGuidelines in Job EvaluationThe job as it is nowFully acceptable PerformanceThe Job & NOT the PersonAim for ConsensusnullGuidelines in Job EvaluationGuidelines in Job EvaluationThe job as it is nowDisregard current pay & statusFully acceptable PerformanceThe Job & NOT the PersonAim for ConsensusGuidelines in Job EvaluationGuidelines in Job EvaluationThe job as it is nowDisregard current pay & statusFully acceptable PerformanceThe Job & NOT the PersonNo understanding No EvaluationAim for ConsensusJobs Exist In A ContextJobs Exist In A ContextChanges to one job affect those around them jobs are intimately related to those around themnullJob Family Evaluation Process Review Business InformationEvaluation Method Job InformationJudgement Record of Reasons Apply Conclusions Business InputnullJob Evaluation and PaynullThe All–Time Enemy of Job Evaluation…….. Some factors influencing pay Some factors influencing pay PayProfit ShareDept. PerformanceCompany PerformanceLength of serviceMarket PositioningIndividual PerformanceMarket ComparisonInternal relativityPay “heritage”Job sizenullSetting Reward Structures Using JEnullJOB ANALYSIS Job DescriptionsJOB EVALUATION Process Methodology ResultsREWARD STRUCTURE Number Width PositioningPAY STRUCTURE Policy Practice RangesPAY PROGRESSION Market Positioning Corporate Performance Individual PerformanceSetting Up Reward Structures for Base PayJob FamiliesJob FamiliesA job family describes a number of roles which are engaged in a similar or related kind of work. Job family modelling is a process of work analysis and definition which identifies the levels within a family, and defines accountabilities, performance measures and skills for each level of work. A completed job family considers how many levels of that type of work there are and describes the key factors which differentiate one level from the next. Using Job Evaluation to Size Job FamiliesUsing Job Evaluation to Size Job FamiliesEvaluation Scores Job Family Generic Level A Generic Level B Generic Level C Generic Level D Generic Level EJob Family Levels Accountabilities ……………. ……………. …………….Knowledge & Skills ……………. ……………. …………….Performance Criteria ……………. ……………. …………….Using Job Evaluation to Size Job Families Using Job Evaluation to Size Job Families Levels Defined Using Chosen Evaluation Methodology JFM 1JFM 2JFM 3 JFM 4 Using Job Evaluation to Set Grading StructuresUsing Job Evaluation to Set Grading Structures Finance & ITUsing Job Evaluation to Set Grading StructuresUsing Job Evaluation to Set Grading Structures Finance & ITUsing Job Evaluation to Set Grading StructuresUsing Job Evaluation to Set Grading Structures Finance & ITnullUsing Job Evaluation For Salary ManagementnullnullJE BenefitsPossible BenefitsPossible BenefitsA structured framework for pay and grading Greater clarity and transparency for employees Identify and tackle anomalies Improved fairness and better equal value protection Access to market data to inform cost effective decisions on pay Possible Benefits (2)Possible Benefits (2)Sensitive in measuring job differences Enables comparison of dissimilar jobs Enables benchmarking against jobs outside the organisation as well as reflecting hierarchies internally Is able to reflect jobs as they change with time Help to improve recruitment and retention for targeted areas within your business Provide clear development pathways for your employees nullJE Risks and ConsiderationsPossible RisksPossible Risks Fears that salary costs will rise Administrative/process costs rise There is no fit with the strategic agenda There are no positive benefits for stakeholders The organisation takes on too muchImplementation ConsiderationsImplementation Considerationsthe need for and possible problems in getting union involvement the need for and problems in getting wider business involvement the need to have appeals processes which do provide a safety valve but don't take up a lot of time the critical nature of communications to success Implementation Considerations (cont…)Implementation Considerations (cont…)the requirement to look closely at the new pay policy: what to pay for; the role of increments and the basis for progression etc the difficulties of getting managers to buy in to a new way of working, and of raising their capability to deal with pay and performance processes the fact that all this attention to grading and pay will raise expectations, and so the big risk is that change leaves large numbers disappointed. nullQuestionsContact/Presentation detailsContact/Presentation details Marcus Downing Hay Group Ltd 0788 411 0669 0207 856 7027 Marcus_Downing@Haygroup.com http://www.haygroup.co.uk/Events/Events.asp