As mentioned when we discussed internal and external factors, the value of the job is a major factor when determining pay. There are several ways to determine the value of a job through job evaluation. Job evaluation is defined as the process of determining the relative worth of jobs to determine pay structure. Job evaluation can help us determine if pay is equitable and fair among our employees. There are several ways to perform a job evaluation. One of the simplest methods, used by smaller companies or within individual departments, is a job ranking system. In this type of evaluation, job titles are listed and ranked in order of importance to the organization. Apaired comparison can also occur, in which individual jobs are compared with every other job, based on a ranking system, and an overall score is given for each job, determining the highest-valued job to the lowest-valued job. For example, in Table 6.1 "Example of a Paired Comparison for a Job Evaluation", four jobs are compared based on a ranking of 0, 1, or 2. Zero indicates the job is less important than the one being compared, 1 means the job is about the same, and 2 means the job is more important. When the scores are added up, it is a quick way to see which jobs are of more importance to the organization. Of course, any person creating these rankings should be familiar with the duties of all the jobs. While this method may provide reasonably good results because of its simplicity, it doesn’t compare differences between jobs, which may have received the same rank of importance.
Job |
Receptionist |
Project Manager |
Account Manager |
Sales |
Director |
---|---|---|---|---|---|
Receptionist |
X |
0 |
0 |
0 |
0 = 4th |
Project Administrative Assistant |
1 |
X |
0 |
0 |
1 = 3rd |
Account Manager |
2 |
1 |
X |
0 |
3 = 2nd |
Sales Director |
2 |
2 |
2 |
X |
6 = 1st |
Based on the paired ranking system, the sales director should have a higher salary than the project administrative assistant, because the ranking for that job is higher. Likewise, a receptionist should be paid less than the project administrative assistant because this job ranks lower. |
In a job classification system, every job is classified and grouped based on the knowledge and skills required for the job, years of experience, and amount of authority for that job. The US military is perhaps the best known for this type of classification system. The navy, for example, has job classification codes, such as HM (hospitalman). Then the jobs are divided into specialties, such as HM-8483, the classification for surgical technologist, and HM-8451 for a hospitalman-X-ray technician. The federal government and most state governments use this type of system. Tied to each job are the basic function, characteristics, and typical work of that job classification, along with pay range data. A sample of a job classification system is shown in Table 6.2 "Example of a Job Classification System at the University of Washington".
Job Code |
Job Title |
State Job Class Code Reference |
Representative Group |
Pay Table |
Pay Range |
Minimum Mo. Rate |
Maximum Mo. Incremental Rate |
OT Eligible |
---|---|---|---|---|---|---|---|---|
7715 |
ACCELERATOR TECHNICIAN 1 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
40 |
$2689 |
$3583 |
Y |
|
7300 |
ACCOUNTANT 1 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
40 |
$2689 |
$3583 |
Y |
|
7301 |
ACCOUNTANT 2 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
44 |
$2949 |
$3956 |
N |
|
7302 |
ACCOUNTANT, SENIOR |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
50 |
$3410 |
$4587 |
N |
|
7011 |
ACCOUNTING SUPERVISOR |
SEIU Local 925 Clerical Supervisory |
B4 |
50 |
$3410 |
$4587 |
N |
|
7045 |
ADMINISTRATIVE ASSISTANT A |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
39 |
$2623 |
$3493 |
Y |
|
7044 |
ADMINISTRATIVE ASSISTANT A-SUPV |
SEIU Local 925 Clerical Supervisory |
B4 |
41 |
$2751 |
$3667 |
Y |
|
7046 |
ADMINISTRATIVE ASSISTANT B |
SEIU Local 925 Clerical Supervisory |
B4 |
42 |
$2816 |
$3763 |
Y |
|
7080 |
ADMINISTRATIVE COORDINATOR |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
37 |
$2506 |
$3325 |
Y |
|
7490 |
ADMISSIONS SPECIALIST |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
41 |
$2751 |
$3667 |
Y |
|
7583 |
AFFIRMATIVE ACTION/HUMAN RIGHTS ASST |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
41 |
$2751 |
$3667 |
Y |
|
8696 |
ALCOHOLISM THERAPIST 1 |
WFSE HMC |
B0 |
56 |
$3507 |
$5021 |
Y |
|
6119 |
ALCOHOLISM THERAPIST 2 |
359F |
Classified Non-Union |
C0 |
63 |
$3761 |
$5224 |
Y |
6329 |
ANATOMIC PATHOLOGY LABORATORY LEAD |
315H |
Classified Non-Union |
C0 |
73 |
$4154 |
$5771 |
Y |
6328 |
ANATOMIC PATHOLOGY LABORATORY SUPERVISOR |
315I |
Classified Non-Union |
C0 |
79 |
$4412 |
$6126 |
N |
8146 |
ANATOMIC PATHOLOGY TECHNICIAN |
SEIU Local 925-HMC Technical |
B7 |
55 |
$3472 |
$4822 |
Y |
|
8326 |
ANATOMIC PATHOLOGY TECHNICIAN |
SEIU LOCAL 925 Medical/Laboratory Tech |
B7 |
55 |
$3472 |
$4822 |
Y |
|
8145 |
ANATOMIC PATHOLOGY TECHNICIAN TRAINEE |
SEIU Local 925-HMC Technical |
B7 |
40 |
$2991 |
$4155 |
Y |
|
8325 |
ANATOMIC PATHOLOGY TECHNICIAN TRAINEE |
SEIU LOCAL 925 Medical/Laboratory Tech |
B7 |
40 |
$2991 |
$4155 |
Y |
|
8147 |
ANATOMIC PATHOLOGY TECHNOLOGIST |
SEIU Local 925-HMC Technical |
B7 |
66 |
$3874 |
$5383 |
Y |
|
8327 |
ANATOMIC PATHOLOGY TECHNOLOGIST |
SEIU LOCAL 925 Medical/Laboratory Tech |
B7 |
66 |
$3874 |
$5383 |
Y |
|
6313 |
ANESTHESIOLOGY TECHNICAL SERVICES SUPV |
320H |
Classified Non-Union |
CA |
61 |
$3686 |
$5277 |
N |
6310 |
ANESTHESIOLOGY TECHNICIAN 1 |
320E |
Classified Non-Union |
CA |
13 |
$2287 |
$3271 |
Y |
8711 |
ANESTHESIOLOGY TECHNICIAN 1 |
WFSE HMC |
BA |
10 |
$2219 |
$3271 |
Y |
|
8312 |
ANESTHESIOLOGY TECHNICIAN 2 |
SEIU LOCAL 925 Medical/Laboratory Tech |
BS |
46 |
$3344 |
$4933 |
Y |
|
8960 |
ANESTHESIOLOGY TECHNICIAN 2 |
1199NW-HMC Respiratory/Anesthesiology |
BS |
46 |
$3344 |
$4933 |
Y |
|
6311 |
ANESTHESIOLOGY TECHNICIAN LEAD |
320G |
Classified Non-Union |
CA |
52 |
$3370 |
$4826 |
Y |
8959 |
ANESTHESIOLOGY TECHNICIAN LEAD |
1199NW-HMC Respiratory/Anesthesiology |
BS |
53 |
$3585 |
$5288 |
Y |
|
7724 |
ANIMAL TECHNICIAN 1 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
25 |
$1903 |
$2506 |
Y |
|
7725 |
ANIMAL TECHNICIAN 2 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
26 |
$1948 |
$2567 |
Y |
|
7726 |
ANIMAL TECHNICIAN 3 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
30 |
$2134 |
$2816 |
Y |
|
4727 |
ANIMAL TECHNICIAN SUPERVISOR |
525H |
Classified Non-Union |
C1 |
35 |
$2370 |
$3063 |
Y |
4658 |
ASSISTANT FACILITIES DESIGNER |
540L |
Classified Non-Union |
C1 |
48 |
$3213 |
$4214 |
Y |
8874 |
ASSISTANT STEAM ENGINEER |
WFSE Skilled Trades |
BL |
46G |
$3566 |
$4106 |
Y |
|
8507 |
BAKER |
WFSE Campuswide |
BI |
30 |
$2113 |
$2789 |
Y |
|
8508 |
BAKER LEAD |
WFSE Campuswide |
BI |
33 |
$2266 |
$2994 |
Y |
|
4700 |
BIOMEDICAL ELECTRONICS TECHNICIAN 1 |
511E |
Classified Non-Union |
CA |
54 |
$3438 |
$4924 |
Y |
4701 |
BIOMEDICAL ELECTRONICS TECHNICIAN 2 |
511F |
Classified Non-Union |
CA |
68 |
$3954 |
$5659 |
Y |
4702 |
BIOMEDICAL ELECTRONICS TECHNICIAN 3 |
511G |
Classified Non-Union |
CA |
78 |
$4368 |
$6249 |
Y |
4703 |
BIOMEDICAL ELECTRONICS TECHNICIAN LEAD |
511H |
Classified Non-Union |
CA |
83 |
$4591 |
$6568 |
Y |
4704 |
BIOMEDICAL ELECTRONICS TECHNICIAN SUPV |
511I |
Classified Non-Union |
CA |
88 |
$4826 |
$6903 |
N |
8875 |
BOILER OPERATOR |
WFSE Skilled Trades |
BL |
42G |
$3247 |
$3736 |
Y |
|
7613 |
BOOK PRODUCTION COORDINATOR |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
44 |
$2949 |
$3956 |
Y |
|
7075 |
BOOKKEEPING MACHINE OPERATOR |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
29 |
$2088 |
$2751 |
Y |
|
7550 |
BROADCAST TECHNICIAN 1 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
41 |
$2751 |
$3667 |
Y |
|
7551 |
BROADCAST TECHNICIAN 2 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
47 |
$3166 |
$4255 |
Y |
|
7552 |
BROADCAST TECHNICIAN 3 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
51 |
$3493 |
$4699 |
Y |
|
7553 |
BROADCAST TECHNICIAN SUPERVISOR |
SEIU Local 925 Clerical Supervisory |
B4 |
55 |
$3856 |
$5186 |
N |
|
7335 |
BUDGET ANALYST |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
42 |
$2816 |
$3763 |
Y |
|
7336 |
BUDGET/FISCAL ANALYST |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
46 |
$3093 |
$4154 |
N |
|
7337 |
BUDGET/FISCAL ANALYST LEAD |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
51 |
$3493 |
$4699 |
N |
|
7339 |
BUDGET/FISCAL OPERATIONS SUPERVISOR |
SEIU Local 925 Clerical Supervisory |
B4 |
57 |
$4053 |
$5448 |
N |
|
7338 |
BUDGET/FISCAL UNIT SUPERVISOR |
SEIU Local 925 Clerical Supervisory |
B4 |
54 |
$3763 |
$5059 |
N |
|
7021 |
BUILDING SERVICES COORDINATOR |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
33 |
$2289 |
$3023 |
Y |
|
7022 |
BUILDING SERVICES SUPERVISOR |
SEIU Local 925 Clerical Supervisory |
B4 |
38 |
$2567 |
$3410 |
Y |
|
5215 |
BUILDINGS AND GROUNDS SUPERVISOR A |
598G |
Classified Non-Union |
C1 |
49 |
$3293 |
$4322 |
N |
5216 |
BUILDINGS AND GROUNDS SUPERVISOR B |
598H |
Classified Non-Union |
C1 |
55 |
$3819 |
$5010 |
N |
7119 |
BUYER 1 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
38 |
$2567 |
$3410 |
Y |
|
7120 |
BUYER 2 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
44 |
$2949 |
$3956 |
Y |
|
7122 |
BUYER 3 |
SEIU Local 925 Clerical Nonsupervisory |
B4 |
49 |
$3325 |
$4472 |
N |
|
Source: Reprinted from The University of Washington website, Compensation: A Division of Human Resources,http://www.washington.edu/admin/hr/ocpsp/compensation/alpha.sort.files/alpha.sort.html (accessed September 14, 2011). |
Another type of job evaluation system is the point-factor system, which determines the value of a job by calculating the total points assigned to it. The points given to a specific job are called compensable factors. These can range from leadership ability to specific responsibilities and skills required for the job. Once the compensable factors are determined, each is given a weight compared to the importance of this skill or ability to the organization. When this system is applied to every job in the organization, expected compensable factors for each job are listed, along with corresponding points to determine which jobs have the most relative importance within the organization. Tompkins County in New York uses a point-factor system. Some of their compensable factors include the following:
- Knowledge
- Autonomy
- Supervision
- Psychological demands
- Interpersonal skills
- Internal and external contacts
In this point-factor system, autonomy ranks the highest and is given a weight of twenty-nine, while knowledge is given a rate of twenty, for example. Each of the compensable factors has a narrative that explains how points should be distributed for each factor. In this system, one hundred points are given for knowledge for a bachelor’s degree and two to three years of experience, and eighty points are given if an employee has an associate’s degree or high school diploma and two to three years of experience. The points are then multiplied by the weight (for knowledge, the weight is twenty) to give a final score on that compensable factor. After a score is developed for each, the employee is placed on the appropriate pay level for his or her score, as illustrated in Figure 6.3 "Example of a Point-Factor System".
Another option for job evaluation is called the Hay profile method. This proprietary job evaluation method focuses on three factors called know-how, problem solving, and accountability. Within these factors are specific statements such as “procedural proficiency.” Each of these statements is given a point value in each category of know-how, problem solving, and accountability. Then job descriptions are reviewed and assigned a set of statements that most accurately reflect the job. The point values for each of the statements are added for each job description, providing a quantitative basis for job evaluation and eventually, compensation. An advantage of this method is its quantitative nature, but a disadvantage is the expense of performing an elaborate job evaluation.
- 2241 reads