Job Structures
Job descriptions can be used to group jobs with similar responsibilities and rank them in order of hierarchy. Job structures allow similar jobs to be linked by level of responsibility and job duties to create an internal consistent pay structure.
Job Descriptions
Benefits Manager:
• Must comply with all reporting requirements of all relevant government rules and regulations, including the Employee Retirement Income Security Act (ERISA); must be able to design and/or modify our benefit policies so that our benefits packages are current, competitive, and in compliance with legal requirements for the State of MD; must analyze compensation policies, MD government regulations, and prevailing wage rates in Rockville, MD so that a competitive compensation package can be developed;
• Must administer, direct, and review employee benefit programs and formulate policies, procedures and programs for recruitment, testing, placement, classification, orientation, benefits and compensation, and labor and industrial relations; must be highly skilled in the use of Microsoft Office Suite, including Access, Powerpoint and Visio; Adobe Illustrator or Photoshop; ADP Workforce, HRIS and HRMS; must have knowledge of business and management principles, resource allocation, leadership technique, production methods, and coordination of people and resources;
• Must be able to give full attention to employees when needed and take the time to understand the points being made, asking questions as appropriate, convey information effectively; use logic and reasoning to identify the strengths and weaknesses of alternative solutions and have solid decision-making skills;
• Must have Bachelor’s Degree and experience in Human Resources Management.
Production Worker:
• Must be able to cut out rubber mats, following patterns or outlines, using knives, shears, scissors, or machine presses; construct rubber mats according to company specifications and design, using sewing machines, needles and thread, rubber lacing, glue, clamps, hand tools, or rivets;
• Must be able to align and stitch or glue materials to join parts; dye, paint, stamp, stitch, stain or engrave rubber to obtain desired effects, decorations, or shapes; must be able to select materials and patterns, and trace patterns onto materials to be cut out; must be able to make precise assembly of product and have the ability to quickly and repeatedly adjust the controls of a machine or a vehicle to exact positions; must be able to handle, install and trim excess materials from workpieces;
• Must have high school diploma or equivalent and experience in manufacturing.
Job Evaluation Points
Administrative Assistant
Compensation Factor Weight Degree (1,2,3,4) Points
Skill (50%)
Education Level 25% 1 25
Technical Skills 25% 1 25
Responsibility (30%)
Scope of Control 10% 2 25
Impact of Job 10% 2 45
Effort (20%)
Problem Solving 15% 2 15
Task Complexity 15% 2 15
100% 150 points
Operations Analyst
Compensation Factor Weight Degree (1,2,3,4) Points
Skill (50%)
Education Level 25% 4 25
Technical Skills 15% 3 25
Responsibility (30%)
Scope of Control 10% 2 15
Impact of Job 15% 3 35
Effort (20%)
Problem Solving 10% 3 25
Task Complexity 25% 2 25
100% 150 points
Production Worker
Compensation Factor Weight Degree (1,2,3,4) Points
Skill (50%)
Education Level 10% 1 25
Technical Skills 10% 1 20
Responsibility (30%)
Scope of Control 10% 2 25
Impact of Job 25% 2 20
Effort (20%)
Problem Solving 15% 2 30
Task Complexity 30% 2 30
100% 150 points
Benefits Manager
Compensation Factor Weight Degree (1,2,3,4) Points
Skill (50%)
Education Level 30% 4 35
Technical Skills 10% 2 20
Responsibility (30%)
Scope of Control 10% 2 15
Impact of Job 20% 3 35
Effort (20%)
Problem Solving 15% 3 30
Task Complexity 15% 3 20
100% 155 points
Job Families
• Director of Regional Operations Family
• Chief Operations Officer
• Chief Financial Officer
• Assistant to the Director Operations Family
• General Manager
• Operations Manager
• Operations Analyst Family
• Data Analyst
• Data Analyst Manager
• HR Director Family
• Benefits Manager
• Talent Acquisition
• HR Administrative Assistant Family
• Executive Assistant
• Executive Secretary
• Benefits Manager Family
• Compensation Specialist
• Human Resources Specialist
• Lead Production Worker Family
• Production Workers Helpers
• Team Assemblers
• Production Worker Family
• General Manager
• Operations Manager
• Production Manager Family
• First Line Supervisor
• Operating Workers
• HR Generalist Family
• HR Manager
• HR Specialist
• Front Desk Receptionist Family
• Administrative Assistant
• Office Clerk
Internal Consistency
Job Descriptions
Job analysis is essential to many HR activities, notably pay. It is the systematic method of gathering information for a given task and offers information needed to characterize that job. A work description is a summary of the main characteristics of a task. We need to understand what activities, responsibilities and obligations different occupations include before we are able to give fair and competitive salary rates. The description of the work begins with job analysis. Sometimes information from other job descriptions, like prior business descriptions or O*NET, should be gathered (an online job analysis resource developed by the Department of Labor). The Module Three’s Reading and Resources page has a link to O*NET. A job description of a firm should be customized, job-specific and company-specific. Job descriptions differ by company, but generally contain the job title, a work overview, key job duties, knowledge and abilities that an incumbent must have. A well-written, comprehensive job description provides the basis for any compatible internal pay scheme. A benchmark work is used as a point of reference for comparing compensation. They usually have steady, mostly acceptable roles with compensation rates.
Job Evaluation
The systematic method to help determine wage differentials across occupations inside a company is a job assessment. The first stage is for compensatory factors to be identified. The effort that the company appreciates is a compensable element. It is used to assess the relative value of a company’s jobs. Every compensable element must also be given a proportionate weight depending on its relevance to the organization. Please note that all compensable additional elements must be 100%. Education might be an example of a compensatory factor. This might be 25% for the firm. There are several levels of difficulty for each compensable element. This is known as grades. For instance, education degrees can be identified as:
4 = Master’s/Graduate
3 = Bachelor’s
2 = Associate’s
1 = High School/GED
To obtain the points, the degrees are multiplied by the given rates.
The weight of the skill compensable factor (divided into education level and technical skills) is at 50% since the organization is very knowledge-intensive and depends heavily on its human capital; responsibility (distributed into scope of control and impact of job) is weighted 30% as each job has the potential to affect other jobs; and effort is assigned 20% since problem-solving and task complexity are essential across jobs in the organization. Using the job description as a reference, the degrees for the front desk receptionist position need to be assigned. Education degree 1 is suitable because a high school diploma or GED is sufficient; technical skills graduate 1 is suitable as this job handles basic telephone and email only; control degree 1 is sufficient also because it has little control; it has an impact of a 2 degree since it welcomes everyone entering the company; etc. Finally, for each compensable fact, multiply weight by degree. Add the total points of every compensable element to the receptionist position for your overall job assessment score.
Job Families
A family of employees is a collection of occupations of the same kind that requires varying degrees of expertise and responsibility (Gerhart & Newman, 2020). Similar jobs provide the foundation for the corresponding comparisons. These groups lead to fair variations in compensation across roles, rational career patch, and consistent internal working arrangements. For distinct job families in the same company, organizations may employ different methods of assessment, compensation strategies, or pay structures. The following is an example of a financial company’s two work families. Note: This is not the case study example. Job families example include accounting family that comprises of senior and staff accountant. Also, the investment family includes investments account manager and investment analyst.
Accounting family Staff accountant Senior accountant
Investment family Investment analyst Investment accounts manager
Table 2
The roles sought for the new facility in Rockville belong to several job families, including production, office support and human resources..
External Competitiveness
Weighted Means
The initial stage in the analysis of payroll data is to create the weighted means for every reference job. Weighted means are derived to better reflect market data in comparison to basic means. The average base payout rate and the number of organisations, although for small and large firms both the same weight would be assigned if a simple average were used, would be a simple average. A simple average. A weighted medium provides equal weight to the wages of each employee, and so is more reflective of the data. Below is an example of how a weighted mean can be calculated. Sample data from two company surveys are used in this example. The statistics utilized in this case study are not based on the data.
weighted mean is given by Simple mean = average base / number of companies
(21,000 + 22,000) / 2 = 21,500
Weighted mean = equal weight to each job incumbent’s wage
(1/3 x 21,000) + (2/3 x 22000) = 21,666
Predicted Market Pay Rate
The next goal is to regress using Microsoft Excel in a simple way. This allows us to compute the basic pay forecast and build a pay line on the market that allows a company to understand market data as useful information. Create an Excel table for each job reference job with a column for Milestone One — Internal Consistency: Job assessment and a column for Milestone Two’s weighted average base pay rate — external competitiveness: weighted means. Next, provide the results of regression. The following steps are taken to basic regression with a sample dataset in Excel. Note: in this case study, the numbers utilized are not from the data.
You will receive a R square in the output. This figure indicates the variance of the data. The R Square shows us how much the back-up line fits the data. This is 0.95 or above. If your number is low, you should look for any anomalies or inconsistencies in your data (i.e. job evaluation points). Fix any mistakes and, if necessary, resume your regression. Identify the path and y-intercept with the regression output. For each benchmark job, calculate the projected market salary rate using the y = a + b (x)
With that information, it is possible to calculate the predicted base pay for each of the following benchmark jobs: administrative assistant, payroll assistant, operations analyst, production worker, and benefits manager.
Market Pay Line
Now that our market pay rate is projected, we must set up a pay line for the market. A pay line connects the benchmarks of a company’s job assessment points with competition market rates. We can achieve this by establishing our anticipated wages in keeping with the trend. First, position the roles on the basis of job assessments to the smallest to greatest. Then build the Excel chart, which lines the horizontal axis and the vertical axis of your wage evaluation points. That should be a gradual slope. Below is an example of a sample data set market line in Excel. Note: in this case study, the numbers utilized are not from the data.
Adjusted Pay Rates
With our anticipated salary and pay line in the market, we now need to modify this depending on the lead pay strategy of the business. This is our line of pay. Because the company wishes to manage the market 3% over operations, assistance from offices and HR employees, the market pay line needs to be adjusted correspondingly. In other words, a new basic pay rate that is 3 percent higher than the market may be multiplied by 1.03 for each expected pay rate. Below is an example of an adjusted 3 percent pay rate based on the example of the prior market. Note: in this case study, the numbers utilized are not from the data.
Pay Grades
We may build pay rates for our pay structure after the pay rates are set. Pay grades identify work groups equivalent for pay considerations (Gerhart & Newman, 2020). They have the same worth for the company. All occupations with a salary rating have the same range of pay (minimum and maximum pay rates). Consider the administrative assistant, operating analyst, production worker and advantages manager for the following benchmarks. Determine whether ones for compensation reasons are sufficiently comparable.
For each position in the salary grade, pay ranges provide upper and lower pay rates. These are the limitations that the employer pays for a given employment. A minimum and maximum pay rate will be applied to each pay grade. The percentage criteria are used to calculate how much the pay range above and below the midpoint. The maximum might be 10% above midway, for example, and the minimum could also be 10% below midpoint.
Pay mix
The pay mix is the set pay ratio in remuneration of a seller for variable pay. The amount of total target compensation (TTC), with the first figure indicating base pay and the second the target incentive amount, is represented as a percentage divide.
References
Build your future with O*NET OnLine. (n.d.). Retrieved May 23, 2021, from https://www.onetonline.