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

2. EFFECTIVE SALARY ADMINISTRATION
Internal Job Value -
Job Evaluation
External Job Value -
Salary Survey/Design
Pay for Performance -
Performance Appraisal

3. OBJECTIVES OF JOB EVALUATION
To Measure the value of jobs within the company
To attract and retain highly-motivated and well- qualified employees

4. PERFORMANCE APPRAISAL
JOB EVALUATION
A systematic process of measuring the relative value of jobs within the organization for the purpose of administering compensation in a rational way.
PERFORMANCE APPRAISAL
An objective process of measuring the performance (quantity & quality of output) of an employee for the purpose of motivation, performance improvement, and reward.

5. JOB ANALYSIS
Methods of Job Analysis (Interview, Questionnaire, Observation)
Sources of Job Information (Primary, Secondary)
Job Data Analysis (What, How, Where, How often)

6. JOB DESCRIPTIONS What is a job description? Uses of Job Descriptions
Steps in developing job descriptions

7. Steps in Developing Job Descriptions
Conduct job analysis
Identify position title and reporting relationships based on Organization Chart
Define job objectives
List down duties and responsibilities
List down minimum and preferred qualifications of the job
Submit job description for approval

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

9. WORDS TO AVOID Performs Ensures Assists Coordinates Prepares Liaises
Monitors
Entertains

10. WORDS TO AVOID
Implements
Facilitates
Maintains

11. 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

12. 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

13. JOB FACTORS Relevant work experience Education Accountability
Human Relations Skill
Analysis & Decision Making
Working conditions (Hazards & Physical demands)
Supervision

14. JOB RATING PLAN
The measuring device used to rate jobs. It defines the individual job factors and their corresponding degrees.
Note:
Each factor is assigned percentage weights depending on which factors management wishes to give greater weight or importance.

15. JOB EVALUATION COMMITTEE
A group of five (5) to nine (9) managers of the company, representing the different departments/divisions, who will be responsible for rating the different jobs.
FUNCTIONS:
Establishing and recommending the job rating plan
Job clarification
Discussion & deliberation
Objective rating

16. WAGE DISTORTION
“A 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”

17. SALARY MARKET DATA Rationale for conducting salary surveys
Selecting companies to be surveyed:
Geography
Industry
Size
Combination
Competition (for good people)

18. Sources of Salary Data Own Survey
Joint Survey (groups or associations)
“Off-the-shelf” or third party surveys
Customized third party surveys

19. 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.

20. Analyzing Market Data
Analyze your company data versus survey average or median
Indicate variances in percentage
Draw a Salary Survey Chart showing:
Survey Low
Survey High
Survey Median
Survey Average
Your Company Actual Average

21. Basic Rules in Designing a Salary Structure
Compute 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.

22. Basic Rules in Designing a Salary Structure
Closely 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.

23. TYPES OF SALARY INCREASES
Merit Increase (based on performance)
Promotion Increase
Skill or Competency Increase
Salary Adjustment: JE implementation, JE reclassification
General Increase or “across-the-board”

24. “Excellence in People Development.”
FOR YOUR TRAINING NEEDS.
“Excellence in People Development.”
TEL: (02) ;
FAX: