Classification and Compensation
Experience
The Center has worked with public sector entities of various size and jurisdiction in developing or updating their classification and compensation systems. The Center uses a methodology that complies with all regulatory guidelines as well as professional standards.
Our Approach
Two primary considerations drive any sound compensation study. First, it is important that within an organization that people – in this case identified by job classifications – are treated fairly. This is internal equity. In order to achieve internal equity, it is necessary that job classifications are studied in the context of all other job classifications within an organization. In a sense, a comparison of job classifications must take place. A job with more responsibility, necessitating more knowledge and skill, and requiring more experience and/or education should be in a higher pay grade than a job with less responsibility, requiring less education, experience, skills, and knowledge.
The other consideration is external equity, or the “market value” of jobs when compared to other jobs of similar content outside of an organization. External competitiveness is important in attracting and retaining qualified employees. In assessing external competitiveness, an organization must first determine what other relevant employers are paying their employees for similar work, level of responsibility, etc., and then decide how they wish to respond to these external market prices. With regard to external equity, the Center will guide an organization in determining how competitive it wants to be in paying its employees with regard to the relevant labor market. In this way, an organization develops a compensation philosophy, or a strategy related to pay.
Methodology
Job Analysis
The first step when working on a classification and compensation system is to conduct job analyses for all positions currently in the system. The Center=s Comprehensive Job Analysis methodology has been designed and used by the Center to conform to both legal and professional standards in describing the work performed by incumbents and in demonstrating the validity of various personnel procedures (e.g., selection tests, performance appraisal systems, wage and classification studies).
Collection of Background Information
This involves activities associated with the collection and review of information about the job classifications under study as well as the current classification system as a whole. The purpose of this step is to familiarize the consultant with the jobs under review. Center staff review current job descriptions and all relevant information regarding the organization’s current classification system (e.g., current pay ranges, organizational charts, relevant policies and procedure manuals, etc.).
Job Interviews
Following the background information review, job interviews are conducted with current incumbents from every job classification currently in use in order to collect detailed information about a) work behaviors and tasks, b) knowledge, skills, and abilities (KSAs), c) distinguishing characteristics of the job, d)supervision received and exercised, e) essential and marginal functions (including physical demands) in keeping with ADA, f) minimum experience and education requirements, and g) any special requirements such as certification or licensing.
During the interviews, the job content domains are developed and defined by job incumbents. At the conclusion of the job interviews, Center staff members refine the representation of the job content domain as needed to clarify the job analysis interview output. Depending on the outcome of the interviews, questionnaires may be administered to incumbents in order to gain more specific information on job tasks and responsibilities as well as obtain ratings on job responsibilities including the importance and frequency.
Evaluation Plan
Position Description - Using the job content domain identified through the job analyses as well as the results from the review of current job descriptions, the Center review and update job descriptions for the existing positions within the organization. The Center also make recommendations for additions and/or deletions to the current classification plan, as well as create any new position descriptions deemed necessary and appropriate. Center staff will work closely with your organization’s Human Resources personnel and supervisors to document discrepancies and/or concerns with the existing job descriptions. Comparisons are made, changes implemented, and descriptions updated.
Position Evaluation - Duties and responsibilities are measured for each position. This step ensures that Center staff members understand the range of responsibilities for each position. Center staff group positions of similar responsibility into pay grades. The Center then, through the use of salary surveys and/or available classification/compensation software, develop salary ranges for each pay grade. Every attempt is made to obtain current salary information for each job within a pay grade. If salary information is not available for each job due to the specific nature of the job, the Center ensures that salary information is obtained for appropriate benchmark jobs (i.e., those that contain the full range of duties/ responsibilities, skill, and effort levels which are representative of all jobs within a particular pay grade).
Implementation
The Center meets with appropriate staff from the organization to compare the existing grades and make recommendations based on the current evaluation. The Center works closely with the organization to ensure employees are aware of the process and understand the outcomes.