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1、,Base Wage and Salary Systems,Chapter 13,Learning Objectives,Define base wages and salaries and state the objective of any base wage and salary system.Define job evaluation.Name and briefly discuss the four basic conventional methods of job evaluation.Explain the concepts of key jobs and compensable
2、 factors.Differentiate between subfactors and degrees.,13-2,Learning Objectives(cont.),Explain the purpose of wage and salary surveys.Discuss wage and salary curves.Define pay grades and pay ranges.Explain the concepts of broadbanding,skill-based pay,competency-based pay,market-based pay,and total r
3、ewards.,13-3,Base Wage and Salaries,Base wages and salariesHourly,weekly,and monthly pay that employees receive for their work.make up the largest portion of an employees total compensation,13-4,Specific Policy Issues in Developing and Implementing a Base Wage and Salary Structure,13-5,Figure 13.1,O
4、bjective of the Base Wage and Salary System,Primary objective To establish a structure for equitable compensation of employees,depending on their jobs and level of performance in their jobs,13-6,Objective of the Base Wage and Salary System,Establishing pay ranges involves two basic phases:Determinin
5、g relative worth of different jobs to the organization(ensuring internal equity)Pricing the different jobs(ensuring external equity),13-7,Conventional Job Evaluation,Job evaluation Systematic determination of value of each job in relation to other jobs in the organizationUsed for designing a pay str
6、ucture,13-8,Conventional Job Evaluation,Gather information on the jobs being evaluatedIdentify factor or factors to be used in determining worth of different jobs to the organizationDevelop and implement a plan using chosen factors for evaluating relative worth of different jobs to the organization,
7、13-9,Job Evaluation Methods,13-10,Potential Uses of Job Evaluations,13-11,Figure 13.2,Job Ranking Method,Job ranking methodJob evaluation method that ranks jobs in order of their difficulty from simplest to most complex.,13-12,Job Classification Method,Job classification methodmethod that determines
8、 the relative worth of a job by comparing it to a predetermined scale of classes or grades of jobsAlso called job gradingdefined on basis of differences in duties,responsibilities,skills,working conditions,13-13,Point Method,Point methodmethod in which a quantitative point scale is used to evaluate
9、jobs on a factor-by-factor basis.simple to use and reasonably objective.,13-14,Selection of Key Jobs,Key jobs(benchmark)represent jobs that are common throughout the industry or in general locale under studyContent of key jobs should be commonly understoodGeneral idea is to select a limited number o
10、f key jobs that are representative of entire pay structure and the major kinds of work being evaluated,13-15,Selection of Key Jobs,Selection of key jobs should adequately representSpan of responsibilitiesDutiesWork requirements,13-16,Selecting Compensable Factors,Compensable factorsCharacteristics o
11、f jobs that the organization deems important to the extent that it is willing to pay for them.,13-17,Selecting Compensable Factors,Job subfactorDetailed breakdown of a single compensable factor of a job.,Degree statementsWritten statements used as a part of the point method of job evaluation to furt
12、her break down job subfactors.,13-18,Possible Subfactors and Degrees for the Compensable Factors of Responsibility,with Sample Jobs,13-19,Table 13.1,Assigning Weights to Factors,Weights are assigned to each of the factors,subfactors,and degrees to reflect their relative importanceWeight assigned var
13、ies from job to job,13-20,Assigning Weights to Factors,Weights are assigned on basis of maximum number of points for any jobPoints are then assigned to compensable factors,subfactors,and degrees based on their relative importance,13-21,Sample Point Values,13-22,Table 13.2,Assigning Points to Specifi
14、c Jobs,After point scale has been agreed on,point values are derived for key jobs using the following steps:Examine the job descriptionsDetermine degree statement that best describes each subfactor for each compensable factorAdd total number of points,13-23,Possible Point Totals for Key Banking Jobs
15、,13-24,Table 13.3,Factor Comparison Method,Factor comparison methodJob evaluation technique that uses a monetary scale for evaluating jobs on a factor-by-factor basis.,13-25,Factor Comparison Method,Each compensable factor is ranked according to its importance in each key jobDone by assigning a rank
16、 to every key job on one factor at a time rather than ranking one job at a time on all factorsAfter each key job has been ranked on a factor-by-factor basis allocate wage or salary for each job according to ranking of factorsMonetary scale is prepared for each compensable factor,13-26,Factor-by-Fact
17、or Ranking of Key Banking Jobs,Table 13.4,13-27,Sample Allocation Pay for Key Banking Jobs,13-28,Table 13.5,Monetary Scale for Responsibility Requirements in Banking Jobs,13-29,Table 13.6,Advantages and Disadvantages of Different Job Evaluation Methods,13-30,Table 13.7,Pricing the Job,13-31,Wage and
18、 Salary Surveys,Wage and salary surveySurvey of selected organizations within a geographical area or industry designed to provide a comparison of reliable information on policies,practices,and methods of payment.,13-32,Wage and Salary Surveys,AdvantagesProvides knowledge of market and ensure externa
19、l equityCorrects employee misconceptions about certain jobsHas a positive impact on employee motivation,13-33,Wage and Salary Surveys,Wage or salary survey information can be obtained in two basic ways:Conducting your own surveyPurchasing or accessing a wage/salary survey undertaken by another party
20、,13-34,Conducting a Wage/Salary Survey,13-35,Conducting a Wage/Salary Survey,Personal interviewMost reliable and most expensive methodMailed questionnairesProbably used most frequentlyUsed only to survey jobs having uniform meaning all over industryCan be answered by someone not fully familiar with
21、wage structure,13-36,Conducting a Wage/Salary Survey,Telephone methodQuick but yields incomplete informationMay be used to clarify responses to mailed questionnairesInternetInexpensive and quickAll companies are not reachable on Internet,13-37,Possible Topics in a Wage Survey,13-38,Figure 13.3,Purch
22、asing or Accessing Wage/Salary Surveys,Potential sources for relatively inexpensive wage/salary surveys includeThe Bureau of Labor Statistics of U.S.Department of LaborState and local governmentsTrade associationsChambers of commerceInternet,13-39,Purchasing or Accessing Wage/Salary Surveys,Surveys
23、available on the Internet fall into two broad categories:Surveys conducted by federal governmentSurveys conducted by private research organizations,professional associations,employees associations,and consulting firms,13-40,Sample of Web Sites for Wage/Salary Survey Data,13-41,Figure 13.4,Guidelines
24、 to Avoid Problems during Wage and Salary Surveys,Assess the participating companies for comparabilityCompare more than base wage or salaryConsider variations in job descriptionsCorrelate survey data with adjustment periods,13-42,Problems Encountered When Using Salary Survey Data,13-43,Figure 13.5,W
25、age and Salary Curves,Wage and salary curvesGraphical depiction of the relationship between the relative worth of jobs and their wage ratescan be used to indicate pay classes and ranges for the jobs,13-44,Wage Curve Using thePoint Method,13-45,Figure 13.6,Wage and Salary Curves,Points of graph not f
26、ollowing general trend indicateWage rate for that job is too low or too highThe job has been inaccurately evaluated,Green-circle jobsUnderpaid jobsRed-circle jobsWages are overly high,13-46,Pay Grades and Ranges,Pay gradesClasses or grades of jobs that for pay purposes are grouped on the basis of th
27、eir worth to an organization.,Pay rangeRange of permissible pay,with a minimum and a maximum,that is assigned to a given pay grade.,13-47,Pay Grades and Ranges,Two approaches for establishing pay grades and rangesTo have a relatively large number of grades with identical rates of pay for all jobs wi
28、thin each gradeTo have a small number of grades with a relatively wide dollar range for each grade,13-48,Establishment of Pay Grades with Ranges,13-49,Figure 13.7,Developing the Base Wage Salary Structure,13-50,Figure 13.8,New Approaches to the Base Wage/Salary Structure,13-51,Broadbanding,Broadband
29、ingCollapsing job clusters or tiers of positions into a few wide bands to manage career growth and deliver paybands usually have minimum and maximum dollar amounts that overlap,13-52,Broadbanding,AdvantagesManagers have more autonomy in setting pay ratesEasier to move employees aroundEncourages late
30、ral moves or downgrading in flat organizationsHelps improve communication teamwork,13-53,Skill-based Pay,Skill-based pay systemsSystems that compensate employees for the skills they bring to the job.,13-54,Skill-Based Pay,Employees are paid forRange of knowledgeNumber of business-related skills mast
31、eredLevel of those skills or knowledgeSome combination of level and range,13-55,Skill-Based Pay Potential Concerns,Increased labor costsTopped-out employeesFalse expectationsUnion agreements,13-56,Potential Benefits of a Skill-Based Pay System,13-57,Competency-Based Pay,Competency-based pay systemRe
32、warding employees based on knowledge,skills,and behaviors that result in performance.,13-58,Designing Competency-Based Pay,13-59,Figure 13.9,Market-Based Pay,Market-based pay systemsSystems that focus on external rather than internal equity and operate without traditional pay ranges.,13-60,Total Rewards,Total Rewardsinclude everything the employee perceives to be of value resulting from the employment relationship.”basic idea is to consider all aspects of the work experience,13-61,Total Rewards,13-62,
