The
‘Reward Manager’ Job Evaluation and Salary
Modelling Tool has been designed for both simplicity and ease of use.
When installed, the Scheme contains up to
2,000 plus graded job elements either created by the Institute
of Administrative Management
(the originator of Reward Manager) or developed by
users of the Scheme. These can be added to or deleted as required.
Additional job elements are either
downloaded from other users systems or developed in-house, using the
algorithms and factor chart provided. In this way, the System is
tailored exactly to meet the user’s purpose.
The
System is also very user friendly, incorporating switchable on/off
“help” that is available at every stage and for every field – this
means that every move is prompted should you need it. It is fully menu
driven, making every use of ‘Windows’ drop-down menus
with push-button controls. It also integrates a full word-processing
function for the generation of correspondence and reports, as well as
one of the best quick-reporting functions available today.
The
system is full 32 bit windows and is multi user. It can be easily
customised to meet your specific needs and, if required, organisational
and personnel data can be loaded from existing sources so the system is
ready for use from day one.
How does the system work?
- Benchmark
jobs are selected for evaluation, and Questionnaires are generated
containing appropriate job elements
- The
Job Evaluation Questionnaires are then run-off and distributed to
the job holders, who enters the time spent (expressed as a
percentage of the total time on the job) against job elements that
are applicable to the post. Additional industry specific job
elements along with the corresponding percentage of time can be
entered free hand by the job holder onto the questionnaire.
- Managers/supervisors
then agree this input with the employee. Referring any disputed to
the Scheme Administrator or other person(s) acting as ‘referee’.
- The
‘industry specific’ job elements identified are added to the job
element library and sized using the job-sizing wizard.
- The
data is inputted to the computer and an in-built algorithm
calculates the points scored and grade (if established) for each of
the benchmark jobs. The results can be ‘accepted’ or
‘rejected‘ by the Scheme Supervisor or Administrator. If is
rejected, then it can be changed. However, to do so it is necessary
to have appropriate authorisation together with an explanatory
comment.
- Once
all jobs have been evaluated, existing salaries /pay rates are put
against each job (usually by ‘downloading’ from the existing
Personnel or Payroll system), so that current pay ranges can be
established for each new grade.
- This
data is then transferred automatically to the salary-modelling tool
so that it can be used to identify wage/salary drift. From
experience wage drift typically averages around 10% (of which at
least 3% can often be saved). This data is then used to develop new
grading structures using external as well as internal indicators.
- Finally,
new wage/salary structures are generated and printed, as are
up-to-date Job Descriptions and letters to the employees concerned.
Job Evaluation
Panels are usually not needed and it is recommended that the whole exercise
be carried out by only two to three staff, with data entry actioned
through data entry clerks without allowing them access to any of the
salaries or grades.
Experience has shown that for an
organisation of 500 employees the complete exercise can be carried out
in two to three months from installation of the System to the issuing of
details of new /revised salary scales.
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Translating Outcomes into Job
Grades/Pay Scales
Once
all the jobs have been graded within the system and any desirable manual
adjustments made, actual wages and salaries are downloaded from payroll
to give ‘ranges’ for each grade.
These
appear on the screen as Max, Min, Upper Quartile, Lower Quartile,
Median, and so forth, for each grade. This process reveals anomalies
in the existing structure and the extent of wage or salary drift
that exists.
The
range may then be compared with salary data, interactively on the screen
or from hard copy, and broad bands are established. From this the maxina,
mid-points and minima for each grade or band are determined. Employees
are then ‘slotted-in’, depending upon the budget available.
Once
this has been done, ‘what if’ exercises and costings can be carried
out until a new and revised structure has been established, savings
made, and employees informed.
Using MCI Competences
So
far as managers and supervisors are concerned their positions can be
evaluated using the mentioned method or they can be evaluated against
the competency requirements of the job – or a combination of both.
Where
competences are used, the relevant competences are selected from the
current MCI list and a senior manager, or team of senior managers, are
asked to rank the importance of each one to the job against a
computer-generated list. These rankings are then converted by the System
into a point’s score, which can sit alongside the original System or
be incorporated with it. It again produces a computer-generated grade
which can be further fine tuned by rating and allocating ‘hard
factors’ to the job - related to ‘turnover’, ‘sales’, ‘staff
managed’, ‘budget administered’ etc.
There are also Managerial Job Elements
built into the main System, covering key management behaviours and
functions that can be ‘time element’ rated in the same way as for
other staff.
The Reward Manager
programmers can meet the majority of clients’ evaluation and
remuneration system requirements, whatever they are, and indeed most
systems end up “bespoke” to some degree.
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