There are several steps in the job ranking method: Obtain Job Information Select and Group Jobs Select Compensable Factors Rank Jobs Combine Ratings Job Classification (Job Grading) is a method for categorizing jobs into groups. Classes are grouping jobs based on a set of rules for each group or class, such as amount of independent judgment, skill, physical effort, and so forth, squired. Grades are a job classification system like the class system, although grades often contain dissimilar jobs, such as secretaries, mechanics, and firefighters.
Grade descriptions are written based on compensable factors listed in classification systems. Grade Definition is written descriptions of the level of, say; responsibility and knowledge required by jobs in each grade. Similar jobs can then be combined into grades or classes. Point Method is the job evaluation method in which a number of compensable factors are identified and then the degree to which each of hose factors is present on the job is determined.
Wage Curve is shows the relationship between the value of the job and the average wage paid for this job. Market-Competitive Pay System is a pay system in which the employer’s actual pay rates are competitive with those in the relevant labor market. How To Create A Market-Competitive pay Plan: Choose Benchmark Jobs Assign Weights to Compensable Factors Convert Percentages to Points for Each Factor Define Each Factors Degree Determine for Each Factor Its Factor Degrees’ Points Review Job Descriptions and Job Specifications Evaluate the Job
Draw the Current (Internal) Wage Curve Conduct a Market Analysis: Salary Surveys Draw the Market (External) Wage Curve Compare and Adjust Current and market Wage Rates for Jobs Develop Pay Grades Establish Rate Ranges Address Remaining Jobs Correct Out-of-Line Rates Pay (Or Wage) Grade is a pay grade comprised of jobs of approximately equal difficulty or importance as determined by job evaluation. Pay (Or Rate) Ranges is a series of steps or levels within a pay grade, usually based upon years of service. Comma Ratio is equals an employee’s pay rate dividend by the pay range outpoint for his or her pay grade.
Competency-Based Pay is where the company for the employee’s range, depth, and types of skills and knowledge, rather than for the job title he or she holds.