JOB EVALUATION &
SALARY
STRUCTURE DESIGN
Seminar Speaker & Facilitator: RAFAEL Z. PERFECTO, F.P.M.
EFFECTIVE SALARY
ADMINISTRATION
Internal Job Value Job Evaluation
External Job Value Salary Survey/Design
Pay for Performance Performance Appraisal
OBJECTIVES OF
JOB EVALUATION
To Measure the value of jobs within
the company
To attract and retain highly-motivated
and well- qualified employees
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.
JOB ANALYSIS
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Methods of Job Analysis
(Interview, Questionnaire,
Observation)
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Sources of Job Information
(Primary, Secondary)
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Job Data Analysis (What, How,
Where, How often)
JOB DESCRIPTIONS
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What is a job description?
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Uses of Job Descriptions
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Steps in developing job
descriptions
Steps in Developing Job
Descriptions
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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
Job Description Format
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Position Title:
Department/Section/Unit:
Reports to:
Supervises:
Job Summary:
Duties & Responsibilities:
Job Specifications: (qualification
requirements)
WORDS TO AVOID
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Performs
Ensures
Assists
Coordinates
Prepares
Liaises
Monitors
Entertains
WORDS TO AVOID
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Implements
Facilitates
Maintains
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
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
JOB FACTORS
Relevant work experience
Education
Accountability
Human Relations Skill
Analysis & Decision Making
Working conditions (Hazards & Physical
demands)
Supervision
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.
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:
1. Establishing and recommending
the job rating plan
2. Job clarification
3. Discussion & deliberation
4. Objective rating
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”
SALARY MARKET DATA

Rationale for conducting salary surveys
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Selecting companies to be surveyed:
Geography
Industry
Size
Combination
Competition (for good people)
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Sources of Salary Data
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Own Survey
Joint Survey (groups or
associations)
“Off-the-shelf” or third party
surveys
Customized third party surveys
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 midpoint rate, and a maximum rate.
Analyzing Market Data
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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
Basic Rules in Designing a
Salary Structure
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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.
Basic Rules in Designing a
Salary Structure
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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.
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”
FOR YOUR TRAINING NEEDS.
“Excellence in People Development.”
TEL: (02)964-7068; 0917-890-9595
FAX: 806-5743
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