JOB EVALUATION PROCESS and SALARY LEVEL GRID DEVELOPMENT October 2012 1 What is Job Evaluation (JE) Complete operation of determining the value of an individual job in relation to other jobs within an organization and it is a method of rating jobs on a gender-neutral basis Uses various criteria (factors) to fairly and objectively determine the relative value of jobs Not a performance appraisal Not an employee wage setting process Not an exact science 2 Comparing Apples to Oranges APPLES CRITERIA (Factor) ORANGES 150 grams Weight 150 grams 87 Calories 73 21.7 grams Carbohydrates 18.3 grams 0.3 grams Protein 1.5 grams 140 IU Vitamin A 300 IU 3 Why do we do Job Evaluation? Pay Equity Act required public sector compliance by Jan. 1, 1990 Establish a wage structure in accordance with pay equity legislation based on: Skills Responsibility Effort Working Conditions Develop accurate and up-to-date job descriptions Provide a method of evaluating newly created or modified jobs 4 Job Evaluation Committee The composition of the Job Evaluation Committee (JEC) requires a cross section of staff, including those with previous job evaluation experience as well as individuals with no experience but a fresh perspective on positions in the organization. Representatives from across all commissions are required for specific departmental knowledge of positions. Representatives from both Management and Employee Groups 5 Composition of JE Committee Corporate Services Manager of Accounting Real Estate Manager HR Services Coordinator Public Health, Safety & Social Services Manager of Administration – OWB Administration & Project Coordinator – Housing Public Works Director of Fleet & Transit Director of Operations Marketing Coordinator – Public Works Community Services Manager of Aquatics & Fitness *Currently two vacancies on the committee from the Community Services Commission. 6 Role of JEC Evaluate jobs based on job evaluation manual Members do not rate their own jobs Management reps do not rate jobs in a direct reporting relationship Rating results are reviewed by the committee as a whole through a “sore-thumbing” process for consistency and fairness Job evaluation rating worksheets are developed by the committee to ensure appropriate rationale, where applicable for each degree rating 7 Review of Exempt Job Evaluation Manual FACTORS SUBFACTORS SKILL 1. Education 2. Experience 3. Decision-Making EFFORT 4. Physical Demand 5. Mental/Sensory Demand RESPONSIBILITY 6. Accountability 7. Budgetary 8. Financial Processing & Commitment 9. Human Resources 10. Contacts WORKING CONDITIONS 11. Working Conditions 8 Review of JE Manual EDUCATION (Skill) Identifies the general knowledge and specialized or vocational training necessary to perform the job duties in a satisfactory manner Normally expressed in terms of formal education or equivalent – it’s important to use today’s educational levels and standards Has no relationship to the academic achievement of an employee Correlates to Experience sub-factor 9 Review of JE Manual EXPERIENCE (Skill) Establishes the amount of practical experience that an average individual having the appropriate theoretical knowledge, specific education & specialized training would require to be able to perform the job duties. The sum of A) experience in any related work or work in previous positions and other relevant work & life experiences which are necessary for performance of the job B) The period of training and adjustment on the job itself 10 Review of JE Manual DECISION-MAKING (Skill) measures the required judgement, choice of action and initiative of the job. Considers the following characteristics of the work: limiting effects of supervisor's instructions and work checks requirement to work to detailed and established procedures, standards, practices & precedents latitude allowed for decision-making judgement that is permitted within the limits and restrictions of the position; not the capabilities of the incumbent(s) 11 Review of JE Manual ACCOUNTABILITY (Responsibility) identifies the effect on the organization of making errors in judgement in the decision-making process considers nature of work checks considers consequences such as financial loss, disruption or delay in service, etc. emphasis is on typical effects of errors based on decisions made in the job – do not reflect rare or extreme circumstances 12 Review of JE Manual BUDGETARY RESPONSIBILITY Measures the responsibility or accountability for financial resources Considers the level of control and administration for a budget taking into consideration its magnitude Divided into: Fixed component such as grants, wages, benefits, utilities, fuel costs, etc. and Variable component such as fees, fines, seminars, training, etc. 13 Review of JE Manual FINANCIAL PROCESSING AND COMMITMENT (Responsibility) Measures the responsibility or accountability for financial resources Considers the responsibility for handling or processing financial transactions on a regular basis Considers the responsibility for activities that result in making financial commitments Considers the level of signing authority for invoices or to approve expenditures 14 Review of JE Manual HUMAN RESOURCES RESPONSIBILITY Measures the extent to which an employee is required to supervise and direct the work of others such as students, volunteers, employees (full-time, part-time, casual, etc.) of the employer and/or employees of other organizations (eg. Contractors) providing services to the Corporation Considers the nature of supervision given, whether direct, indirect or functional Includes the number of employees supervisor 15 Review of JE Manual CONTACTS (Responsibility) considers the purpose of communications conducted reflects the method of communication such as verbally or in writing identifies the types of contacts such as co-workers, clients, etc. measures the varying degrees of responsibility for handling the contacts tactfully and harmoniously 16 Review of JE Manual PHYSICAL DEMAND (Effort) Considers the physical requirements of the job by type and duration Includes activities such as: Sitting (restricted break times) standing climbing stairs/ladders stooping, kneeling, crouching working in an awkward position (e.g. data entry/word processing, etc.) 17 Review of JE Manual MENTAL / SENSORY DEMAND (Effort) Reflects the period of time that mental, visual and/or aural concentration is required on the job Considers both the frequency and duration of the sensory demand that cause fatigue Includes activities such as: listening reading / teaching / counselling report writing / word processing / data entry combination of five senses (sight, taste, smell, touch, hearing) 18 Review of JE Manual WORKING CONDITIONS Factor measures the type and frequency of disagreeable conditions under which an employee is required to carry out the job duties considers only those conditions which are inherent in the nature of the work extreme situations where the risk of a specific accident or situation occurring is unlikely is not considered Stress is not rated since it is reflective of individual tolerance levels and not job specific 19 Job Evaluation Worksheet FACTOR Education Experience Decision Making Accountability Budgetary Responsibility – Fixed : Budgetary Responsibility – Variable Financial Processing & Commitment Responsibility for Human Resources Contacts Physical Demand Mental / Sensory Demand Working Conditions DEGREE RATIONALE A degree with rationale is assigned to each factor after reviewing the submitted job information – each degree is assigned a value which in turn is added together to get an overall total point value for the job. 20 Points Established for Exempt JE Grid Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level 1 (0-179) 2 (180-219) 3 (220-259) 4 (260-299) 5 (300-339) 6 (340-379) 7 (380-419) 8 (420-459) 9 (460-499) 10 (500-539) 11 (540-579) 12 (580-619) 13 (620-659) 14 (660-699) 15 (700-739) 16 (740-779) 17 (780-819) 18 (820-859) 19 (860-899) 20 (900-939) 21 (940-979) The outcome of job evaluation is a hierarchy of jobs – a listing of the jobs in the organization, from the one with the lowest job evaluation point value to the one with the highest value. 21 Reconsideration Process Incumbents receive a detailed JE worksheet outlining the rationale for each assigned degree by factor If incumbent disagrees with one or more degree results, there is an opportunity to submit an appeal by providing additional information through the reconsideration process JE Committee considers additional information submitted and then a final decision is made 22 Salary Grid Development The salary grid is the relationship of pay to the various positions in the organization. The following is what was involved in developing the salary grid: Determine the number of pay levels using the point values from the job evaluation process (usually a 25-40 point spread often with easily identifiable break points) Determine benchmark (key) positions in each pay level based on the job evaluation process. Review the 50th to 65th percentile salary information for the various benchmark positions from comparator organizations and survey data. Establish the job rate (Step 5) for each pay level based on the benchmark position salary information. 23 Salary Grid Development Develop the grid steps –Step 5 = 100% = job rate Minimum Step 1 = 80% of job rate (for individuals new to the organization or position who have the basic required qualifications) Slot the remaining jobs into the appropriate salary levels based on the job evaluation results. Review the 50th to 65th percentile salary information for the various benchmark positions from comparator organizations and survey data. Make adjustments to a position’s pay level, where appropriate. 24 Maintenance of Salary Administration System Ability for incumbents and/or supervisor to submit updated JE questionnaires for evaluation by the JE Committee when there are significant changes to the duties and responsibilities of the position All newly created positions are evaluated after incumbent has completed six months in position to ensure accurate reflection of prior evaluation results Review of municipal comparator information to ensure that positions are within the 50th and 65th percentile of 11 Council approved comparator municipalities during second year of Council’s term 25