【文章內容簡介】 onship between job evaluation points and salaries paid for jobs ? Plot actual salaries paid for benchmark jobs and pare them to results from market Matching external pay and internal job evaluation points for key jobs 80 120 160 200 240 280 320 360 Job Evaluation points WITHIN Firm 7 6 5 4 3 2 1 Survey Monthly Pay ($000) X X X X X X X X X X = Key benchmark jobs job evaluation point by salary data point from market survey Matching external pay and internal job evaluation points for key jobs 80 120 160 200 240 280 320 360 Job Evaluation points WITHIN Firm 7 6 5 4 3 2 1 Survey Monthly Pay ($000) X X X X X X X X X X = Key benchmark jobs job evaluation point by salary data point from market survey “ Line of best fit” External Market Policy Line The Goal – What should nonkey jobs be paid? 80 120 160 200 240 280 320 360 Job Evaluation points WITHIN Firm 7 6 5 4 3 2 1 Survey Monthly Pay ($000) X X X X X X X X X O = Nonkey benchmark jobs – mapping other jobs onto the pay system “ Line of best fit” External Market Policy Line O O O O O O O O Roughly $1800 Roughly $4300 The Reality – Where do jobs really fall? 80 120 160 200 240 280 320 360 Job Evaluation points WITHIN Firm 7 6 5 4 3 2 1 Survey Monthly Pay ($000) X X X X X X X X X O = Nonkey benchmark jobs – mapping other jobs onto the pay system “ Line of best fit” External Market Policy Line O O O O O O O O O O O O External Competitiveness (cont’d) (3) Company Pay Policy ? If a pany’ s wage curve is below or above the market wage curve, decisions have to be made about whether to move wages or leave them as they are ? Firms can pay at the market level (follow), above the market (lead), or below the market (lag) ? Companies paying below market will have a harder time attracting employees External Competitiveness (cont’d) (4) Pay Grades and Pay Ranges ? Jobs are grouped into job grades associated with a pay range ? Each range has a midpoint, a minimum, and a maximum ? Midpoints represents an employee who is fully qualified and functioning at an acceptable level of performance ? Ranges will have overlap—the less overlap the more difference between jobs in each grade Designing the internal pay structure: Pay Grades A pay grade is a horizontal group of different jobs that are considered substantially equal for pay purposes Grades enhance an anization39。s ability to move people among jobs within a grade with no change in pay. The objective is for all the jobs that are similar for pay purposes to be placed within the same grade. Pay Ranges Refer to the vertical dimension of the pay structure Each pay grade is associated with a pay range consisting of a midpoint and a specific minimum and maximum Midpoints: ? Correspond to petitive pay policy where the pay policy line crosses each pay grade ? Are the control points of the range Range spread – judgment about how the ranges support career paths, promotions, etc. Typically range between 10 and 120%. Minimum of pay range = Midpoint / [1 + (1/2 range spread)] Maximum = Minimum + (range of spread * minimum) Setting the pay grade structure 80 120 160 200 240 280 320 360 Job Evaluation points WITHIN Firm 7 6 5 4 3 2 1 Survey Monthly Pay ($000) Pay Grade Pay Range Maximum Minimum Mid Point Differential Ranges External Competitiveness (cont’d) (5) Broadbanding ? Consolidates a large number of pay grades into a few “ broad” bands, usually 3 to 10 ? Maximum pay for a particular band can be as high as 100400% above the band’ s minimum pay ? Bands are usually wide enough that changes in the market don’ t require adjustments as often Pay for Individual Performance ? Initial pay based on the person’ s previous experience, education and negotiating skills ? Increases can be tied to meeting goals, providing higher levels of service or results of performance appraisal ? Red circled job —person being paid above the maximum wage for grade ? Green circled job — person being paid below minimum of gra