Accelerate May 2015 - Page 67

Reward Step 2: Job Analysis or Role Profiling Step 1 - Pay Policy Development Step 2 - Job Analysis or Role Profiling Step 3 - Job Evaluation Some organisations separate this process, some use them interchangeably, some use either one. Analysing a job or developing a role profile is basically a comprehensive description of exactly what the job entails. This process would include the purpose of the job, its reporting structure, key performance areas, activities, qualification and experiential requirements, and a list of skills and competencies required. An indication of environmental factors and other special characteristics would also be required. Step 3: Job Evaluation Step 4 - Salary Benchmarking Step 5 - Pay Structure Design Table 1. Designing a Pay Structure Step 1: Pay Policy Development You need to decide how you want to remunerate your employees. Do you want to pay more, less or equal to the rest of the market? In other words, lead, lag or equal to the market. Please understand the significance of your company policy in attracting, motivating, retaining and developing your workforce through the implementation of a highly competitive pay philosophy. Job evaluation is the process of determining the complexity or weight of a job. There are many job evaluation methods available to do this. Job evaluation is not about the incumbent, but rather about the difficulty of the job. It is not about volume (or how much or how many), but rather about how complex the contents of the work are. The role profile or job analysis is used to determine this complexity. It is, furthermore, not about the performance of the incumbent. Step 4: Salary Benchmarking or Pay Survey Analysis Salary benchmarking or pay survey analysis is the process of benchmarking the job evaluation results to market related pay data contained in the form of a survey. This is done to determine how the company is paying its employees as compared to the rest of the market. May 2015 67