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Job Evaluation in the Telecommunications / Media sector
The brief was:
To review the existing job evaluation scheme Review external schemes/processes and/or recommend one for the Client Provide a robust, fit-for-purpose methodology Provide line managers with the skill to evaluate jobs Recommend the number of grades that would underpin the needs of the business.
The existing job evaluation scheme
The in-house job evaluation system, introduced in 1997, had fallen into dis-use.
Therefore it was decided to undertake a 'root and branch' review of the Company's approach to job evaluation, the objective being to have a system in place offering the Company a banding system which is:
Evaluator+ ©
The in-house job evaluation system, introduced in 1997, had fallen into dis-use.
The latest Microsoft® Windows™ version of Evaluator+ © was used to support the development of the market-related graded salary structure.
It has the following features:
A user-configurable Personnel database with a capacity of at least one million records. An analytical factor plan which the user can populate with factors which are appropriate to the job population to be evaluated. A module for testing the weighting of each factor, offering choice in the weightings used The chosen Factor Plan is used to evaluate all the job descriptions, producing Evaluation profiles. Evaluation profiles are automatically assigned a number of points. Evaluation profiles can be compared with each other graphically to ensure consistency. Job Descriptions can be stored in the software. Comparing sets of evaluation points and the jobs' corresponding salaries, to enable the initial design and modelling of a cost-effective grade structure. A facility to introduce market-related salary data enabling comparisons with current salaries. The Equal Pay Report which identifies and measures any Gender gaps. Using in-house Performance ratings, the software facilitates Performance-related Pay (PrP). Ongoing management of PrP to ensure that users' stay in control of budgets.
Overall, the system provides you with a better defence against any Equal Value claim.
Key Findings
The in-house job evaluation system had no weightings or points attached to any of its factors. The Company was therefore unable to provide any evidence to justify any job being in any particular grade.
Nor were there any published salary ranges for any of the grades.
More than 80 jobs with the same job title were being paid in different grades to each other.
Training
Some 40 line managers and divisional HR staff were trained in the process of job evaluation, ensuring that the Company has a resource for evaluating new or changed jobs in the future, without recourse to outside help.
Evaluations
The evaluation of a benchmark sample of 154 jobs under-pinned the design of a ten-grade structure, whose parameters were related to the market place.
116 job holders' (75 per cent) salaries are within the recommended salary ranges; 7 job holders' (5 per cent) salaries are below the recommended lower limits of the grades - green circles; 31 job holders' (20 per cent) salaries are above the recommended upper limits of the grades - red circles.
If these benchmark job holders continue to be paid in accordance with their current salaries / grades, the pay bill amounts to £9,822,071.
Equal Pay Review
Included in the review was an equal pay review which identified a gender gap averaging 9.5 per cent across all existing grades.
Recommendations
It was recommended that the Company:
Introduce the new 10-grade structure Establish a strategy for evaluating the non-benchmark jobs Establish a strategy for dealing with the red and green-circles and the ongoing monitoring of the gender gap.
Potential Savings
In adopting the new structure, and reassigning the benchmark jobs to their evaluated grades, the pay bill at midpoint would be £9,040,756, (potentially saving £781,315 (7.95 per cent) of the pay bill).
In rolling this strategy out across the non-benchmark job population it has been estimated that the potential savings could well add up to around £17 million.
Rob Kenwrick
Senior Partner
The Bryher Partnership
October 2003 |
