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©2004 Atlantic Bryher Consultancy Ltd.

Job Pricing

Price the Pay or Pay the Price

There is an ever-present need in present market conditions to stay abreast of and pay market-related salaries for all kinds of jobs.  If employers don’t do this they are likely to lose their staff to their competitors.

We are often asked to price individual jobs for clients; the process we go through is described below:
 

Information requirements

We require copies of job descriptions and organisation charts which show how each job fits into the organisation,  to whom each reports, each job’s direct reports, and any other positions which report to the same boss and their reports.

It is also useful to have precise details of each job as follows:

 

  • Job Reference Number

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  • Employing Unit

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  • Geographical location

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  • Job Title

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  • Surname including First Name and Initials

  •  

  • Staff Reference Number

  •  

  • Sex

  •  

  • Ethnicity

  •  

  • Date of Birth

  •  

  • Date of Start with Company

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  • Date of Start this Job (if different)

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  • Current Basic Salary (FTE)

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  • Hours of Work if Part-time

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  • Grade

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  • Increment Values £ (if any)

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  • Last Increase £

  •  

  • Date of last increase

  •  

    Market Salaries

    In our experience, the major determinants of Basic Salaries are the Rank, or Authority Level each job commands in the Organisation, and the Size of the Organisation itself.  Size is measured according to the Annual Financial Turnover and / or the Number of Employees (Full time equivalents); Turnover in Public Sector terms is ‘Running Costs Budget’.  (Salaries can be further fine-tuned having regard for the Industry Sector concerned, the Geographical Region, and the Function involved).

    In establishing relevant salary levels we will use salary surveys published by reputable organisations such as those listed below.  Occasionally we conduct  bespoke surveys amongst competitors of our Clients.

    Over the years working in this sphere we have maintained contacts with a broad cross-section of organisations which review and comment upon salary and benefit information.  These organisations include:

     

  • Alan Jones & Associates

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  • Compensation Forum. Chartered Institute of Personnel and Development (CIPD)

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  • Compensation Research Limited

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  • Computer Economics / Remuneration Economics

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  • e - Reward

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  • Global Remuneration Organisation

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  • Inbucon Limited

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  • Incomes Data Services Ltd

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  • Monks Partnership Limited, Management Pay United Kingdom

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  • Office of Manpower Economics

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  • Pay & Workforce Research

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  • Reward Group Ltd

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  • Royal Society of Chemistry

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  • Top Pay Research Group

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  • Towers Perrin
     

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    Rank

    The typical ranks found in most conventional organisations are described below:

    RANK

    TITLE

    Description

    1

    The Chairman

    whether full or part-time.  The combined role of Chairman and Chief Executive should be shown as Rank 2

    2

    Chief Executive or Managing Director

    The most senior full-time executive of the parent or subsidiary organisation, who is not at Rank 1

    3

    Executive Director

    of the parent or subsidiary organisation, accountable for policy-making within a major Function or a profit-centre

    4

    Head of a MAJOR Division

    or a function who, although operating at policy level, is not a Director of the parent organisation.

    5

    Senior Manager

    of the organisation concerned, often responsible to a Rank 3.  Will generally spend some time working on strategic matters (i.e. decision time span of one year ahead)

    6

    Middle Manager

    of the organisation concerned, operating below, but not necessarily subordinate to a jobholder at Rank 5.  Will generally be a budget holder but will not spend time on strategic matters ( i. e. decision time span limited to one year).

    7

    Junior Manager

    (or equivalent) of the organisation, operating below, but not necessarily subordinate to a jobholder at Rank 6. 

    8

    Supervisor

    With several direct reports

    9

    Senior APTCS

    Senior Administrative, Professional, Technical, Clerical or Skilled

    10

    A C or S-S

    Administrative, Clerical or Semi-Skilled

    11

    Junior AC or MU

    Junior Administrative, Clerical or Manual Unskilled

    Great care should be taken in allocating staff and / or their jobs to these Rank levels.  A rule of thumb is that you cannot be at the same rank level as your boss; however, this doesn’t mean that you are in the adjacent rank level to your boss.  For example, the Chief Executive or Managing Director would clearly fit into Rank 2.  Assuming s/he has a  Secretary / Personal Assistant, it would be likely that the latter job would fall into Rank 9, possibly Rank 8 if it had several staff reporting to it. 

    some organisations, not all Rank levels will be found and indeed it may be necessary to ‘fit’ some specialist staff into Rank levels or even create special or half Ranks to meet the cultural needs of each Client. 

    Ranking of jobs can be further analysed using our computer assisted  job evaluation tool Evaluator+ ©.