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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:
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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
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Staff Reference Number
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Sex
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Ethnicity
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Date of Birth
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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 £
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Date of last increase
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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:
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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:
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RANK |
TITLE |
Description |
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1 |
The Chairman
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whether full or
part-time. The combined role of Chairman and Chief Executive
should be shown as Rank 2 |
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2 |
Chief Executive
or Managing Director |
The most senior
full-time executive of the parent or subsidiary organisation,
who is not at Rank 1 |
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3 |
Executive
Director |
of the parent
or subsidiary organisation, accountable for policy-making within
a major Function or a profit-centre |
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4 |
Head of a MAJOR
Division |
or a function
who, although operating at policy level, is not a Director of
the parent organisation. |
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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) |
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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). |
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7 |
Junior Manager |
(or equivalent)
of the organisation, operating below, but not necessarily
subordinate to a jobholder at Rank 6. |
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8 |
Supervisor |
With several
direct reports |
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9 |
Senior APTCS |
Senior
Administrative, Professional, Technical, Clerical or Skilled |
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10 |
A C or S-S |
Administrative,
Clerical or Semi-Skilled |
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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+ ©. |
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