# Presentation: 243213

## Job Evaluation Research

***Strategic Compensation Conference 2001***

**Workforce Compensation**
** ****and Performance **
**Service**

## Job Evaluation

- Development of Federal Job Evaluation
- Strategic Issues Surrounding Job Evaluation
- Alternative Methods of Job Evaluation
- Alternative Methods in Federal Agencies
- Literature Review
- Thought Leader Perspectives

## Job Evaluation

- Development of Federal Job Evaluation

## Federal Job Evaluation

-  Historical Development
-  Goals of the General Schedule
-  Structural Changes in the Federal Workforce

## The Evolving General Schedule Workforce

## Job Evaluation

- Strategic Issues Surrounding Job Evaluation

## Strategic Issues and Alternative Courses of Action	

- Strategic Issues and Alternative Courses of Action

- Issues

- Alternative Actions

- 1.	Should job evaluation be used to determine pay?

- 2.	What is work evaluation?

- 1. Keep vs. Abolish

- 2.  Job vs. Work

- 3.  Single vs. Multiple vs. Mass Customization

- 4. Person or Job vs. Team vs. All

- 3.	Should there be one work evaluation system or multiple work evaluation systems?

- 4.	Should work evaluation focus on the person or the job?

## Strategic Issues and Alternative Courses of Action	

- Strategic Issues and Alternative Courses of Action

- Issues

- Alternative Actions

- 5. Centralized vs. Decentralized vs. Both

- 6.  Manual vs. Automated

- 7.	Who should conduct the work evaluations?

- 7.  Supervisor vs. Fiscal Specialist vs. Employee vs. Jobs Analyst vs. Panel

- 5.	Should the work evaluation system be centralized or decentralized?

- 6.	Should work evaluation systems be manual or automated?

- 8.	Should the work evaluation be based on the current job and job incumbent or be based on the way the work should be designed and the type of person that should be performing the work?

- 8. Work Currently “is” vs. What Work “could be”

## Strategic Issues and Alternative Courses of Action	

- Strategic Issues and Alternative Courses of Action

- Issues

- Alternative Actions

- 9.	How often should work evaluations be conducted?

- 9. Timing vs. Approval vs. Change in work

- 10.	Who should be covered by work evaluation?

- 10.  Some vs. All

- 11.	Should a work evaluation system be custom-made or should a commercially available system be used?

- 11.  Make, Buy, Adapt

## Strategic Issues and Alternative Courses of Action	

- Strategic Issues and Alternative Courses of Action

- 12.	Should the work evaluation system lead, lag, or be installed concurrently with other changes to the compensation system?

- 13.How does work evaluation differ from performance evaluation?

- 13.  Work vs. Performance

- Issues

- Alternative Actions

- 12.  Lead vs. Lag vs. Match

## Job Evaluation

-    Alternative Methods of Job Evaluation

##  Alternative Methods of Job Evaluation

-  Ranking
-  Market Pricing
-  Banding
-  Classification
-  Single Factor Plans
-  Competencies
-  Point Factor

## Evaluating Diverse Jobs/Work

- With various attributes
- number of corners, size, color

**RANKING**

- No explicit criteria,
- just “overall value”

## Evaluating Diverse Jobs/Work

- With various attributes
- number of corners, size, color

**MARKET PRICING**

- Uses cost in market place as means of ranking

## Evaluating Diverse Jobs/Work

- Banding
-  Jobs grouped by common characteristics
-  Groups  rank-ordered
-  Banding: Work Evaluation v. Pay Structure

## Evaluating Diverse Jobs/Work

***Level Description***

***Classification Level***

- Combines factors into overall descriptions of each classification level

**Level 4**

**Yellow or blue, large, more than 5 corners**

**Yellow, blue or green, at least medium, more than 5 corners**

**Level 3**

**Any color, at least medium, any number of corners**

**Level 2**

**Any color, small**

**Level 1**

- Objects placed in highest level at which they meet all criteria

**CLASSIFICATION**

## Evaluating Diverse Jobs/Work

- With various attributes
- number of corners, size, color

**SINGLE FACTOR**

- Uses only one feature to assess value, e.g., number of corners

## Evaluating Diverse Jobs/Work

- Competencies
-  Multiple factors
-  KSAs & Other Characteristics
- Observable behaviors

## Evaluating Diverse Jobs/Work

- With various attributes
- number of corners, size, color

**POINT FACTOR**

**SIZE**
- Small = 	20 pts
- Medium =	40 pts
- Large = 	60 pts

**COLOR**
- Red = 	40 pts
- Green =	80 pts
- Blue = 	120 pts
- Yellow = 	160 pts

**CORNERS**
- 0 - 5=	0 pts
- 6- 9 = 	10 pts
- 10 - 20 = 	20 pts

- Uses several factors and arrives at overall relative value using point weighting

- Red
- Gre
- Blue
- Yell

- 60
- 40
- 40
- 20

- L
- M
- M
- S

- 40
- 80
- 120
- 160

- 8
- 10
- 0
- 0

- 10
- 20
- 0
- 0

- 110
- 140
- 160
- 180

## Work Evaluation Taxonomy

- Single

- Multiple

***Number of Standards***

**Comparison**

***Other Jobs***

***Written Standards***

- Ranking

- Market Pricing

- Banding

- Factor Comparison

- Classification

- Single Factor Plans

- Point Factor System

- Competencies

## Alternative Federal Systems

-  Simplified Classification
-  Factor Systems
-  “Whole job” Slotting
-  Market Pricing
-  Single Factor

## Job Evaluation

- Literature Review

## Literature Review

- Major Perspectives on Job Work Evaluation
- Work Evaluation Framework
- Work Evaluation Outcomes

## Literature Review

- Major Perspectives
- Traditionalists
- Realists
- Market Advocates
- Strategists
- Organizational Development

## Literature Review

- Major Perspectives
- Social Reality
- Contingency Theory
- Competencies
- Cognitive Decision-Making

## Work Evaluation Framework: Variables Identified in the Literature to Date

**Evaluator Characteristics**

- Sex
- Experience
- Union Status
- Management Status

**Evaluatee Characteristics**

- Sex
- Salary level
- Education
- Experience
- Race

**Environment Conditions**

- Labor Market
- Laws & Regulations

**Work Evaluation Process**

**Organizational Conditions**

- Support systems (Training, dispute resolution, automation, mass customization, technical expertise)
- Power and Politics
- Business Strategy
- Structure

**Work Evaluation Outcomes**

- Reliability
- Validity
- Acceptability
- Organizational Effectiveness

## Literature Review

- Work Evaluation Outcomes
- Reliability
- Validity
- Acceptability
- Organizational Effectiveness

## Job Evaluation

- Thought Leader Perspectives

## Summary of Future Trends By Thought Leaders

- 1.	Point-factor systems will continue to be used for work evaluation in the old economy companies.
- 2.	New economy companies will use classification systems for work evaluation.
- 3.	Greater emphasis will be placed on variable pay than base pay in compensation design and administration.
- 4.	Broadbanding will be used by all organizations, but in conjunction with career development, and with less broad bands.

## Summary of Future Trends By Thought Leaders

- 5.	Market pricing will be used by all organizations, most in conjunction with work evaluation.
- 6.	Employees will have access to pay data with or without company permission.
- 7.	Managers and employees will have more emphasis in pay decisions than HR analysts.
- 8.	Compensation packages will eventually be tailor made for each employee rather than groups of employees.

## Summary of Future Trends By Thought Leaders

- 9.	A lack of attention to measurement issues in pay system decisions, especially work evaluation, will result in many legal challenges by employees the next time the economy turns down and pay increase levels are reduced.
- 10.	New forms of “validation” will need to be developed for pay system decisions to supplement content, criterion-related, and construct validation design.