Required Material

To begin your module, read the overview of the wage & salary administration process in this Wage & Salary Administration document.

Module 1 – Background

Wage and Salary Administration

Money is not the most important thing in the world. Love is. Fortunately, I love money.

—Jackie Mason, comedian

Job evaluation methods can range from simple to complex. Job ranking and paired comparison are the simplest forms. For each the job as whole is compared with other jobs. This is followed by ranking them in order of importance from simplest job to most difficult. Jobs are judged according to duties, responsibilities, and job demands.

Job classification methods examine job grades or classes with similar difficulty or require similar skills. The grades are determined from job analysis information. Jobs are placed into a class based on how well its characteristics fit in the class.

Point factor rating is commonly used where jobs are broken down over identifiable factors such as skills, effort, knowledge, responsibility, job conditions, etc. Plots are allotted for each factor. Weights are given depending on the job worth. Jobs with similar points are placed in the same grade.

Factor comparison method combines both the ranking and points methods by rating jobs and comparing them. Factor comparison is often used to evaluate higher-level positions (professional and managerial).

The following video presents these methods in more detail:

· Job Ranking

· Paired Comparison Ranking

· Job Classification

· Point Factor Rating

· Factor Comparison

Course Videos. (2015, October 22). Chapter 8: Part 1 – point method system: Identifying and scaling compensable factors [Video file]. Retrieved from https://www.youtube.com/watch?v=kFQAI37ifXk.

Course Videos. (2015, October 22). Chapter 8: Part 2 – testing the job evaluation system; determining base pay structure [Video file]. Retrieved from https://www.youtube.com/watch?v=jRKk-sS3rlY.

Gregg Learning. (2016, September 23). Step 5: Base pay structure [Video file]. Retrieved from https://www.youtube.com/watch?v=CnBsWsY6O7k.

Timeless TimeHR. (2014). Methods of Job Evaluation [Video file]. Retrieved from https://www.youtube.com/watch?v=_FQEVSRdU1Y.

Wile, K. (2017). Life lines: Is happiness worth a pay cut? Bizwomen. Retrieved from https://www.bizjournals.com/bizwomen/news/out-of-the-office/2017/06/life-lines-is-happiness-worth-a-pay-cut.html?page=all

Optional Material

OWLPurdue. (2012, May 9). Purdue Owl: APA formatting: The basics [Video file]. Retrieved from https://www.youtube.com/watch?v=pdAfIqRt60c&list=PL8F43A67F38DE3D5D

Business & Legal Reports (Firm). (2014). Employee Compensation in [choose a state]. Madison, CT: BLR. Retrieved from EBSCO in the Trident Online Library.

FMI Management Consulting. (2013). Incentive compensation survey. Retrieved from http://www.fminet.com/media/pdf/report/IncentiveCompSurveyReport_2013.pdf

Phillips, R., & Robinson, J. (2016). Developing & maintaining a sound base pay program, pp. 4-26. Retrieved from http://www.wageandsalary.com/care/guides/structure.pdf