We understand the entire Job Evaluation process and also provide our clients with training on Job Evaluation specifically the Paterson grading system. We also have the capacity to conduct desktop grading exercises and our reward specialists also sit on Job Evaluation and Validation Committees to provide external expertise.
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Job Analysis – Brief Basics
Job Analysis is of the first step in creating a defensible remuneration structure that will ensure effective management of Remuneration and other Human Resource procedures and processes. It is also the most neglected.
Job Analysis forms the basis for and interlinks to almost all of the processes, procedures and structure within a Remuneration and Human Resources framework of an organisation. Simply put, Job Analysis is the direction indicator to moving your Remuneration management forward. The schematic below illustrates this point.
Most remuneration specialists advocate that the proper structure needs to be in place when managing and administering remuneration effectively. It is essential to have this foundation in place before implementing any further human resource or remuneration strategy interventions. For example, you may decide to develop and implement human resources policies and procedures manual or a performance incentive bonus scheme for your organization, however, without a proper foundation in place formal human resources policies and procedures will raise a number of concerns, most of which will apply to the organisation’s internal equity. Below we look at some pointers and need-to-know information around job analysis.
Job Analysis, simply put, is determining what a job in an organisation should be doing and what is needed to effectively perform the responsibilities.
The Things to Consider are:
The purpose of the job: It is important to accurately define what a job does in the organisation. Any job whether it be a Cleaner or a Managing Director will work in some form of limitation or parameter. It is important to define what these limitations are to avoid blurred lines of responsibility up or down the hierarchy of the organisation. The second important aspect of defining the purpose of the job is to indicate what the objective of the job is. See the section Job Profiling for more information.
Reporting lines of the job: This is important to avoid any reporting lines that do not make sense or that may be impractical, such as dual reporting lines that may conflict with the purpose of the job. It is generally only at executive level where dual reporting may be required and this normally happens in a global organisation where a job should report to a regional or global head of department.
Competencies required for the job: This would be very much aligned to the industrial psychology discipline and does form part of our services. This is where the key and critical competencies of an individual are required to adequately perform a job.
Measurement of job responsibility: This is important as it will determine how to motivate an individual performing in a job. It also forms the basis of performance management processes and procedures.
Areas of responsibility: Job Analysis is closely linked to Job Profiling. Knowing what the job does in terms of the job’s areas of responsibility is crucial to avoid overlapping of areas of responsibilities between jobs as well as ensuring that an organisation is using its resources at optimal capacity.
Skills and Education: This would normally refer to the minimum requirements to be able to perform in the job. We use the minimum requirements as it will not be plausible to employ an individual who is over qualified to fill a job and comes at an overinflated salary in relation to the job requirements.
Job Size Parameters: The job size parameters start having a significant impact on the accountability of a job where an organisation operates on a multinational platform. This is specifically important to promote internal equity and fairness. A job that has a large financial accountability within a wider operational area will have a greater impact than the same job that operates in a small operational area with a very small financial turnover.
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Job Profiling – It’s more than just writing it down
Job profiling is a term used to outline an employee’s job description in any given role. It explains the key function as well as responsibilities that are associated with one’s tasks.
Employees are often very sensitive when they find out that the organisation is revisiting the job profiles or drafting profiles if there were none to begin with. It is important for any remuneration professional to be aware of this sensitivity as job profiles form the basis of job grading, which is directly linked to their remuneration.
Most professionals approach the profiling exercise from a mechanical point of view. They just want to get it done. However, there is more to profiling than writing down what a job does. The golden rule is that job profiling should be as defensible and as transparent as possible.
The above illustrates that what an employee perceives their job/role to entail can differ somewhat from what the expected job/role is from a line manager or supervisor point of view. It is important to understand and mediate the profiling of all jobs to ensure that both the job holder and supervisor agree on the job profile and its contents. This is called the Accepted Role.
Internal control is an important facet to the job profiling exercise, as well as maintaining the “accepted role” principle to clarify that the content in the job profile is agreed on.
The general good practice on the job profiling procedure includes a standard template which must be reviewed and signed off by the necessary stakeholders and managers. This can be seen as a frustrating exercise, especially for those professionals who are not fully aware of the complexities that accompany the profiling exercise.
At Remuneration Consultants, we have extensive experience in job analysis and drafting job profiles, as well as dealing with a bargaining unit during this process. Our Industrial Psychologists facilitate competency profiling and organisational design enabling us to provide an end-to-end service.
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Job Grading – A Brief Overview
Job grading is the process of using formalized systems for determining the relative value of jobs within an organization. It typically involves the ranking of jobs through the use of some or other points-factor system where the key characteristics are:
Main Purpose of Job Grading
Secondary Purpose of Job Evaluation
Job Grading Systems
There are numerous job grading systems. Many of them are proprietary systems that belong to consulting firms. Below we list some of the grading systems that companies use:
Paterson
Paterson is the only non-points-based job grading system available and is widely used in the African Continent. Jobs are compared by evaluating the level of decision-making. The overall hierarchy of jobs however, is the same as if a points based job evaluation system is used
Task ®
Task ® is a fine tuning of the Paterson System of Job Grading. Jobs are first placed in a band, or skill level. Task, however, only uses 5 levels, as opposed to Paterson’s 6. The skill levels used in Task are ‘Basic’, ‘Discretionary’, ‘Specialised’, ‘Tactical’ and ‘Strategic’. Thereafter, placing the jobs into the relevant sub levels or grades is based on factors; complexity, knowledge, influence and pressure.
Peromnes ®
Peromnes ® scores jobs on a number of factors; problem solving, pressure of work, job impact, consequence of judgement, educational qualifications, training and experience. The overall score is applied to a sliding scale to determine a job grade. This system is mostly used by educational institutions, due to its emphasis on formal qualifications.
Hay ®
The Hay ® method of job grading was developed in America. It is also a points based system. However, it only measures jobs using three factors; know-how, problem solving and accountability. In an attempt to enable Hay to be applied to blue collar occupations, a forth factor, namely working conditions, has subsequently been included. This system is mostly used by large American corporates such as Coca-Cola, Colgate Palmolive, Microsoft, Google, Johnson and Johnson, etc.
REMeasure ®
REMeasure ® is an internet based job grading system that appoints a Paterson Band and then apportions a score to each job. The following factors are used to measure jobs; qualifications, knowledge and skills, experience and training, problem solving, communication, financial impact and influence.
JE Manager ®
JE Manager ® is a computerised job grading system and is owned, marketed and administered through the Hay Group. It assesses the scope and complexity of a job on the basis of three groups of factors; output, input and process factors. Each of these groups contains two factors. Each individual factor is weighted, and then measured on two dimensions. This is a highly recommended system. However, it is extremely costly, and in addition, still requires a high level of job evaluation knowledge of the administrator.
Below is an approximate correlation of grades between some of the popular grading systems.
| OCCUPATIONAL LEVELS | Paterson Classic (levels) | Paterson Modern (bands) | ReMeasure © (points) | Hay Units © (points) | Hay Decision Tree (C) points) | Peromnes © (points) | Task © (levels) | JEasy © (levels) | DESCRIPTION |
| Top Management/Executives | F+1 – F+5 | G Band’ | 300-349 | 3581-7160 | 1++ | Controls the functional integration of the business. Determines the overall strategy and objectives of the business. Directs the company into the future. | |||
| Fl – F5 | F Lower-F Upper | 250-299 | 1801-3580 | 225-275 | 1 to 1+ | 23-26 | 6a-6e | ||
| Senior Management | E1-E5 | E Lower-E Upper | 200-249 | 735-1800 | 175-224 | 4-2 | 18-22 | 5a-5e | Knowledge of entire business area/BU/company or group. Provide inputs for/formulation of the overall Organisational strategy. Translates the overall strategy into business plans for BU/Functional Unit, thereby operationalising organisational strategy. Implements and manages business plan, goals and objectives and ensures the achievement of overall key OrganisationaVBU/Functional outputs. Manages the development of innovation and change |
| Professionally Qualified & experienced specialists/midmanagement |
D1-D5 | D Lower-D Upper |
150-199 | 371-734 | 125-174 | 7-4 | 14-18 | 4a-4e | Professional knowledge of sub-discipline or discipline. Provide input in the formulation of Organisational/Functional Unit business plans. Formulate and implement departmental/team plans that will support the BU business plans. Optimisation of resources (finances, people, material, information and technology) to achieve given objectives in most productive and cost effective way. |
| Skilled Technical Academically Qualified/ Junior Management/ Supervisors/ Foremen/ Superintendents | C1-05 | C Lower -C Upper | 100 -149 | 192-370 | 75-124 | 11-7 | 9-13 | 3a-3e | Applies broad knowledge of products, techniques and processes. Evaluates procedures and applies previous experience. A good solution can usually be found. Determines own priorities. What has to be done is stipulated; but may require initiative in terms of how it should be done |
| Semi-Skilled & discretionary decisionmaking |
B1-85 | B Lower-B Upper |
50-99 | 85-191 | 25-74 | 15-11 | 4-8 | 2a-2e | Accountable for direct product, process or service quality. Incremental improvement of existing processes and procedures according to clear guidelines. Choosing of correct action on the basis of set standards, training procedures and past experience |
| Unskilled & defined decision-making |
Ai -A3 | A | 20-49 | 54-84 | 0-24 | 19-16 | 1-3 | 1a-1c | Steps to accomplish work or processes are clearly defined and understood. Tasks are sometimes repetitive and uncomplicated and he work cycle is short |
1 The F+1 – F+5 levels are commonly referred to as the G Brand in industry and extend beyond the Paterson Classic F5 brand.
Table from GOVERNMENT GAZETTE, 1 AUGUST 2014, p42
When Should a Job Be Graded?
When Should a Job NOT Be Graded?
Principles of Job Grading
The Job Grading Committee
The role of the Job Grading Committee is to grade jobs in a fair and consistent manner using the agreed job grading system that the organisation decides to use. The Job Grading Committee of the organisation normally functions in a two-tier structure, constituted as follows:
Job Evaluation Unit
This Unit is typically made up of trained job analysts. The head of HR normally decides which members is to be part of this unit and requires designating one of the members as Chairperson.
The Unit will then evaluate all positions and submit the outcome of such evaluations to the Validation Committee.
Validation Committee
All job evaluation results as evaluated by the Job Evaluation Unit will be submitted to the Validation Committee for final review and validation prior to implementation of such results.
The Validation Committee shall be appointed for a period of 2 (two) years and shall for the first 2 year period consist of any five (5) Directors. The Validation Committee shall determine its Chairmanship.
The Validation Committee will not re-evaluate positions evaluated by the Job Evaluation Committee, but will identify aspects requiring further consideration, such as internal relativities, comparisons with similar graded positions etc. The Validation Committee will determine whether the results of a given job evaluation process are to be implemented as such, or whether further consideration must be given to certain aspects of the original evaluation by the Job Evaluation Unit.
