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1、Job Grades&Salary RangesCompa-ratios(CR)q a compa-ratio(comparative ratio)is a measure of the extent which the average salaries in a grade deviate from the target salary.q it is used to compare actual averages with the target salary to indicate the extent which salary levels are high or low.q the fo
2、rmula for calculating a compa-ratio is:Average of all salaries in the grade -x 100 Midpoint of the salary rangeqa compa-ratio of 100 indicates that the average salary is aligned to the midpoint of the salary grade and no corrective steps need to be taken.Compa-ratios(CR)qa compa-ratio of 80 would in
3、dicate a need to investigate why average salaries were low and possibly no longer competitive.q a compa-ratio of 120 would suggest either there were a lot of long-service staff or that staff were being overpaid,and that increases needed to be modified.q compa-ratio analysis can reveal a situation wh
4、ere earnings drift has taken place.Competitive Posture(CP)qCompetitive Posture is a measure of how competitive the salary is with respect to a given market benchmark.qCompetitive Posture can be used to measure the competitiveness of both companys or individuals salary competitiveness in the marketqC
5、ompetitive Posture for a company is computed as:nCR=Average of all Salaries in a given Job GradeMarket Benchmark Salary qCompetitive Posture for an individual is computed by:nCR=Salary of the individual Employee Market Benchmark Salary Salary AdministrationMinimum Salary Points1.Minimum salary for t
6、he grade2.Minimum for Job In the market3.Set compa-ratio at 1.004.Overlap between 60%to 80%5.Avoid leapfrogging tendencies6.Allow for realistic minimumSalary AdministrationMaximum Salary Points1.Maximum salary for the grade2.Maximum for job in the market3.Keep salary range short(8-12 years)4.Maxmin
7、ratio between 1.5 to 2.05.Set compa-ratio at 1.006.Allow for realistic maximumSalary AdministrationMaximum1.Maximum salary for the grade2.Maximum for job in the market3.Keep salary range short(8-12 years)4.Maxmin ratio between 1.5 to 2.05.Set compa-ratio at 1.006.Allow for realistic maximumMinimum1.
8、Minimum salary for the grade2.Minimum for Job In the market3.Set compa-ratio at 1.004.Overlap between 60%to 80%5.Avoid leapfrogging tendencies6.Allow for realistic minimumMinimum And Maximum PointsStreamlining of Salary Ranges(Executives)Effective 1 January 1995*Most typical value corresponds to the
9、 working midpoint of the range Derived from annual base salary#Dispersion factor of+/-25%around Q1 valuesJob Reference LevelsThe reference job description prepared to assist non-hay evaluated companies with job matching,are each evaluated and quality assured against Hays standards.The evaluations ar
10、e then slotted into the relevant job unit range which forms the reference levels.These reference levels and corresponding job unit ranges are now standard throughout all Hays main remuneration surveys and are detailed below.Job Reference LevelsSalary AdministrationDetermining Entry Salary 1.Market v
11、alue 2.Candidates existing salary 3.Basic qualifications 4.Additional qualifications 5.Relevant working experience6.Related working experience 7.Completion of national service 8.Geographical location of company 9.Nature of industry(dirty or hazardous)10.Minimum salary for job grade11.Salaries of exi
12、sting incumbents12.Re-grossing annual salaryIncremental Systems Incremental systems vary from rigid procedures with fixed and predetermined movements through a scale related to age,service in the company or service in the job,to flexible systems where management exercises complete discretion over th
13、e award and size of increments without any guidelines.Between the two extremes there is a middle ground of semi-flexible systems.qFixed scales with automatic progression where individuals move through jobs or grades by predetermined steps related to age or service,these could be rate for age scales.
14、Fixed scales are criticized because they do not give enough incentive to effort and the improvement of performance-promotion might only be an award in the longer term,if at all.They are defended because they can be operated with complete impartiality-many people,especially civil servants,question th
15、e possibility of determining a fair relationship between merit and reward where the only method of measurement is the subjective opinion of someones boss.Incremental SystemsqFixed scales with limited flexibility where it is possible to give double or even triple increments to high flyers and withhol
16、d increments for poor performers.qSemi-fixed scales which allow automatic progression to a merit bar at which progression for some people may stop while other can advance at different rates according to performance.qFixed parallel scales which allow for the exercise of more managerial discretion by
17、providing different patterns of incremental progression for different levels of performance,as shown in figure 10.Incremental SystemsqVariable progression with guidelines where there are no fixed incremental points,but managers are given more or less mandatory instructions on how they should exercis
18、e their discretion.The minimum guidelines in this system nay consist of the annual increments that can be awarded for different levels of performance.These may be extended in more rigid systems to give the proportion of staff who should receive a given increment.qVariable progression in range withou
19、t guidelines where management discretion in the award of increments and the determination of their size tends to be restricted only by the maximum of the salary range and the budget they are allowed for salary increases.Incremental SystemsAnnual IncrementqFixed increment system-Fixed$-Fixed%qVariabl
20、e increment system-Fixed variable-Fixed Plus(merit increment)qFlexible increment system-Fixed component+flexible componentqMatrix system-Salary quadrant vs.performance matrixSalary Progression CurveIncrement vs Performance MatrixMarket Value ComputationSalary Review GuidelinesqOverall cost guideline
21、s in which a budget of x%of payroll is imposed for merit reviews.This is the essential guideline,and managers may be left to distribute the pool as they please,or subject to various degrees of control.qGuidelines maximum and minimum increases managers are told that they cannot give an increase of mo
22、re than x%or less,on the grounds that too high an increase could produce inequities and too low of an increase is meaningless.Salary Review GuidelinesqGuidelines on the relationship between performance and reward the awards should be related to an overall assessment of performance on a scale such as:AssessmentIncrement(%)A Outstanding9 10B Good7 8C Satisfactory4 6D Needs improvement0%plus counseling*E UnsatisfactoryTermination*only if there is hope of improvement&individual needs encouragement