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Compensation (HR-200)

HR-205 Administrative/Professional Compensation

Summary

Job evaluation is a systematic method of determining the relative value of all jobs in the University of Missouri. That value is based on job content, not on how well an individual performs the work. It involves a three-step process which includes job analysis, writing a job description, and evaluation of the job. Job classification is the final result of these three steps. It simply means properly matching each University employee to the appropriate job title and level.

Responsibilities

To effect a strong compensation program, management must determine job responsibilities; write/update the job description; and work with Human Resource Services to properly classify employees. In turn, Human Resource Services must determine exemption status under Fair Labor Standards Act criteria; understand and evaluate the job; and assign the title, code, and level.

Evaluation Factors

These are the factors that are used to evaluate an administrative/professional job. Each is covered in the specification of the written job description. These factors measure: EDUCATION - depth of knowledge normally acquired through education or specialized formal training; EXPERIENCE - depth and breadth of knowledge or skill in terms of related work experience and on-the-job training; JOB SCOPE - decision-making requirements including job complexity, independence of action, and analytical and creative job requirements; INSIDE RELATIONSHIPS - responsibility for contacting and dealing with administrative staff, faculty, students and others within the University; OUTSIDE RELATIONSHIPS - responsibility for representing the University and dealing with donors, vendors, community groups, and others outside the organization; MANAGERIAL RESPONSIBILITY - influence the importance of decisions including responsibility for budgeting, managing human resources, utilization of assets, revenue control, planning, policy and strategy development; and POSITION CONDITIONS - degree to which the position has certain undesirable working conditions present.

Salary Structure

The objective of salary structure is to pay salaries that are externally competitive and internally equitable. Creating the salary structure includes an annual salary survey conducted to determine competitive pay; a pay policy line constructed by fitting the results of the salary survey and corresponding assessment of job responsibility (The pay policy line is adjusted annually based on changes in the market place); salary levels for job classifications determined according to relationship to the pay policy line based on level of job responsibility; and individual salary adjustments given within the salary structure based on job performance.

Conclusion

Sound management judgment is essential in ensuring internal equity for all University employees and in meeting the institution's objectives. Job evaluation and salary structure are important elements in determining salary cost and equity. However, managers provide the primary control that keeps cost and equity in balance. Managers make decisions on hiring employees, appraisal/counseling, merit increases, promotions, transfers and terminations.

See Also

HR 202 FLSA Status and HR 203 Position Classifications

Date Created: 9/26/97

Last Updated: 7/1/2002