Effective Classification Strategies NCIPMA Fall Workshop The MAPS Group

1. Effective Classification StrategiesNCIPMA Fall WorkshopThe MAPS Group The MAPS Group

2. Classification PlanA grouping of positions by the classification factors to create internal equity among jobs of similar difficulty and responsibility. The MAPS Group

3. Why have a classification and pay plan?1. Recruit and retain employees 2. Internal Equity3. Equal pay for equal work4. Effective utilization of resources5. Basis for effective pay system 6. Defensible system The MAPS Group

4. KeyTermsClass: a group of positions that are similar >In Nature & Level of work & >Requires similar KSA’s The MAPS Group

5. Position: Collection of duties to be performed by one employee.Class Specification:general description: >Broad Responsibilities >Examples of duties >Requirements-KSA’s, licensing, etc The MAPS Group

6. Job Description: Written description of the duties and requirements of a single position.Employee: Person appointed to a specific position The MAPS Group

7. Classification Factors: 1. Variety and Complexity-Difficulty 2. Work Relationships 3. Decision-Making 4. KSA’s 5. Work Environment & Hazards 6. Physical Effort 7. Supervision Given and Received The MAPS Group

8. Not Classification Factors:1. Volume of work2. Length of service3. Employee qualifications4. Employee’s performance The MAPS Group

9. Classification & Pay Review Process • Identify Need • Develop Plan & Process for Review • Conduct Employee Orientations • Employees Complete Job Questionnaires • Conduct Interviews • Conduct Market Salary Survey • Complete Analysis • Write Classification Specifications and Report • Present Report • Implementation The MAPS Group

10. Periodically update classifications 1. Jobs change 2. Market changes - different rates for different jobs. The MAPS Group

11. Effective Classification Strategies • What methodology will be used? • Who will conduct the classification study? • How will classification study be conducted? • When and how will classification results be implemented? The MAPS Group

12. Methodology(Ways to Evaluate Process) • Simple Ranking • Position Classification • Point Factor The MAPS Group

13. Methodology(Ways to Evaluate Process) • Simple Ranking • Relatively quick & simple to use • Works best in small occupational groups with wide differences in jobs The MAPS Group

14. Methodology(Ways to Evaluate Process) • Position Classification • Evaluates positions as a whole using classification factors to analyze position components • Compares jobs to each other based on the factors • The more positions in the occupational group, the more difficult to use • Requires experienced analyst to do well The MAPS Group

15. Methodology(Ways to Evaluate Process) • Point Factor • Assigns points to factors (i.e. low/medium/high on complexity) • Evaluates positions on all factors against the standard rather than other positions • Useful for evaluating many positions across department and occupational group lines • Easier for new analyst to use • Lends itself to group evaluations • Appears to be objective but only applies numbers to judgments • Overkill for small organizations and groups especially when market sets most of classification parameters The MAPS Group

16. Who Will Conduct the Study? • Internal Staff • Consultants • Combination The MAPS Group

17. Who Will Conduct the Study? • Internal Staff • Knowledge of the organization • May not have expertise • May not have the time • May not be viewed as objective The MAPS Group

18. Who Will Conduct the Study? • Consultants • Knowledge and expertise in classification & pay • Can probably complete sooner • Organization may not have resources to use • Probably viewed as more objective • Consultant freer to make tough recommendations The MAPS Group

19. Who Will Conduct the Study? • Combination • Gain the knowledge and expertise where needed • May save some costs • Organization may not have expertise • Organization may not want to use staff time The MAPS Group

20. How Will Study Be Conducted • Study Entire Organization • Study a Portion of the Organization • Study the Organization in Cycles (ex. 1/3 or 1/4 per year) The MAPS Group

21. How Will Study Be Conducted • Study Entire Organization • Best able to ensure appropriate relative relationships at same time • Organization may not be able to afford the cost of consultant and time for employee participation • Potential for large implementation costs The MAPS Group

22. How Will Study Be Conducted • Study a Portion of the Organization • Use when turnover or other issues indicate that classifications in one segment of the organization are more out of line than the whole • May cause morale issues with others in the organization The MAPS Group

23. How Will Study Be Conducted • Study a Portion in Recurring Cycles (ex. 1/3 or 1/4 every year) • Select occupational groups or departments • Costs spread over several years • Employees know when to expect a study of their jobs • Positions with rapidly changing market values may not be studied often enough • Danger that commitment to implement may change mid-cycle The MAPS Group

24. Implementation • No Implementation • Full Implementation • Staged Implementation The MAPS Group

25. Implementation • No Implementation • Don’t do it! • Commitment to implement in some way should be obtained before study is done • Creates morale issues if expectations are created and not fulfilled The MAPS Group

26. Implementation • Full Implementation • Ideal • May be more than the organization anticipated or can afford • Planning to incorporate with budget important The MAPS Group

27. Implementation • Staged Implementation • Partial implementation may be more affordable to the organization • Can implement over two years rather than all at once • Allows for advance budget planning The MAPS Group

28. Compensation System and How to Conduct and Interpret Salary Surveys The MAPS Group

29. Compensation System Components • Classification and Pay Plan • Market Adjustment (Cola) • Range Movement Method • Longevity The MAPS Group

30. Market Adjustment (Cola) Includes: Consumer Price Index (CPI) Local Market Important to: retain competitive position attract qualified employees retain experienced employees avoid cost of turnover The MAPS Group

31. Range Movement • Probationary increase • Merit/performance pay • Length of service • Skill based pay • Some combination of above The MAPS Group

32. Performance/Merit Pay Trends • Shift resources into performance pay • Employee involvement • Supervisory training • Overall emphasis on improvement The MAPS Group

33. Longevity Pay • Rewards and recognizes • Fourth Priority • Clarifies difference with performance pay • Trend toward specific dollar amounts The MAPS Group

34. Definition of Pay Plan A listing of jobs by salary grade with minimum and maximums of each range with salary chart. The MAPS Group

35. Identifying Your Market Criteria: • Core Market • Cover all important jobs • Floor and ceiling • Credibility • Special circumstances Importance of consistency from year to year and from job to job The MAPS Group

36. Choosing Jobs to Survey Benchmark jobs Entry level Mid Level Management level The MAPS Group

37. Practice Session The MAPS Group