Pay Reform Perspectives in Jordan Amman-Jordan September 2006

1. Ministry of Public Sector Development Pay Reform Perspectives in JordanAmman-JordanSeptember 2006

2. Current Status • Autonomous Authorities have much higher salary scale, plus variation in pay across line ministries • Around 15% of the employees are hired on projects and as daily wages workers • Pay scale in civil service based on educational qualification and length of service • Responsibility in not appropriately rewarded

3. Current Status • Lack of incentive schemes to attract and retain talents • Small differentials between highly skilled and unskilled staff • Low base salaries and low core wages • Ad hoc pay adjustments every now and then • Changes in allowances strongly influenced by pressure groups • Reduce anomalies and ensure the equitability across job families • Develop analytical job classification and job evaluation schemes

4. Objectives: • Develop effective organizational structure for the concernedgovernmental entities • Enable line ministries to attract and retain qualified employees • Reduce anomalies and ensure the equitability across job families • Develop analytical job classification and job evaluation schemes

5. Objectives: • Develop a systematic pay and grading structure that is: • compatible with all human resource policies • remunerates based on relative worth of jobs • addresses all aspects of remuneration • consolidates allowances with salary • strengthen control over remuneration • introduces de-compressed pay differential

6. Job Evaluation: • A formal and systematic comparison of jobs in order to determine the worth of one job relative to another • The comparison results in a salary hierarchy • Compensable factors are fundamental elements of a job

7. Job Evaluation Methods:1: Ranking • Obtain job information • Select raters and jobs • Select compensable factors • Rank Jobs (ordering by importance, weighting, paired comparison) • Group jobs to determine the appropriate salary level • Combine ratings

8. Job Evaluation Methods:1: Ranking Advantages • Appropriate for small companies (few jobs) • Simple to administer Disadvantages • Difficult for large #s of jobs or new job • Rank judgments are subjective • No standards used for comparison

9. Job Evaluation Methods:2: Job Classification • Rates categories of jobs into groups. • Groups called classes if jobs are similar • Called grades if groups contain different jobs of similar difficulty

10. Job Evaluation Methods:2: Job Classification Advantages • Simple • New jobs can be classified more easily than the ranking method Disadvantages • Classification judgments are subjective • The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees. • Some jobs may appear to fit within more than one grade/ category

11. Job Evaluation Methods:3: Point Method • It is a more quantitative method • Identified compensable factors (skills (experience, education, ability), effort (physical and mental), responsibility (fiscal and supervisory) and working conditions (location, hazard, extremes in environment) • The degree to which each of these factors in present • Assume five degree of “responsibility • Most widely used method

12. Job Evaluation Methods:3: Point Method Advantages • The value of the job is expressed in monetary terms • Can be applied to a wide range of jobs Disadvantages • The pay for each factor is based on judgments that are subjective • The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees

13. Job Evaluation Methods:4: Factor Comparison • A widely used method to rank jobs by variety of skilled and difficulties, then adding these to obtain a numerical rating for each job • Rank each job several times- once for each of several compensable factors

14. Job Evaluation Methods:4: Factor Comparison Advantages • The value of the job is expressed in monetary terms • Can be applied to a wide range of jobs • Can be applied to a newly created jobs Disadvantages • The pay for each factor is based on judgments that are subjective • The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees

15. Main Outcomes: • Revised organizational structure • Job descriptions of all positions • A standardized pay and grading methodology • A complete job classification, and job evaluation of all existing jobs in the civil service • A new integrated pay and grading structure • A computer based system that has a pay modeling capability for conducting job evaluations for all public service jobs • Mechanisms for reviewing the pay and grading structure.

16. Areas of Concern: • How to guarantee effective organizational structures with no exaggerations • How to ensure controlled promotion mechanisms in the absence of credible competency assessment tools • How to address some job titles with different responsibilities due to the difference of volume and size of the entity • What are the most appropriate factors • How to mange financial ramifications • How to guarantee the credibility of the raters

17. Thank You