1. Job Review & Validation
Begins with clear job description
Comparison to jobs of similar nature in
selected surveys
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2. Validation team
Compensation selects job reviews Needs updating?
description and sends to
appropriate validation description.
team.
Yes No
Validation team
matches description
Go to instructions with closest generic
for job descriptions. job title and
responsibility level
from survey data.
The position is Compensation
NO YES matches salary data
slotted and an A match is with the average of
appropriate salary identified position salary data
grade assigned. from current year
survey report.
Changes, if
Validation team and necessary, are made
Compensation and communicated
Manager agree on
appropriate salary to the affected
grade. employee.
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3. Job Descriptions
Provide the organization with documentation of the major
responsibilities and duties (nature and level of work), job
specifications (knowledge, skills and abilities) and working
conditions which are required for competent performance of
the job.
 Facilitates job-content evaluation.
 Facilitates salary survey exchanges.
 Assists in recruiting efforts.
 Establishes minimum performance standards.
 Assists in defining career paths (succession planning).
 Serves as documentation for legal challenges to compensation
determinations, job administration and staffing actions.
The job description process typically needs to include the
immediate manager/supervisor, department key manager,
compensation manager, and incumbent, if applicable.3

4. Job Descriptions
Snapshot of job -- captures most important
elements of job
– Should cover 80% of job.
Three major sections:
– General Summary
– Principle Duties and Responsibilities
– Knowledge, Skills, and Abilities
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5. Job Description Flow Chart
· New Job Manager Discusses
· Change to Job Content with the Does the Job match
Compensation to an existing Job Yes
Job
Manager
No
Manager writes the The Compensation Manager initiates the
job description and Manager conducts change and
sends it to the the Benchmarking communicates this to
Compensation (Internal/External) the employee
Manager
The determination
of the Salary Grade
Yes Questions??? No is made and
reviewed with the
Manager
Manager Compensation Final review and
communicates completes the final approval by two
change(s)to documentation levels of
employee(s)
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Management

6. “Administrative Exemption”
Job Description Preamble
“Administrative Exemption” is granted since the
primary duty of this position is the performance of
office or non-manual work directly related to
assisting the management or general business
operations of the Company with the running of the
business or servicing our customers; and whose
primary duty includes the exercise of discretion
and independent judgment with respect to
matters of significance to the Company.
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7. “Executive Exemption”
Job Description Preamble
Number of Employees Supervised = 2 or more
“Executive Exemption” is granted since the primary
duty of this position is management of a customarily
recognized department or subdivision. This position
customarily and regularly directs the work of two or
more other employees. The incumbent’s suggestions
and recommendations are given particular weight as to
hiring, firing, advancement, promotion or other
change of status of other employees.
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8. “Learned Professional Exemption”
Job Description Preamble
“Learned Professional Exemption” is granted since the
primary duty of this position is the performance of work
requiring knowledge of an advanced type in a field of
science or learning customarily acquired by a prolonged
course of specialized intellectual instruction. This position
includes work requiring the consistent exercise of
discretion and judgment, which is predominately
intellectual in character and requires advanced knowledge
generally used to analyze, interpret or make deductions
from varying facts or circumstances.
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9. “Computer Professional Exemption”
Job Description Preamble
“Computer Professional Exemption” is granted since this
position has a primary duty of (A) application of systems
analysis techniques and procedures, including consulting with
users, to determine hardware, software of systems functional
applications; or (B) design, development, documentation
analysis, creation, testing, or modification of computer systems
or programs, including prototypes, based on and related to user
of system design specifications; or, (C) design,
documentation, testing , creation or modification of computer
programs related to machine operating systems; or (D) a
combination of duties described in (A), (B) and (C), the
performance of which requires the same level of skills.
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10. What is a Job Family?
A job family is a group of jobs in a major
work function sharing similar background,
education, and experience requirements.
 Matching positions to job families is done based
upon the duties, responsibilities, background
and experience requirements of your positions,
not the department or business unit that the
position is in.
 For instance, while Engineering positions (such
as Field Service) may exist in the Operations or
Customer Service departments, those jobs are
matched to an Engineering job family, not
Operations or Customer Service. 10

11. What is a Career Level?
A Career Level is a distinct level of responsibility and proficiency
within a job family. In each of the job families positions are typically
assigned to one of the following career levels:
Management Professional Technician Admin. Hourly
M3 - 3rd Level Manager P5 - Expert T3 - Lead A3 - Lead H3 - Lead
M2 - 2nd Level Manager P4 - Advanced T2 - Skilled A2 - Skilled H2 - Skilled
M1 - 1st Level Manager P3 - Career T1 - Entry A1 - Entry H1 - Entry
MS - Supervisor P2 - Intermediate
P1 - Entry
While the definitions and requirements of the survey’s career
levels are generally consistent across our job families, some
differences exist between different types of job families (e.g.
technical vs. non-technical families). The career levels applicable
to each job family are described in terms of the general
experience/ education, knowledge/skills/abilities, and typical
responsibilities expected at
each level in each family.
NOTE: Executive positions are not assigned career levels,
as all are assumed to be top managers.
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12. BENCHMARKING MARKET
& JOB LEVELS (Example)
 MECHANICAL ENGINEER 1 (ENTRY LEVEL position) Bachelors Degree in
Mechanical Engineering or equivalent experience.
 MECHANICAL ENGINEER 2 Bachelors Degree in Mechanical Engineering
or equivalent experience, and 2 years of applicable mechanical
engineering experience.
 MECHANICAL ENGINEER 3 Experience and Training: Bachelors (Masters
preferred) in Mechanical Engineering or equivalent experience, and 5
years of applicable mechanical engineering experience.
 MECHANICAL ENGINEER 4 Experience and Training: Masters Degree in
Mechanical Engineering or equivalent experience, and 8 or more years of
applicable progressively complex Mechanical Engineering experience
 MANUFACTURING ENGINEER 5. Excludes those with full supervisory
responsibilities. Experience and Training: Masters Degree in
Manufacturing Engineering or equivalent experience, and 10 or more
years applicable progressively complex Manufacturing Engineering
experience. 12

13. Benchmarking
• Intent is to match base pay to market to
remain competitive
• Competitive salaries are measured
through use of published salary surveys.
• Preference is to compare local
companies that are similar in terms of
skills required, technological
sophistication, size, and products.
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14. Salary Surveys
Survey Sources & Quality Considerations
Good
 Clear job or role definitions to ensure “apples to apples” comparisons
 Efforts to support job matching
 Sufficient sample size for statistical inference, i.e., lots of participants!
 Full range of compensation elements and appropriate statistical measures
 Rigorous data auditing and cleaning
 Flexible (electronic) output formats
Bad (Let’s just say, “not so good”)
 Very brief and/or generalized job definition
 Collect average pay per job instead of incumbent-specific data
 Base salary only
 Averages only
 Self-reported data (e.g., professional association surveys of their members)
Ugly
 Statistically biased (e.g., recruiting firm “surveys”)
 Unnamed sources and participants
 e.g., Monster.com, Salary.com, Payscale .com
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15. Surveys
& Appropriate Labor Markets
Appropriate labor market should be
determined by level of position:
Non-Exempt (and Hourly)
Local only
Exempt
Local primary
Regional secondary
Key Employees & Management
National primary
Local secondary
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16. Surveys & Similar Companies
Companies in the salary surveys
meet one or more of the following
criteria
• Similar size business, i.e. complexity of
the job is comparable
• Companies with similar positions
• Geographic location is in the area from
which location would recruit to fill the
position
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17. Non-Benchmark Jobs
Jobs for which you can’t get good data
 Job evaluation is the traditional answer
 “Slotting” of jobs to estimate market
value can be an alternative
Link a given job to one or more other
benchmark positions that have been market
priced, and thereby assigning it to the same
reference data.
Example: slotting an OD Manager against an
HR Manager and a Compensation Manager
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18. Position Matching
Blended Jobs
Financial Systems Analyst
Match to Financial Analyst, Systems Analyst or both?
1. “Highest Common Denominator” approach (recommended)
Survey Position Market Median Base Salary
Financial Analyst $60,000
Systems Analyst $70,000
Reference value for your Financial Systems Analyst should be at least $70,000
2. Weighted average blending of data
Survey Position Market Median Base Salary Percentage of job
Financial Analyst $60,000 60%
Systems Analyst $70,000 40%
Reference value for your Financial Systems Analyst should be $64,000
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19. Weighting Survey Matches
Most situations “simple averaging” (equal weighting) is appropriate
Under certain (limited) circumstances, sources may be more heavily
weighted to put more emphasis on Industry specific sources or
Significantly better match of survey description to your position
Some organizations weight by the number of companies or
incumbents for each data point
Sample criteria for weighting
Weight 1x: “Meets evaluation standards”
• acceptable source and match
Weight 2x: “Very trustworthy source”
• high quality survey methodology
• large participant base
Weight 3x: “Most relevant source/match”
• highly comparable participants 19

20. Aging Survey Data
Survey pay statistics are typically “aged” to a common point in time
To “standardize” data from
sources conducted at different dates 3% annual Aged Aged to Common Date
Survey A: 1/1/09 data x 1.0450 7/1/2010
Survey B: 4/1/09 data x 1.0375 7/1/2010
Survey C: 7/1/09 data x 1.0300 7/1/2010
To position pay recommendations to be competitive at a certain point in time
Pay policy or ranges effective
Jan 1 July 1 Dec 31
Lag/Lag Data Aged to Lead/Lag Data Aged to Lead/Lead
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21. Communications
Make every effort to clearly communicate your
compensation plan to all employees. However,
understand that the compensation plan is a two-way
responsibility.
 Managers and supervisors are expected to explain and answer
questions pertaining to the plan.
 And to communicate salary information to employees
– Salary range for current position
– Salary range for next likely position
 Employees are expected to understand plan details and put forth
behaviors that will result in expected performance. When
uncertain about plan practices, employees are expected to ask
for further explanation or information.
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