Job Valuing is Regaining Velocity
A recent W@W Workspan published article (September, 2015) titled, “JOB EVALUATION - Relevant, Robust and Reimagined” was written by Hay Group executives Phil Johnson, Tom McMullen and Mark Royal. The article began with an historical perspective of job valuing being a popular job measurement tool from the 1960’s to the 1980’s. The authors noted that since the recent economic downturn and slow recovery period, job valuing has regained momentum as a valuable management process in determining relative internal job worth as it relates to its contribution and impact on company goals and outcomes. Johnson, McMullen and Royal made the following insightful statement in their job valuing article, “Many organizations woke up to the fact that a process that analyzes the work that needs to be done can provide much more than the way to link to market and determine appropriate pay levels.”
DBSquared’s DBCompensation software has a proven proprietary job valuing system with a 1985 origin. With this efficient and easy to use HR technology, job descriptions and job valuing are simultaneously developed and displayed in a job evaluation chart. The job valuing chart offers a high-level job fine-tuning and valuing feature and a link to automatically align final job descriptions with final job values. DBSquared’s compensation professionals support the philosophy of validating internal job valuing and proposed pay structures with external market pay comparisons. The combination of internal job valuing and external market pay analysis produces a more precise and comprehensive pay structure where all jobs have a value on the company’s internal pay line and pay structure.
Recently, we had a VP of HR and Administrative Services of an electric utility company make a comment about the professional integration of internal and external job valuing processes in the DBCompensation software. He was pleased with the recent job classification and compensation study and how the software simplified the process without losing creditability, validity and transparency.
| HRSoft and DBSquared have partnered on the|
development of a compensation program whitepaper:
“THE HR GUIDE TO A COMPLIANT, EQUITABLE AND
COMPETITIVE COMPENSATION PROGRAM”
The whitepaper is available here.
| BABY BOOMERS ARE LEAVING 4TH PAY QUARTILE IN DROVES ?|
YOUNGER EMPLOYEES ARE HAPPY ABOUT THIS MASS EXODUS.
Baby boomer employees have been holding off retiring due to economic conditions and its impact on retirement plan holdings. In addition, the baby boomers are reaching their late 60’s and early 70’s and the imposing 70.5 age retirement plan fund distribution penalty.
There will be a mass exodus of baby boomers from the workforce during the next ten years. Most of these baby boomer employees with long employment tenure are paid in the upper 4th quarter of their respective employer’s pay scales. This huge pay bubble will be exiting the pay scale bell curve and it will be fascinating to see how employers will redistribute the baby boomer wages.
Will employers re-distribute these exiting wages back to employees in the lower end of the pay scale, back-fill with employees paid in the 2nd and 3rd quartiles, pay for increasing health care expenses or allow these wages to drop to the bottom-line? This will be an interesting compensation trend to follow from 2015 to 2025.
HAPPY RETIREMENT FOR THE BABY BOOMERS!
| Free DBCompensation Demo |
Contact us to schedule an online demo that will allow you to see the DBCompensation application. We would be happy to answer any questions that you may have and to tell you more about our Total Solution.
Please contact Blair or Bruce Johanson to schedule an online demo for you and your team.