Compensation and Benefits Times

Job Pricing and Pay StructuresHURD 766

By Sade Demery

Good news: U.S. economy adds 223,000

jobs

Construction and health care each added 45,000 jobs. Business services -- marketing, accountants, consultants -- was the best

performer in April, adding 62,000 jobs.

What is your worth?Internal vs. external equity• Each organization has a hierarchy of jobs based on, among other things,

complexity of each job, required education, skills, licensing or other essential job elements. Human Resources and Compensation managers are specially situated to observe an organization from above and see the ebb and flow of pay levels within the organization. With this information, you will be well positioned to determine the so-called "internal equity" within your organization - indicating whether jobs are paid fairly and competitively.• But don't stop there. You must be aware of what other firms in your area or

industry are paying for similar jobs. Once this information has been obtained and you have determined that your wage and salary structure compares favorably, you have achieved external equity as well.

Job Pricing• Can be defined as the process to determine the pay/salary values

depending on the job that the employees are performing in the organization.

• i.e. “A manager's salary across industry would be at a certain level in different organizations. But it may vary in different countries or regions within the same country.”

Salary/Pay Structure• Provide a logically designed framework of pay policies within an

organization that can be implemented. They enable the organization to determine where jobs should be placed in a hierarchy, define pay levels and the scope for pay progression and provide the basis upon which relativities can be managed, equal pay achieved and the processes of monitoring and controlling the implementation of pay practices take place.

Grade Vs. Pay Structure

• Grade Structure: contain a sequence or hierarchy of grades, bands or levels into which, on the basis of job evaluation, groups of jobs which

are broadly comparable in size are placed.

• Pay Structure: define the ranges of pay that are attached to grades — pay levels will be influenced by equity and market rate considerations.

Office of Personnel Management (OPM)• The Office of Personnel Management provides policy leadership and

expertise on a variety of Government-wide pay programs for Federal employees, including the General Schedule (GS), Law Enforcement Officer (LEO) Pay Schedules, and the Federal Wage System (FWS).• For more information on the pay tables and related materials posted

on our website, agencies may email Pay-Leave-Policy@opm.gov

General Schedule(GS)• Covers 1.5 million employees• Has 15 grades and 10 steps in each grade covering more than 400

occupations. Pay varies by geographic location.• The law requires a two-part GS pay adjustment in January each year

with pay adjustments based on surveys conducted by the U.S. Bureau of Labor Statistics (BLS).

U.S. Government Pay Structure

Classification & Qualifications- “GS Positions”

This website provides Federal position classification, job grading, and qualifications information that is used to determine the pay plan,

series, title, grade, and qualification requirements for most work in the Federal Government.

Classification & QualificationsThe Classification pages provide:• General information about the classification of

Federal positions• Occupational information• Grading criteria for the General Schedule and

Federal Wage Classification Systems• Draft classification and job grading standards• Subscribe to the What's New in Classification

electronic distribution list to be notified of new classification issuances.

The Qualifications pages provide:• General policies and information on eligibility

and qualifications for Federal occupations• Government-wide qualification requirements

for specific occupations• Draft qualifications standards• A list of occupations that have medical

requirements• Recent issuances of new or revised qualification

standards• Federal Wage System Qualifications

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