You'll use it most in 2 situations:
- On the last day of your initial install, and every 2 years thereafter, when you need to look at the entire organization’s grades and analyze for internal equity.
- When you are creating a new position for your organization, and are thinking about how to grade it.
Analyzing the Entire Organization for Internal Equity
During the initial install process, each supervisor grades their positions. Each one of them may approach the process with a different philosophy, and as a result, might grade slightly differently. To negate this, the Position Evaluation Summary Report serves a crucial role; it allows you and your consultant to analyze for internal equity from top to bottom. This process should be repeated every two years, so that you and your consultant can take new positions and evolved positions into account.
By default, the report lists the positions sorted by grade from top to bottom. If one position has obviously been over or under graded, it should stand out immediately.
Since the positions are sorted by grade, for the most part the columns should be a smooth transition downward. We can clearly see 1 stand out above. This does not mean that compensable factor is wrong, it simply suggests it should be looked at more closely. In the example above, you should examine whether the VP of Retail really has more management scope than the VP of HR and Director of IT. If the answer is yes, then you know that factor is correct and you can continue to look for stand outs.
Grading a new position
When a new position is being added to your organization, you may be tempted to simply market price the position and slip it into the corresponding grade. You should always try to take how it will operate uniquely at your organization into account as well. It is sometimes helpful to look at the position evaluation summary.
Look at comparable jobs
Within the position evaluation summary, look at how comparable positions are graded. Once you have graded your new position, look at positions higher and lower than it and ensure that the tentative compensable factors make sense within that context as well.
Look within the department or underneath a particular supervisor
You may want to look at how a position is graded relative to other positions within the same department or other positions supervised by the same person. This is why we offer position evaluation reports by department and supervisor.
Remember! We're always here to help.
In situations like these, we are always happy to help grade new jobs, re-grade existing jobs, and evaluate the company as a whole.