Job Matching Training

1. Job Matching Training Presented to: LMC’s SurveyNavigator Coordinators April 10, 2014 Presented by: Shawn Wachtel, Director of E-Solutions The Waters Consulting Group, Inc.

2. Presentation Roadmap Job Matching Defined Importance of Job Matching Main Factors to Consider Most Common Mistakes Frequently Asked Questions

3. Job Matching Defined- Concrete: Abstract: Job Matching is the process of pairing a survey title’s summary and requirements to the content, responsibilities, qualifications and duties of an internal position. An effort to minimize the subjective nature of a Job Title (through standardization) in order to make comparisons of objective salary data.

4. The Importance of Accurate Job Matching- Value: Accurate job matching is the cornerstone from which a successful survey is built. It is absolutely critical to the validity of the published data. The entire value of the survey rests on this process being performed with the highest degree of accuracy. This value is fully realized when participants conduct their market comparisons.

5. Main Factors of Consideration- Match Summaries; Not Titles Consider Each Survey Title Independently • Ignore Incumbent’s Qualifications • The 75% Rule

6. Consider Each Survey Title Independently- Read each survey job summary individually and consider which of your positions is best described. Survey job titles and organization job titles both in a series of (3) doesn’t necessarily mean they are all accurate matches. Please review each summary individually. Ex.- Equipment Operator I, II & III- A good match may be made for Equip Op I, however the survey title for Equip Op II may match your Equip Op III.

7. Match Summaries; Not Titles- Base matches on the duties and minimum education/experience requirements of your position, not on the titles. If you have a position titled “Utilities Clerk I” that matches the duties and requirements of the “Secretary II” survey job summary, you should match your position to “Secretary II”. Ensure you are basing the match on regularly performed duties as opposed to temporary ones.

8. Ignore Your Incumbent’s Qualifications- Base matches on the duties and minimum education and experience requirements of your position, not on the qualifications of the incumbent(s) in the position. The individual incumbent’s education and experience may differ from that which is required to complete the responsibilities of the position.

9. The 75% Rule- Rule of Thumb: If the duties and qualifications of your position are at least a 75% match to the survey job summary and requirements, your position is considered to be an equal match.

10. Most Common Mistakes- Matching by Job Title Instead of Job Content: Ex. 1- You may look at the survey title of Finance Director and automatically assume that your Finance Director position is a good match. Upon reading the survey job summary it is determined that the survey job relates to the top finance executive in the organization while your Finance Director is the second level finance position, as it reports to the CFO.

11. Most Common Mistakes Continued- Forcing Matches: Ex. 1- A Lead Water Operator who occasionally performs the duties of the Water Systems Supervisor (in his/her absence) should not be matched to Water Systems Supervisor. Ex. 2- A Lead Water Operator who temporarilyacts as the Water Systems Supervisor (while the job is vacant) should not be matched.

12. Frequently Asked Questions- How should I differentiate between positions? When performing job-matching, a safe approach is to read a job summary first and ask yourself if it represents at least 75% of the duties of a position in your pay structure. If it does, then chances are it is a good match and you should look at the qualifications to determine the degree of match. If more than one survey position appears to be a good match, for a particular position, based on the summary and qualifications then you should review the “job level’ as an aid in discerning between the two survey titles.

13. Frequently Asked Questions- What should I do if the job summaries are not an exact match? It is not unusual for a job not to be an exact match to a survey job summary. Survey job summaries are generic descriptions that describe the essential functions of a job, rather than the application of that job in various organizations. If the duties of your position are essentially the same as those of the survey job summary, but your requirements differ, your position may be an equal, high or low match. Please see the following slide for some examples of levels of match:

14. Frequently Asked Questions- Accountant Example:

15. Frequently Asked Questions- Accountant Example Continued: As you can see from this example, having higher education requirements and lower experience requirements, or vise versa, may result in an equal match, if the duties of your position are essentially the same as those outlined in the survey job summary. If your organization does not have formal pay ranges, leave that section blank. What should I do if my organization doesn’t have formal pay ranges?

16. Frequently Asked Questions- What should I do if my base pay is above of the established pay range? If base pay is above range maximum for all or most positions because all employees received pay increases, but pay structures were not adjusted, report the actual base salaries. If an employee’s pay is frozen above the established pay range due to demotion, reclassification, restructuring, or other similar reasons, report the maximum of the pay range as the base salary. Base pay above the maximum of the range, particularly if it is considerably higher than the maximum or if it applies to multiple employees in a position, may skew the survey average.

17. Frequently Asked Questions- How should I report part-time employees? Data for part-time employees should be entered as an hourly rate, as shown below. The annual amount will be calculated by the system based on the hours worked per week. Status = P, Base Salary = $12.00, Hours Per Week = 20, Pay Frequency = H Note: if base salary is entered as an hourly rate, pay range minimum/midpoint/maximum should also be enter as hourly rates.

18. Frequently Asked Questions- How should a smaller organization approach matching? Survey job matching may be difficult for smaller organizations, as employees often serve in more than one role. For example, an Accountant may also function as a Purchasing Agent. In these cases, it is important to determine the amount of time spent on each major function. If the position’s job duties match the duties and requirements of two survey job summaries, the decision regarding appropriate match is based on the percent of time related to each, please see the following slide for examples:

19. Frequently Asked Questions- Smaller Organization Example: Accountant –75% / Purchasing Agent – 25% – Equal Match to Accountant. Accountant– 50% / Purchasing Agent – 50% - Not a good match to either survey position. When you pull data from the survey to determine the market value of your position, is it appropriate to combine data from both survey jobs, prorated based on the percentage of time related to each, but is not appropriate for survey matching.

20. Frequently Asked Questions- Should temporary and seasonal workers be included? Temporary and Seasonal workers should NOT be included while performing the Job Matching function. This has the potential to skew the data. That being said, you may use a position’s salary data to make a comparison for what you are paying a temporary or seasonal worker. Should I report employees’ salaries that are above the range max due to longevity pay? We are focused explicitly on “Base Salaries”. Longevity pay is in addition to an employee’s base and therefore excluded for the purpose of this survey.

21. Frequently Asked Questions- How are job titles selected for the survey? LMC is the ultimate authority regarding which titles are included in the survey. The Waters Consulting Group makes recommendations to titles in order to make it easier to discern between titles. A link is provided on the website that allows you to propose new titles and summaries you would like to see in the survey. How is the data “aged”? Data is “aged” from the effective date through the date you select. For the 2014 Survey; 2.90% (APR) will be the aging percent. We arrived at this figure by reviewing the figures released by ‘World at Works’ data as well as the CPI index. Example: Effective Date: 1/1/2014 Date determined by user: 7/1/2014 [ (2.90% / 12) * 6 ] * Salary

22. Frequently Asked Questions- What data scrubbing techniques are used to ensure integrity? Interquartile Range- This is an industry standard in statistical analysis. It is a method used to identify “outliers” (data points that skew the data set). The equation is as follows: IQR = (Q3 – Q1) If [ X > < ± (1.5 * IQR) ] then the data point is rejected. How do we update when we have mid-year raises? This depends on the nature of the raise. If it is a percentage raise for all employees it will be easiest to send a request asking for all positions to be increased by X%. If only certain positions are receiving increases, you can login to the Coordinator Account and update those positions accordingly.

23. THANK YOU COMPENSATION CONSULTING EXECUTIVE RECRUITMENT • Classification and Compensation Studies • Alternative Compensation Programs • Innovative Performance Management Systems • Training and Development Seminars • Human Resource Issues and Compliance • Candidate Profile Development & Definition • Candidate Outreach & Identification • Candidate Development • Candidate Background & Identification • Compensation & Contract Negotiation E-SOLUTIONS DIVISION