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JOB EVALUATION AND OCCUPATIONAL SPECIFIC DISPENSATIONS: A NEW PERSPECTIVE KZN HR CONVENTION 17 SEPTEMBER 2008

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JOB EVALUATION AND OCCUPATIONAL SPECIFIC DISPENSATIONS: A NEW PERSPECTIVE KZN HR CONVENTION 17 SEPTEMBER 2008. OVERVIEW. DEFINITIONS OCCUPATIONAL SPECIFIC DISPENSATIONS (OSDs) JOB EVALUATION: REFINEMENT OF THE EQUATE SYSTEM. DEFINITIONS. JOB EVALUATION (JE)

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JOB EVALUATION ANDOCCUPATIONAL SPECIFIC DISPENSATIONS: A NEW PERSPECTIVEKZN HR CONVENTION 17 SEPTEMBER 2008

overview
OVERVIEW
  • DEFINITIONS
  • OCCUPATIONAL SPECIFIC DISPENSATIONS (OSDs)
  • JOB EVALUATION: REFINEMENT OF THE EQUATE SYSTEM
definitions
DEFINITIONS
  • JOB EVALUATION (JE)
    • A process aimed at determining relative differences between jobs within an organization by measuring the size or weight of jobs
    • In SA Public Service JE main determinant of salary attached to specific jobs – facilitate equal pay for work of equal value
  • OSD
    • Dispensations for specific occupational categories which include unique salary structures, centrally determined grades and job profiles, career progression opportunities and other employment practices determined by the MPSA
osds background
OSDs: BACKGROUND
  • Situation post-1999:
    • Single salary structure applicable to all occupations
    • Prescribed JE system to determine where jobs slot in salary structure –decentralized application
  • Personnel Expenditure Review 2006 - key recommendations:
    • Improve job evaluation and grading practices – to ensure equal pay for work of equal value
    • Broad occupational differentiation in relation to remuneration - market relatedness
    • Greater degree of performance related pay
    • Remuneration and career pathing of professionals, specialists and scarce skills occupations should be prioritized
osds background cont
OSDs: BACKGROUND (cont)
  • Remuneration Policy Framework 2007 – provided for the introduction of OSDs
  • PSCBC Resolution 1 of 2007 – occupations, details, timeframes, etc
elements of osds
ELEMENTS OF OSDs
  • Aim is to implement customized dispensations for selected occupations to improve departments’ ability to attract and retain skilled employees
  • Key elements – centrally determined for each occupation:
    • Unique salary structures
    • Grading structures and broad job profiles
    • Career pathing, including grade progression opportunities, based on competencies, experience and performance
    • Pay progression within the salary levels
    • Competency requirements per grade/post – qualifications, statutory requirements, experience, etc
principles underpinning osds
PRINCIPLES UNDERPINNING OSDs
  • Remuneration structure specifically tailored for each occupation
  • Longer salary scales and overlaps between scales (where applicable) to facilitate adequate salary progression for employees who choose to remain in production levels instead of moving into supervisory/managerial posts
  • Results of job evaluation are taken into account
  • Implementation do not result in a general increase for all employees
principles cont
PRINCIPLES (Cont.)
  • Career pathing model – not automatic salary increases but a forward looking plan to systematically increase salaries after pre-determined periods based on specific criteria such as performance, qualification, experience, etc.
  • Entails progression to higher salary levels without competing for vacancies or promotion to higher vacant posts – qualifying periods and criteria contained in each OSD – also accelerated progression for sustained above average performance
  • Dual career paths where applicable
implementation of osds
IMPLEMENTATION OF OSDs
  • Issued as determination by the appropriate Executive Authority (i.e. by Minister for the Public Service and Administration in respect of Public Service Act employees) once collective agreement is concluded
  • Apply to all employees in the specific occupation
  • Deviations only allowed after approval by the appropriate Executive Authority
  • Employees’ salary positions will not be negatively affected on translation
  • Impact on JE – less jobs need to be evaluated in future
advantages of osds
ADVANTAGES OF OSDs
  • Facilitate recruitment and retention of skills
  • Improve consistency between departments:
    • Consistent grading of posts derived from centrally determined benchmark job descriptions and prescribed grading levels – enhances equal pay for work of equal value
    • Centrally determined salaries attached to each grade
    • Centrally prescribed skills/competency requirements
  • Clear career paths and progression opportunities
  • Curtail job hopping between departments (in the same occupation)
  • Reward performance
  • Employees may remain longer at production levels
background
BACKGROUND
  • Equate was customized for the Public Service in 1996/97 by KPMG and has been in use since 1999.
  • Previous investigations into the system:
    • 2002 - Deloitte and Touché - found Equate to be sound and effective JE system
    • 2006 - As part of PER PWC recommended that Equate be retained but parts of system need to be refined and updated
  • Remuneration Policy Framework – Equate to be retained but certain elements of system and process need to be reviewed
challenges identified
CHALLENGES IDENTIFIED
  • Decentralized application
    • Inconsistencies within/between depts
    • Compliance with PSR and other prescripts
  • Lack of monitoring and evaluation mechanism
  • Time required to evaluate jobs
  • Elements of current system outdated
    • Parameters of certain questions
    • Technology base
  • Gaps in system
  • Perceptions about job evaluation:
    • Should ensure market-related/adequate salaries
    • Other systems “better”
project to refine the system
PROJECT TO REFINE THE SYSTEM
  • Objectives:
    • Determine whether Equate fully caters for professional and specialist jobs – if not develop proposals to address this
    • Identify elements in Equate that need to be updated and refined and develop proposals to address this
    • Determine whether there is justification to utilise a second job evaluation system in the Public Service – if so, recommend appropriate systems and identify jobs to which it should apply
project to refine the system cont
PROJECT TO REFINE THE SYSTEM (cont)
  • Investigate and develop proposals to improve identified parts of the job evaluation process and system:
    • Creation of a central database of job descriptions and grading results
    • Consider current overlaps between job weight ranges
    • Development of proposals on the monitoring and evaluation of job evaluation
    • Refinement of the existing co-ordination mechanism for upgrading of occupations
  • Adjust the Equate software as required based on the outcome of the investigation
  • Consider web-enablement of Equate
progress to date
PROGRESS TO DATE
  • Service providers appointed
  • Conducted study using mainly specialists and professional jobs to compare Equate results to results obtained with two other systems, namely Hay and Calibr8.
  • Departments were approached to submit inputs on JE issues that require attention.
  • Initial report submitted – main findings:
    • Equate is sound but needs to be fine-tuned and updated
    • Equate does not favor administrative and management over specialists/professional jobs (internal equity)
progress to date cont
PROGRESS TO DATE (Cont)
  • A number of recommendations were made of which the most important are the following:
    • Equate to be retained
    • If another system is to be considered, should only be used in exceptional circumstances and strictly controlled
    • Regulations to be amended to establish a central quality assurance and standards settings procedure
    • A benchmark job evaluation database to be established
    • Expert group sessions to be held to workshop possible changes and/or enhancements of Equate
    • Communication strategy on job evaluation to be developed
  • Work on the amendment of the system largely completed – proposed amendments workshopped with departments and provinces
  • Next steps:
    • Amendment of rules base and software (including web-enablement)
  • Implementation of refined system to commence by second quarter of 2009.
anticipated benefits of refined system
ANTICIPATED BENEFITS OF REFINED SYSTEM
  • Improved consistency in the evaluation and grading of jobs between departments
  • Quicker and more appropriate evaluations
  • Improved monitoring and evaluation
  • Integration with new HR system – improved management information and reporting
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