Job Grades & Salary Ranges,Compa-ratios (CR),a compa-ratio (comparative ratio) is a measure of the extent which the average salaries in a grade deviate from the target salary. it is used to compare actual averages with the target salary to indicate the extent which salary levels are high or low. the formula for calculating a compa-ratio is: Average of all salaries in the grade - x 100 Midpoint of the salary range a compa-ratio of 100 indicates that the average salary is aligned to the midpoint of the salary grade and no corrective steps need to be taken.,Compa-ratios (CR),a compa-ratio of 80 would indicate a need to investigate why average salaries were low and possibly no longer competitive. a compa-ratio of 120 would suggest either there were a lot of long-service staff or that staff were being overpaid, and that increases needed to be modified. compa-ratio analysis can reveal a situation where earnings drift has taken place.,Competitive Posture (CP),Competitive Posture is a measure of how competitive the salary is with respect to a given market benchmark. Competitive Posture can be used to measure the competitiveness of both companys or individuals salary competitiveness in the market Competitive Posture for a company is computed as: CR = Average of all Salaries in a given Job Grade Market Benchmark Salary Competitive Posture for an individual is computed by: CR = Salary of the individual Employee Market Benchmark Salary,Salary Administration,Minimum Salary Points 1. Minimum salary for the grade 2. Minimum for Job In the market 3. Set compa-ratio at 1 .00 4. Overlap between 60% to 80% 5. Avoid leapfrogging tendencies 6. Allow for realistic minimum,Salary Administration,Maximum Salary Points 1. Maximum salary for the grade 2. Maximum for job in the market 3. Keep salary range short (8 - 12 years) 4. Maxmin ratio between 1.5 to 2.0 5. Set compa-ratio at 1.00 6. Allow for realistic maximum,Salary Administration,Maximum 1. Maximum salary for the grade 2. Maximum for job in the market 3. Keep salary range short (8 - 12 years) 4. Maxmin ratio between 1.5 to 2.0 5. Set compa-ratio at 1.00 6. Allow for realistic maximum,Minimum 1. Minimum salary for the grade 2. Minimum for Job In the market 3. Set compa-ratio at 1 .00 4. Overlap between 60% to 80% 5. Avoid leapfrogging tendencies 6. Allow for realistic minimum,Minimum And Maximum Points,Streamlining of Salary Ranges (Executives),Effective 1 January 1995,* Most typical value corresponds to the working midpoint of the range Derived from annual base salary # Dispersion factor of +/ - 25% around Q1 values,Job Reference Levels,The reference job description prepared to assist non-hay evaluated companies with job matching, are each evaluated and quality assured against Hays standards. The evaluations are then slotted into the relevant job unit range which forms the reference levels. These reference levels and corresponding job unit ranges are now standard throughout all Hays main remuneration surveys and are detailed below.,Job Reference Levels,Salary Administration,Determining Entry Salary 1. Market value 2. Candidates existing salary 3. Basic qualifications 4. Additional qualifications 5. Relevant working experience 6. Related working experience 7. Completion of national service 8. Geographical location of company 9. Nature of industry (dirty or hazardous) 10. Minimum salary for job grade 11. Salaries of existing incumbents 12. Re-grossing annual salary,Incremental Systems,Incremental systems vary from rigid procedures with fixed and predetermined movements through a scale related to age, service in the company or service in the job, to flexible systems where management exercises complete discretion over the award and size of increments without any guidelines. Between the two extremes there is a middle ground of semi-flexible systems.,Fixed scales with automatic progression where individuals move through jobs or grades by predetermined steps related to age or service, these could be rate for age scales. Fixed scales are criticized because they do not give enough incentive to effort and the improvement of performance-promotion might only be an award in the longer term, if at all. They are defended because they can be operated with complete impartiality- many people, especially civil servants, question the possibility of determining a fair relationship between merit and reward where the only method of measurement is the subjective opinion of someones boss.,Incremental Systems,Fixed scales with limited flexibility where it is possible to give double or even triple increments to high flyers and withhold increments for poor performers. Semi- fixed scales which allow automatic progression to a merit bar at which progression for some people may stop while other can advance at differ