When developing a salary compensation system, it is important to keep your ultimate goal in mind, get the most value for your payroll dollar. In order to do this you must be sure that the system you are developing truly reflects the thinking of your organization. IMA uses a point factor system, the National Position Evaluation Plan. The NPEP system is the most widely used evaluation system in the country. We can also develop a system where the culture of your organization may require a unique system.
Position Analysis, Position Description and Position Evaluation: These are the steps in the National Position Evaluation Plan.
Position Analysis: Analyzing a position involves gathering detailed information about it. Much of the data comes from employees themselves, through a questionnaire supplied by IMA. In it the employees define their responsibilities and provide information about the importance and frequency of each. The supervisors then review the questionnaire and, if clarification is needed discusses it with the employee.
Position Description: Next, the supervisor presents the questionnaire to an independent position analyst, a consultant from IMA whose views are objective. The analyst performs step 2: writing the position description. Each position is carefully described in terms of its duties and responsibilities.
Position Evaluation: During the evaluation process, a position's duties and responsibilities are measured in terms of 9 factors for salaried employees and 11 factors for hourly employees. Two additional factors are applied to supervisory positions. These factors have a bearing on almost every type of work. Together, they help the analyst view the full range of a position's requirements. All factors are subdivided into degrees. The make it possible to measure the extent to which a given factor applies to a specific position.
Salary Surveys: IMA conducts the most comprehensive survey package in the New York/New Jersey metro area. A unique aspect of these surveys is that they assign a Labor Grade to each position surveyed based on the NPEP and develop a salary range for each grade, making it easy for you to update your grades each year.
Implementation: Once the grade and ranges have been determined, comparatios will be calculated by individual employee, department, and other subgroupings in order to compare the current pay to the proposed midpoints. IMA will develop with the Client a plan to correct salary inadequacies, consistent with budgetary constraints.