Market Research : Evaluating And Determining The Market Rates For Benchmark Jobs

1125 WordsMay 13, 20175 Pages
Market Research: Market- pricing is the other method used in combination with job classification to determine pay. This method outweighs job classification and focuses on having a market- based structure. Valuing jobs based on the external competitive worth it the primary focus to evaluating and determining pay of jobs in the compensation structure. With this method, jobs are placed into a grade structure based on the competitive pay of the job. JU jobs are matched to similar jobs in the relevant market and valued by comparing them with comparable jobs. To initiate this process, it is important to start with determining the market rates for benchmark jobs. Benchmark jobs are fundamental to establishing the pay grades and structure…show more content…
A specific formula is used to determine the weighted mean and should be used when evaluating salary data. Compensation Plan: Job grades have been created after conducting both job classification and market data on many benchmark jobs at JU. The benchmark jobs used conform more than 50% of JU jobs and range from different departments, job families, and pay levels. After all the market data is collected, the compensation team group’s positions that have similar market salary ranges together into the same pay grade. Then, market banding is used to determine the grades used for the pay structure. The mid- point of the pay structure that has been determined will be in the 50th percentile. Upper management, based on the university’s philosophy has decided to meet the market at the 50th percentile for all positions except for faculty and key management roles. For these positions, it has been decided that the university will lead the market at the 75th percentile. Executive and adjunct pay will not be part of this compensation structure and will be treated separately. To determine the grades, positions with similar market salary data are grouped together into the same pay grade. The same pay structure will be used for both except and non- except employees however, non- except employees will have hourly wages. To calculate the hourly wage

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