Pay Structure Terminology

As with every other organization function, due to specialization, the human resource function has its own set of terminology or jargon. Sometimes there are differences in interpretations, so it is useful to develop a glossary for use with related policies.

Salary Formula 9A

Source: MIT HR website

Rate Ranges Different employees in the same job may have different pay rates.
Benchmark Jobs or Key Jobs A representative job within the organization that is commonly found in external organizations and can be used for ay comparisons; thus enabling market-pay survey data to be obtained. It also describes a job that is similar or comparable in content across businesses in an organization.
Non Key Jobs These are jobs unique to organizations and cannot be directly valued or compared through the use of market surveys.
Market The area from which job applicants are being recruited.
Market Reference Point Compensation philosophy in which an organization chooses to benchmark to a percentile of the market in order to compensate job classifications within the organization.
Market Reference Job Title Job title, content and associated market compensation related to classifications in the external employment market.
Job Title Label used to describe a set of specific activities, responsibilities, duties and tasks.
Working Title A customized, descriptive title that provides a greater understanding of the individual employee’s responsibilities and scope within the assigned market job title organized within an assigned career family, career band, and job role. Often based on current industry/profession standards.
Job Role A broad category corresponding to the primary purpose of a job and its relationship to other jobs. Example: Professional, managerial, executive leadership
Job Family A group of jobs in which the work performed is of a similar nature (common characteristics).
Job Sub-family A group of jobs in which the work performed is of a similar nature and within a similar function.
Career Family A broad meaningful grouping of jobs commonly clustered within a career emphasis. Content of defined work within a job is the key criteria in determining relationship to this familial structure. The level of responsibility, skill or competence to perform the job can vary, but the fundamental nature of the activities and the basic skills required are similar.
Career Band A sub-set of jobs commonly found in the market with a recognized specialty, grouped within the larger context of a career family.
Job Slotting Review and evaluation of a job, its duties and its tasks against other similar/like positions already in place in an organization in an effort to appropriately position the job in the proper Career Family, Career Band, Job Role and market referenced job title.
Job Classes Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purpose.

 

Classes contain similar jobs

Job Grades Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purpose.

 

Grades are jobs that are similar in difficulty but otherwise different.

Wage Curve It is the curve in a scatter gram representing the relationship between relative worth of jobs and wage rates.

Source: University of Michigan HR website

 

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