A position commonly found across a wide range of industries and organizations with similar definitions within the marketplace. Primarily used to make pay comparisons, either within an organization or to comparable jobs outside the organization.
Blended Job/Hybrid Job
A job with multi-functional responsibility for a combination of different areas, often found within the administration and/or operations area of an organization.
A method of grouping a number of similar jobs into only a few job grades with wider salary ranges.
A method of setting compensation that provides equal pay for work of equal value. Often used as a means of achieving parity in pay for employees in jobs with pay traditionally lower than comparable positions.
The relationship of base pay to market expressed as a percentage of the midpoint of the salary range.
Usually in the form of a written statement, the values and principles used by an organization to guide decision-making regarding pay, benefits, and total rewards.
Defined Contribution Plan
A retirement plan in which the employer makes specified contributions but the amount of the retirement benefit is not specified.
A grade family is used to group together job grades for similar titles or jobs in a specific department or branch.
The monetary relationship between jobs requiring comparable knowledge, skill, and ability, as well as education and experience, within an organization.
Systematic study of a job to assess its specifications, its mental, physical, and skill requirements, its relation to other jobs in the establishment, etc., usually for wage setting or job simplification purposes.
Arrangement of tasks in an organization or industry into a limited series of jobs or occupations, rated in terms of skill, responsibility, experience, training, and similar considerations, usually for wage setting purposes. This term, or job class, refers to a single cluster of jobs of approximately equal “worth.”
A written record of the requirements related to a position that describes the basic elements of the job, the responsibilities, authority, and autonomy, as well as, the essential functions of the position and the environment in which the work is to be executed. Also, forms the basis for an appraisal of the employee’s job performance.
Job Evaluation (Job Grading, Job Rating, Job Ranking)
The process of determining the relative importance, or the ranking, of jobs in an organization for wage setting purposes, by systematically rating them on the basis of selected factors, such as skill, responsibility, experience, etc.
A level within an organization’s salary structure, with either a single salary or a salary range associated with it. A hierarchy of categorized positions within an organization. Also may be referred to as salary structure and/or job evaluation points.
One of a series of rate steps (single rate or a range of rates) in the wage structure of an organization’s occupations. Labor grades are typically the outcome of some form of job evaluation, or of wage rate negotiations, by which different occupations are grouped, so that occupations of approximately equal “value” or “worth” fall into the same grade and, thus, command the same rate of pay.
The sum of the market rates reported for a job within a market survey divided by the total number of market rates reported.
The value of similar jobs in the marketplace as reported by salary surveys.
The average of the salaries reported for a specific demographic element or across all demographic elements.
Min, Mid, Max
Min: The minimum dollar amount in a salary range.
Mid: The middle dollar amount in a salary range.
Max: The maximum dollar amount in a salary range.
NAICS (North American industry Classification System)
The standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
On Call Pay
Pay received by employees for being ready to report to work if necessary. Employees receiving on call pay usually are required to be readily available by phone or pager, within a reasonable distance from the workplace, and able to report promptly to work.
A lessening of the difference in pay between workers in different pay grades. Pay compression can be caused by workers receiving across-the-board, flat sum pay increases or by workers at higher pay grades receiving smaller percentage salary increases than those at lower pay grades.
Pay Range/Salary Range
The low, middle, and high end of salary paid for a specific position. It can be based on a variety of factors including type of work and the skills needed to be successful, the level of experience and education needed, internal equity, and market analysis of the average pay for that job.
Point-Factor Job Evaluation
A process that assigns numerical scores to the fundamental elements of a job.
An employee’s compensation that is paid at a rate that is greater than his or her regular rate. It may refer to overtime, shift differentials, or penalty rates.
A term that may be used in varying contexts. For example, it may refer to average level of wages paid by employers for specific occupations in a community or area; or rate most commonly paid; or rate paid to most workers; or rate established by union contracts.
Quality of Work Life Committees
Committees existing at multiple organizational levels within a company charged with developing changes to improve performance and the quality of employees’ work life. If committees are established as part of a labor-management agreement they do not address contractual issues such as pay and benefits.
The difference between the minimum and maximum dollar amounts within a salary range.
The rate at which employees leave a company, either voluntarily or involuntarily.
Wages received by an employee for his vacation period. See also Paid Vacation. Pay in lieu of vacation – vacation pay to workers who do not take the actual time off, paid in addition to wages for time worked.