Pay Reform Perspectives in Jordan Amman-Jordan September 2006 Ministry of Public Sector Development

 Autonomous Authorities have much higher salary scale, plus variation in pay across line ministries  Around 15% of the employees are hired on projects and as daily wages workers  Pay scale in civil service based on educational qualification and length of service  Responsibility in not appropriately rewarded Current Status

 Lack of incentive schemes to attract and retain talents  Small differentials between highly skilled and unskilled staff  Low base salaries and low core wages  Ad hoc pay adjustments every now and then  Changes in allowances strongly influenced by pressure groups  Reduce anomalies and ensure the equitability across job families  Develop analytical job classification and job evaluation schemes Current Status

Objectives :  Develop effective organizational structure for the concerned governmental entities  Enable line ministries to attract and retain qualified employees  Reduce anomalies and ensure the equitability across job families  Develop analytical job classification and job evaluation schemes

Objectives :  Develop a systematic pay and grading structure that is: - compatible with all human resource policies - remunerates based on relative worth of jobs - addresses all aspects of remuneration - consolidates allowances with salary - strengthen control over remuneration - introduces de-compressed pay differential

-A formal and systematic comparison of jobs in order to determine the worth of one job relative to another -The comparison results in a salary hierarchy -Compensable factors are fundamental elements of a job Job Evaluation:

-Obtain job information -Select raters and jobs -Select compensable factors -Rank Jobs (ordering by importance, weighting, paired comparison) -Group jobs to determine the appropriate salary level -Combine ratings Job Evaluation Methods: 1: Ranking

Advantages -Appropriate for small companies (few jobs) -Simple to administer Disadvantages -Difficult for large #s of jobs or new job -Rank judgments are subjective -No standards used for comparison Job Evaluation Methods: 1: Ranking

-Rates categories of jobs into groups. -Groups called classes if jobs are similar -Called grades if groups contain different jobs of similar difficulty Job Evaluation Methods: 2: Job Classification

Advantages -Simple -New jobs can be classified more easily than the ranking method Disadvantages -Classification judgments are subjective -The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees. -Some jobs may appear to fit within more than one grade/ category Job Evaluation Methods: 2: Job Classification

-It is a more quantitative method -Identified compensable factors (skills (experience, education, ability), effort (physical and mental), responsibility (fiscal and supervisory) and working conditions (location, hazard, extremes in environment) -The degree to which each of these factors in present -Assume five degree of “responsibility -Most widely used method Job Evaluation Methods: 3: Point Method

Advantages -The value of the job is expressed in monetary terms -Can be applied to a wide range of jobs Disadvantages -The pay for each factor is based on judgments that are subjective -The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees Job Evaluation Methods: 3: Point Method

-A widely used method to rank jobs by variety of skilled and difficulties, then adding these to obtain a numerical rating for each job -Rank each job several times- once for each of several compensable factors Job Evaluation Methods: 4: Factor Comparison

Advantages -The value of the job is expressed in monetary terms -Can be applied to a wide range of jobs -Can be applied to a newly created jobs Disadvantages -The pay for each factor is based on judgments that are subjective -The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees Job Evaluation Methods: 4: Factor Comparison

Main Outcomes :  Revised organizational structure  Job descriptions of all positions  A standardized pay and grading methodology  A complete job classification, and job evaluation of all existing jobs in the civil service  A new integrated pay and grading structure  A computer based system that has a pay modeling capability for conducting job evaluations for all public service jobs  Mechanisms for reviewing the pay and grading structure.

Areas of Concern :  How to guarantee effective organizational structures with no exaggerations  How to ensure controlled promotion mechanisms in the absence of credible competency assessment tools  How to address some job titles with different responsibilities due to the difference of volume and size of the entity  What are the most appropriate factors  How to mange financial ramifications  How to guarantee the credibility of the raters

Thank You