1. Agenda • Introductions • Project Objectives • Project Steps
• Project Timeline
• Q&A
• Position Information Questionnaire Addendum 2

2. About the Hay Group
• Global Human Resources Management Consulting Firm
• 2,000 Employees Worldwide
• 9,000 Clients in Various Industries
• Partners with Clients to Implement Human Resources
Strategies which Align with Business Objectives
• Leader in Compensation Assessment and Design 3

3. Project Objectives Assess New Jersey Institute of Technology’s current
position classification program and make recommendations to ensure that it enables pay in an equitable and competitive manner.
NJIT’s current classification program has not been formally
reviewed in a number of years…concerns have developed about:
comparability of roles and job value across the organization,
turnover in certain areas, and the increasing complexity of work. 4

4. Project Objectives
Benchmark sample of 80 positions (both aligned and non-aligned)
selected to encompass a representative sample of titles and job levels
in the following functional areas:
Finance and Budget
North Jersey Transportation Planning Authority
Information Technology 4

5. Project Objectives
Recommend modifications to the design of the current program
to ensure that pay structure:
Reflects job value and contribution in a consistent methodology
Achieves desired and appropriately competitive market targets
Note: There will be no reductions in pay as a direct result of this study
nor do we anticipate wholesale increases in compensation levels. 4

6. Step 1: Conduct Employee Orientation Sessions
Two sessions to familiarize NJIT employees with the objectives and steps in the process, answer questions and distribute position information questionnaires. 5

7. Step 2: Conduct Interviews
Interviews will be conducted with the defined area Division Heads and Human Resources to understand NJIT’s:
Mission and Strategies
Job Roles and Challenges
Compensation Philosophy and Issues
Current Pay Structures and Processes
I:/GKN0524.ppt 5

8. Step 2: Review and Update Job Documentation
Classification and corresponding compensation parameters should be linked to job content - in order to fairly “size” the benchmark positions at NJIT:
Employees will complete a position
information questionnaire to provide
current information on job
accountabilities, requirements and
competencies.
Managers will review, comment on
and approve the completed
questionnaires.
New Jersey Institute of Technology
Expertise
Position Information Questionnaire 6

9. Step 3: Evaluate Jobs
Hay will train a committee comprised of NJIT employees in
Hay’s proprietary job measurement methodology. Committee
members will include senior management and select
representatives from:
• Human Resources
NJIT currently uses a job measurement
approach that is similar to Hay’s
methodology. 7

10. Step 3: Evaluate Jobs (Cont’d)
A subset of the Committee will work with Hay to evaluate the
benchmark positions over a four day period. Hay’s facilitation
will ensure:
An objective process is applied to all jobs
Evaluations are consistent with external references
and standards 7

11. Step 3: Evaluate Jobs (Cont’d)
Quality Control….
The Committee’s evaluations will then be reviewed with the
Division Heads to ensure that the relative importance of jobs
has accurately been reflected. 7

12. Step 3: Evaluate Jobs (Cont’d)
Hay’s Methodology is the most widely used process in
the world:
• Measures jobs to reflect their relative weight in the organization
• Provides means to assess pay across different
market/functions
• Evaluates jobs and not people
• Not based on performance, title, writing skills
or current salary 7

13. Step 3: Evaluate Jobs (Cont’d)
Hay’s Job Evaluation Methodology values all jobs
against three factors:
Know-How
Problem Solving
Accountability 8

14. Step 3: Evaluate Jobs (Cont’d)
Know-How - the sum total of knowledge, however acquired,
necessary for competent job performance:
Technical Know-How
Managerial Know-How
Human Relations Skills 9

15. Step 3: Evaluate Jobs (Cont’d)
Problem Solving - the amount of original, “self”starting” thinking required to analyze, evaluate, create and make conclusions:
Thinking Environment
Thinking Challenge 10

16. Step 3: Evaluate Jobs (Cont’d)
Accountability - the latitude to take action and commit resources and the measured effect of the job on the organization:
Freedom to Act
Impact on End Results
Magnitude (Monetary Value of Impact) 11

17. Step 3: Evaluate Jobs (Cont’d)
The result of the job evaluation process is a ranking of positions
from top to bottom: 12

18. Step 4: Conduct Internal Equity Analysis
Internal consistency of pay levels can be assessed by matching dollars to points:
Base Salary Practice Internal Equity Assessment $
Points 14

19. Step 5: Conduct Market Pricing Analysis
Njit’s pay levels will then be compared to appropriate competitive markets e.G., Regional companies, education sector, not for profits...
140
120
100 80 60 40 20
90th Percentile
75th Percentile
ABC Pay Practice
Average
Annual Dollars (000’s)
25th Percentile
10th Percentile
240
480
720
960
Client Points 15

20. Step 6: Present Report
Hay will prepare a final report of findings and recommendations for NJIT Executives and Human Resources that will cover:
Assessment of internal equity
Results of market pricing analysis
Adjustments to classification and/or compensation structure
Cost of implementing changes
Impact of changes on current processes and bargaining agreements
Hay will review the results of the study with NJIT Human Resources and Division Heads from the Benchmark groups . 16

21. Step 7: Provide Feedback to Employees
Once NJIT has had the opportunity to review Hay’s report, NJIT will present a summary of the findings and recommendations to all employees involved/impacted by the study. 16

22. Project Timeline Project milestones Completed By
• Conduct employee orientation
• Conduct interviews
• Employees complete questionnaire and send to supervisor
• Supervisors review questionnaires, revise and send to NJIT Human Resources
• Train committee
• Evaluate benchmarks with committee
• Conduct compensation analyses
• Present findings and recommendations
• Feedback to employees
Completed By
December 10th
December 18th
December 24th
January 2nd
Mid/late January
Late January
February
February/March
March 17

23. Benchmark Review of Compensation
Employee Orientation
December 10, 2001