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Mercer International Position Evaluation TM System (IPE) v3.1 Training Session for APCBF
MERCER
Agenda Survey Process & Methodology
Job Matching: Mercer Universal Position Code System (MUPCS)
International Position Evaluation™ System (IPE) v3.1
MERCER
1
Survey Process & Methodology
MERCER
Mercer Survey Process Overview - 4 main steps for participants Step 1
Step 2
Step 3
Step 4
Job Matching
Position Evaluation
Data Input & Submission
Data Processing
Job Matching
Position Evaluation
Submit data collection kit
Data checking & processing
Delivery of Survey Result Access the survey result
Mercer WIN
MERCER
3
Mercer Survey Process (Step 1) Job Matching •
Should start matching top down
•
Do not use only job titles to match to Mercer positions but to job content – Titles can have varying meanings – Titles do not accurately describe job content. For example: A Finance Manager covering all finance related functions vs a Finance Manager covering only ing and payroll – Benchmark position descriptions and specifications provided – Identify each position in the organization with benchmark positions available for you to match
MERCER
4
Job Matching: Mercer Universal Position Code System (MUPCS) – An Overview
MERCER
Mercer Universal Position Coding System (MUPCS) Coding Structure Components 1) Job family 2) Sub family 3) Career stream – broad job ranking 4) Career level – possible progression steps within stream 5) Job activity – differentiates specialties or role variations
Example:
Marketing Manager = 410.100.220
MERCER
6
MUPCS Example – Marketing Manager
Career Stream 1 – Executive 2 – Management 3 – Individual Professional 4 - Para-Professional
Career Level (dependent upon career stream) 1 – Senior Manager 2 – Manager 3 – Team Leader (professionals) 4 – Team Leader (para-prof)
410 100 2 2 0 Family 100 - Top Management 110 - Corporate Affairs 120 - HR 130 - Knowledge Management 200 - Finance & . 410 - Marketing etc.
MERCER
Sub-Family 410 - Marketing 100 – General 444 – Advertising & Promotion 460 – Market Research 464 – Marketing Analysis 468 – Marketing Services etc.
Activity (if necessary to differentiate) 0 1 2 3 etc.
7
Job Matching Guide • Read the job descriptions and select the position that best matches the role in your organisation based on the actual job responsibilities.
Extract
MERCER
8
Mercer Universal Position Coding System (MUPCS) MUPCS Career Streams and Levels Career Streams MUPCS Career Streams 1. Executive
2. Management
3. Individual Professional
4. Para-Professional
1. Head of Organization
MUPCS Levels
2. Function Head
3. Sub-Function Head 1. Senior Manager 1. Pre-eminent 2. Expert 2. Manager 3. Specialist 3. Team Leader (Professional)
4. Senior 5. Experienced
0. Specialist
4. Team Leader (Para-Professional) 6. Entry
1. Senior 2. Experienced 3. Entry
MERCER
9
Definition of Tier Levels Only Applicable for Executive Positions Sub Family 000
SubFamily_label
SubFamily_description
Group Management (Tier 0 or Top tier)
A free standing autonomous organization. The parent corporation of business group’s or the headquarters organisation with a controlling stake in a number of companies, which conduct business separately. The head of such organisations reports to the financial board at the ultimate top of the structure.
010
Subsidiary/Division/Global Line of Business (Tier 1)
A division/subsidiary/global line of business running independently of other business divisions. The subsidiary management reports to senior management at the headquarters of the parent corporation. The parent organization has a majority share ownership of the Subsidiary
020
Territory Management - Region/Zone (Tier 2)
The regional business or market zone representing multiple global business divisions. The regional management reports to senior management at the headquarters of the parent corporation. The parent organization has a majority share ownership of the regional company.
030
Country/Local Operational Company (Tier 3)
Subsidiary operations or market activities on behalf of global business divisions or regional headquarters. The senior management reports to senior management in the parent organization at tier 1 or tier 2 level. Some might report to senior management in a parent organization at tier 3 level.
MERCER
10
Illustration Using Typical Actual Titles Encountered
Group Financial Board
Tier 0
Tier 1
Tier 2
Tier 3
MERCER
Group Management Corporation / Holding Corporate Headquarters Stand Alone Organization
Company Management Subsidiary / Division Legally independent. Own board of directors
Chief Executive Officer (CEO) Head of Corporation (Group) CEO (Non Chairman)
Business Area Management Global Line of Business / Division “Group” within the Firm
Chief Executive / President Division Head / LOB Head Chief Operating Officer (COO)
Head of Region Head of Sub-Region Zone Head
Territory Management Region / Zone Sub-Region / Cluster
Local Business Unit / Country
Chairman of the Board Chairman & CEO
Local Subsidiary / Operational Company
Managing Director General Manager Country Manager Business Unit Manager
11
Executive Jobs Tier Levels – More examples World HQ Parent Company
Region
Country
TIER ZERO (0)
/Subsidiary Division
/Subsidiary Division
TIER ONE (1)
Region
Region
TIER TWO (2)
TIER THREE (3)
Country
MERCER
12
Mercer Survey Process (Step 1) Job Matching Outcome of Job Match Process Managing Director
Head of Finance
100.030.110 – General Manager/Country Manager (MD) Tier 3
Head of Sales
210.100.130 – Head of Finance
420.030.120 – Head of Sales (Tier 3)
Sales Rep Finance Manager
MERCER
210.100.220 - Finance Manager
Sales Rep
420.100.350 Sales Representative
13
Mercer Survey Process (Step 2) Job Evaluation •
Position Sizing – IPE system will generate standard evaluation based on point system (Position Class) – Clients to review and fine tune the evaluations if necessary
MERCER
14
Mercer Survey Process (Step 3) Data Collection and Submission •
Collect data for all incumbents of Benchmark positions
•
Compensation Values – Base Salary – Total Guaranteed Cash Compensation – Total Cash Compensation – Total Direct Compensation – Total Remuneration
MERCER
15
International Position Evaluation™ System (IPE) v3.1 Overview
MERCER
What is IPE? • The Mercer IPE™ is a system designed to objectively determine the relative ranking of positions. • By doing so, the result of an evaluation using the IPE System can provide: – – – – – –
MERCER
A reliable basis for Pay for Position A framework for promotion and succession planning An objective reference to solve titling issues A tool to compare the relative efficiency of different units A means for external comparisons An objective reference for the evaluation of a person vs. his/her position
17
Methodology Overview Position Evaluation Overview Position evaluation is:
Position evaluation is not:
A method of establishing the internal relative value of different jobs within an organisation across functions, divisions, and locations
A process that measures the performance of individuals
A consistent and credible framework for determining job hierarchy and grade structure
A scientific process involving no judgment
A prescription for individual salary levels
A system that can be linked to market compensation data and facilitates internally equitable and externally competitive compensation management
MERCER
18
International Position Evaluation System (IPE) - Factors Organization Impact
Impact
Assess impact level a position has on organisation.
Contribution
Assess relative contribution that a position holder makes in the context of Impact.
Communication
Assess the nature of the necessary communication ability required by a position.
Frame
Determine both organisation frame and nature of interests of communication s.
Innovation
Assess the requirements to identify, make improvements to, or develop procedures, services or products
Complexity
Assess level of complexity that a position holder must deal with.
Knowledge
Measure the nature of knowledge required in the job to accomplish objectives and create value.
Communication Position Class
Organisation size is determined by monetary scale such as sales and assets, and number of employees.
Innovation
Knowledge
Team Breadth
MERCER
Team dimension. Assess the breadth (geographic context) in which the knowledge is to be applied.
19
IPE Methodology Overview Factors weighting 705
Factor
Weight
Impact
57%
Communication
9%
Innovation
10%
Knowledge
21%
Risk
3%
260
130
115
35 5
10 Impact
Organisation
10
10
Communication
Innovation
Complexity
Contribution
0 Knowledge
Teams
Breadth
Risk
Environment
Frame
MERCER
21
IPE Methodology Overview Position Class Total Point Range Position Class 26 - 50 40 51 - 75 41 76 - 100 42 101 - 125 43 126 - 150 44 151 - 175 45 176 - 200 46 201 - 225 47 226 - 250 48 251 - 275 49 276 - 300 50 301 - 325 51 326 - 350 52 351 - 375 53 375 - 400 54 401 - 425 55
Total Point Range Position Class 426 - 450 56 451 - 475 57 476 - 500 58 501 - 525 59 526 - 550 60 551 - 575 61 576 - 600 62 601 - 625 63 626 - 650 64 651 - 675 65 676 - 700 66 701 - 725 67 726 - 750 68 751 - 775 69 776 - 800 70 801 - 825 71
Total Point Range Position Class 826 - 850 72 851 - 875 73 876 - 900 74 901 - 925 75 926 - 950 76 951 - 975 77 976 - 1000 78 1001 - 1025 79 1026 - 1050 80 1051 - 1075 81 1076 - 1100 82 1101 - 1125 83 1126 - 1150 84 1151 - 1175 85 1176 - 1200 86 1201 - 1225 87
Genera l Sta ff Profes s iona l Ma na gement Top Ma na gement MERCER
22
Impact Factor
MERCER
Impact Factor Overview To determine the degree for this factor: – Determine the size of the organisation by: - Determining the nature of the organisation and its number of employees - Calculating adjusted revenue – Determine the nature of impact by: - Identifying the area of the organisation impacted by the position holder - Determining the type of impact the position holder has on the organisation – Determine the contribution level by:
Impact
- Considering the level of autonomy of a position holder - Determining a position holder’s relative contribution to business strategy and vision MERCER
Organisation
Contribution 24
Impact Factor Organisation Impact Contribution
MERCER
25
Impact Factor Organisation Dimension Steps to determining an organisation’s size:
Step 1: Identify organisations.
Step 2: Determine the nature of an organisation and calculate the multiplier.
Step 3: Calculate the adjusted revenue.
Step 4: Determine the degree using adjusted revenue and number of employees.
Step 5: Size the organisation. MERCER
26
Sizing an Organisation Step 1: Identify Organisations Subdivide the company into smaller organisations that meet the IPE organisation criteria. An organisation must have: Its own economy (Sales turnover, Costs, Assets) At least one primary function (Production, Marketing & Sales, R&D) At least two ing functions (Economy and Personnel)
MERCER
27
Sizing an Organisation Step 2: Determine Nature of Organisation and Calculate Multiplier in eIPE System From origin
Economic volume (Net Sales Turnover, Assets) Number of employees (Capital or People intensive)
To final consumer
Tangible products - Products organisation
Product Development
MERCER
Production
Sales and Service
Sizing an Organisation Step 2: Determine Nature of Organisation and Calculate Multiplier in eIPE System From origin
Economic volume (Net Sales Turnover, Assets) Number of employees (Capital or People intensive)
To final consumer
Intangible products - Services organisation
Creation
MERCER
Application
Sales and Service
Sizing an Organisation What major steps in the products organization generates added-value Primary research. Typically includes basic research and development activities where the eventual product and/or market potential is unknown. Generally characterized by a relatively modest rate of success (e.g., 20% of research eventually results in new products).
4.0
Applied Research & Development
Product development. Includes targeted R&D activities to develop a specific new product or enhancement of an existing product where the eventual market potential is more defined. Typically includes development of preliminary product specifications and pre-production prototypes. Go-to-market decisions are generally made at this stage of development.
2.0
Engineering
Production design. Final engineering of production-ready specifications and manufacturing processes.
1.5
Procurement / Inbound Logistic
Supply. Specific function responsible for obtaining manufacturing inputs, including raw materials and intermediate manufactured products. Generally responsible for all contract negotiation, vendor management and spot market transactions. Supply management. Management of inbound materials, including delivery scheduling, transportation, warehousing and inventory management.
2.0
Production
Basic manufacturing. Production of intermediate or final goods from raw materials. May include intermediate manufactured products as part of the production process. Characterised by the conversion of materials to a new product with different characteristics (e.g., molding of plastic into auto parts).
2.0
6
Application/Assembly
Assembly of previously manufactured goods for market. Includes final assembly and packaging of two or more manufactured products (e.g., assembly of auto parts into a complete automobile). May include limited intermediate finishing of inputs.
2.5
7
Marketing
Independent of sales. Function responsible for internal market analysis and planning and external communications, such as public relations, advertising and marketing collateral.
1.0
Sales
Excluding marketing. Includes management of direct and indirect sales forces. Does not include oversight of third-party distributors.
1.5
Distribution
Outbound logistics. Includes warehousing and outbound transportation of goods to third-party distributors and/or final customers.
1.5
Service
After-sale service. Includes customer call centres and repair, service and . Service may be offered on warranty, contract or fee-for-service basis.
2.0
2
3
Product Development
Basic Research & Development
1
4
9 10
Sales and Service
8
Production
5
MERCER
30
Sizing an Organisation What major steps in the services organization generates added-value
2
Operations
3
Product Development
1
4
6
Sales and Service
5
7
MERCER
Idea & Concept Origination
Intellectual capital and/or technology development. Typically includes basic research and development activities where the eventual service and/or market potential for that service is unknown.
3.0
Generate Application
Service definition. Includes the development of the service that will be offered and the specifics around that service, such as tools and processes for service delivery. May also include the development of new markets for existing service lines.
2.0
Apply Solutions
Delivery of solutions-based services. Generally includes idea-based services such as consulting and creative development where the customer is paying for ideas.
2.5
Marketing
Independent of sales. Function responsible for internal market analysis and planning and external communications, such as public relations, advertising and marketing collateral.
1.5
Sales
Excluding marketing. Includes management of direct and indirect sales forces.
3.0
Distribution
Physical delivery of service. Distribution of services to customers through personal . Includes remote via telephone, internet, etc. May include physical delivery of idea-based or non-idea based services. "Apply Solutions" and "Distribution" always occur concurrently (but "Distribution" may occur without "Apply Solutions").
1.5
Customer Service
. Includes customer call centers and post-service .
1.5
31
Sizing an Organisation Step 2: Value chain weighting in eIPE System From origin
Economic volume (Net Sales Turnover, Assets) Number of employees (Capital or People intensive)
To final consumer
Tangible products - Products organisation Product Development
4
2
Production
1.5
2
2
Sales and Service
2.5
1
1.5
1.5
2 Sum = 20
MERCER
Sizing an Organisation Step 3: Calculate the adjusted revenue Basic R&D
Applied R&D
4.0
¨
Engineer
2.0
1.5
¨
¨
Procure Logistics
Produce
2.0
2.0
¨
¨
Apply Assemble
2.5
Market
1.0
Sales
Distribution
Service
1.5
2.0
1.5
¨
Example: Sales & Technical Service Organisation with 150 head count Sales Volume: Multiplier: Adjusted Revenue:
US$ 40 million 6 US$ 240 million
Reference to the Economic Size Table, =>
MERCER
Degree level for Size :
Economic Size Table
4
33
Sizing an Organisation Step 4: Determine degrees using adjusted revenue and no. of employees with the organisation size table
Step 4a – Determine degree for economic size
MERCER
Step 4b – Determine degree for # of employees
34
Sizing an Organisation Calculated Degree Level
Example: Sales & Technical Service Organisation (150 employees)
Economic Size Degree Level:
4
No. of Employees Degree Level:
5
Calculated Average:
Degree Level for Size of Organization:
MERCER
4.5
4
35
Impact Factor Organisation Impact Contribution
MERCER
Impact factor Nature of Impact and Contribution Matrix in eIPE system - Example Level of Contribution NATURE OF IMPACT 1
Delivery
2
Operational
3
Tactical
4
Strategic
5
Visionary
MERCER
1
2
3
4
5
Limited
Some
Direct
Significant
Major
Marked contribution to defining the direction for new products, processes, standards or operational plans based upon business strategy, with a significant midterm impact on business unit overall results.
37
Impact factor: Impact dimension Impact levels Type of Impact
Nature of Impact
Job area
Within specific standards and guidelines
1. Delivery
Job Area(s)
Within operational targets or service standard
2. Operational
Business Unit/Function
New products/ processes based on organisation strategy
3. Tactical
Area of Impact
Organisation level
Corporate level
MERCER
Longer-term plans based on organisation vision
4. Strategic
Vision, mission & values
5. Visionary
38
Impact dimension Cascade from Group to Division and down to Business Unit level
Group Level
Visionary Division Level
Strategic Business Unit
MERCER
Tactical 39
Impact Factor Organisation Impact Contribution
MERCER
Impact factor: Contribution dimension The spectrum of contribution levels
Limited Hard to identify/discern contribution to achievement of results
Some
Level of Contribution Direct Significant
Easily discernible or measurable contribution that usually leads indirectly to achievement of results
Directly and clearly influences the course of action that determines the achievement of results
Major
Quite marked contribution with authority of a frontline or primary nature
Propose
Predominant authority in determining the achievement of key results
Decide
Contribution must be assessed in the context of the impact level determined Delivery
Consider the level of autonomy within job area (e.g., s Payable)
Operational
Consider the level of autonomy within job or operational area (e.g., ing)
Tactical
Consider the relative contribution to short- and mid-term functional or operational plans (e.g., Finance)
Strategic
Consider the relative contribution to long-term business strategy
Visionary
Consider the relative contribution to establishing an organisation’s vision
MERCER
41
Impact degree 5: Visionary Contribution to organisation's vision
Impact degree 5 - Visionary Contribution Limited
Some
Direct
Significant
Major
Head of Dependent Subsidiary
Head of Subsidiary
Head of Dependent Business Unit
Head of Major Global Business
Chairman & CEO
CEO
Subsidiaries / Operational Companies
MERCER
Global Line of Business
Free Standing Organisations
42
Impact degree 4: Strategic Contribution to organisation’s business strategy Level of Contribution Limited Hard to identify/discern contribution to achievement of results
Some
Direct
Easily discernible or measurable contribution that usually leads indirectly to achievement of results
Directly and clearly influences the course of action that determines the achievement of results
Significant Quite marked contribution with authority of a frontline or primary nature
Major Predominant authority in determining the achievement of key results
Overall Business Results
< 10% 10 - 15%
15 - 20%
20 - 30%
> 30%
When evaluating Impact degree 3, “Tactical”, and 4, “Strategic”, establish the direct ability for qualitative and quantitative contribution to the organization’s overall result (100%). MERCER
43
Communication Factor
MERCER
Communication factor Overview To determine the degree for this factor: – Determine the nature of communication by: - Defining the most difficult and challenging communication that the job holder encounters - Determining how frequently the most difficult and challenging communication occurs – Determine the frame of the communication by: - Determining the communication audience - Determining the audience context
Communication
Frame
MERCER
46
Communication Factor Communication Frame
MERCER
Communication factor: Communication dimension Communication levels Nature of Communication
MERCER
Desired Outcome
Level of Communication
Statements, suggestions
Understanding of information
1. Convey
Reach agreement through flexibility
Comprehension of facts/policies
2. Adapt and Exchange
Affect change without commands
Acceptance of a concept, practice or approach
3. Influence
Strategic shorterterm communication
Acceptance through discussion and compromise
4. Negotiate
Important long-term communication
Acceptance of strategic agreement
5. Negotiate Long Term 48
Communication factor: Communication dimension Frequency of communication Level of Communication
Frequency
1. Convey
1. Frequent 1.5 Continuous
MERCER
2. Adapt and Exchange
1.5 Occasional 2. Frequent 2.5 Continuous
3. Influence
2.5 Occasional 3. Frequent 3.5 Continuous
4. Negotiate
3.5 Occasional 4. Frequent 4.5 Continuous
5. Negotiate Long Term
4.5 Occasional 5. Frequent
Occasional Few times a month
Frequent Regular but not daily
Continuous Daily
49
Communication Factor Communication Frame
MERCER
Communication factor: Frame dimension Internal vs. external audience President and Chief Executive Officer Chief Human Resources Officer
Chief Financial Officer
Corporate Secretary
Chief Information Officer
Regional Director Asia / Pacific
Regional Director Europe
Regional Director Latin America
Regional Director North America
Managing Director
Managing Director
Managing Director Italy
Managing Director Great Britain
Managing Director Scandinavia
Director Manufacturing
Director Finance
Director Sales & Marketing
Director Human Resources
Director Logistics
Internal
External MERCER
51
Communication factor: Frame dimension Nature of interests Shared
Divergent
Common goals
Conflicting objectives
Aligned interests
Contradicting interests
Mutual desire
Differing points of view
Willingly compromise
Reluctantly compromise
Discuss
Debate
Win-Win
Risk of Win-Lose
MERCER
52
Communication factor: Frame dimension Organisational frame
Frame 1 Internal Shared
Interests
2 External Shared
Interests
Interests
Interests
4 External Divergent
Interests
Interests Interests
MERCER
3 Internal Divergent
Interests
53
Innovation Factor
MERCER
Innovation factor Overview Innovation relates to the requirements of the position to identify and make improvements to procedures, services, or products. Innovation also relates to the requirements to develop new ideas, methods, techniques, services and products. To determine the appropriate degree for this factor: – Identify the level of innovation required of the position. – Identify the level of complexity of the innovation. Innovation
Complexity
MERCER
56
Innovation Factor Innovation Complexity
MERCER
Innovation factor: Innovation dimension Overview Innovation falls into one of three broad categories:
MERCER
Constrained by existing policies
• Follow • Check
Focused on improvements
• Modify • Improve
Create new processes and products
• Create • Breakthrough
58
Which Degree of Innovation?
INNOVATION - Limited changes expected from the position holder Follow
s Clerk from the position holder, eg. s Clerk. Limitedeg. changes expected
Check
- Make minor changes of existing procedures, processes Make minor changes withwith helphelp of existing procedures, processes, eg. HR Officer, eg. HR Officer, ant responsible for reconciliation, Quality responsible ant responsible for reconciliation, Quality control responsible for control checking products for checking products for defects on assembly line. for defects on assembly line.
Modify
- Resolve issues / problems by modifying / enhancing existing working method Resolve issues / problems by modifying / enhancing existing working method, eg. eg. ing Mgr responsible for changing ing procedures in order to reduce errors. ing Manager responsible for changing ing procedures in order to reduce errors.
Improve Create / Conceptualize Scientific/Technical Breakthrough
MERCER
Change/prevent issues/ problems by significantly improve entire process systems or or products - Change/prevent issues/ problems by significantly improve entire process systems products General Manager responsible changing organization reflect new eg.eg. General Manager responsible forfor changing thethe organization to to reflect new environment environment conditions and corporate conditions and corporate goals.goals. - Create new methods, techniques or products Create new methods, techniques or products, eg. Position devising new financial strategies Position devisingsources new financial strategies to gain access to uptapped sources of fund to gain eg. access to untapped of fund. - Develop unprecedented scientific or technical ideas Develop newnew andand unprecedented scientific or technical ideas, eg. High level research in eg. High level research in R&D R&D.
59
Innovation Factor Innovation Complexity
MERCER
Innovation factor: Complexity dimension Levels of complexity Complexity Defined
Difficult
In either In either Operational, Operational, Financial or Human Financial or Human area - Not easily area - Easily understood understood
Complex
Multi-dimensional
In any two of three dimensions i.e., Operational, Financial and Human area
In all three dimensions Operational, Financial and Human Involved directly in all three dimensions
MERCER
62
Knowledge Factor
MERCER
Knowledge factor Overview The degree for this factor depends upon: – Depth of knowledge required to accomplish objectives – The way knowledge is applied individually and within teams – The breadth in which the knowledge is to be applied.
Knowledge
Teams
MERCER
Breadth
65
Knowledge Factor Knowledge Teams Breadth
MERCER
Knowledge factor: Knowledge dimension Levels of knowledge In-depth management knowledge in most functions across several businesses of the corporation
8
In-depth management knowledge across several line and functions or businesses
7
Industry expert in the profession
6
organisation expert in the profession
5
Mastery of specific professional discipline at expert level
Broad management knowledge across several functional areas or businesses Broad knowledge of several, different areas across functions
4
Advanced knowledge of specific discipline within one’s own job area
3
Broader theoretical or advanced technical/operational know-how
2
Specialised commercial, technical or operational know-how
1
Fundamental know-how within narrow boundaries
Specialist MERCER
Generalist 67
Which degree of Knowledge ? KNOWLEDGE
Education
Limited Job Knowledge
Mandatory schooling
Basic Job Knowledge
Higher Secondary or Vocational education
Broad Job Knowledge
Specialized School
+
Learning Experience No previous experience (e.g. Data Entry Operator) Up to 6 months experience (e.g. s Clerk, Technician) 6 months up to 2 years experience (e.g. Project Coordinator, Process Engineer )
Expertise
University Degree
2 years up to 5 years experience (e.g. Senior ant )
MERCER
Professional Standard
University Degree
Organizational Generalist / Functional Specialist
University Degree
Broad Practical Experience / Functional Pre-eminence
University Degree
Broad and Deep Practical Experience
University Degree
5 years up to 8 years experience (e.g. Finance Head, Head of Sales) 8 years up to 12 years experience (e.g. Corporate Finance Head, Corporate HR Head) 12 years up to 16 years experience (e.g. Appointed Actuary, Head of Business Unit, Head of large-size organization within a corporation) More than 16 years experience (e.g. Head of a large complex corporation or unit with complex functions )
68
Knowledge Factor Knowledge Teams Breadth
MERCER
Knowledge factor: Teams dimension Team positions Team positions Team member
Team leader
and
MERCER
Teams manager
and
70
Team (Degree) Typical Examples • Team 1: Team Member The position holder is an individual contributor and is directly responsible for performing activities or discharging responsibilities • Team 1.5: Use team 1.5, if the position holder coordinates project activities or had functional management (dotted line management) • Team 2: Team Leader The position holder leads a team that is responsible for delivering outputs & results. For a group to be designated as a team, it should include at least 3 (excluding assistant or secretary) To be considered managing the team , the team leader should lead, schedule, allocate & monitor work (including performance appraisal) • Team 2.5: The position holder is responsible for a team with its own leader and has another team reporting directly • Team 3: Team Manager A Team Manager direct multiple teams, each of which has a team leader A Team Manager determines team structure and roles of
MERCER
71
Knowledge Factor Knowledge Teams Breadth
MERCER
Knowledge factor: Breadth dimension Breadth degrees Domestic
Regional
Regional
Global
Africa
MERCER
74
Knowledge factor: Breadth dimension Location examples Global All major time zones
Breadth
Domestic
Sub-Region
Regional
Multiple Regions
Degree
1
1.5
2
2.5
3
Continental region
Minimum two Continental regions
All regions of the world
Europe, Asia, Oceania, Africa, Latin America
EMEA
Americas and EMEA and Asia/Pacific
Application of knowledge Manage and/or apply results locally
Territory
MERCER
Locations within a country or Multiple countries neighbouring with diverse cultures countries with similar culture
USA, China
ASEAN, BENELUX, Nordics, Central America
75
Position Class
MERCER
Position class Sample role: Regional sales manager
Contribution
Degree 12 3 2
Communication
3.5
Size
Impact
Impact
Frame
4
Innovation
3 45
Innovation Complexity
2
Knowledge
4 2 1.5
Teams Breadth
MERCER
179
88
Communication
Knowledge
Points
130
Total Points
442
Position Class
?
77
Position class Sample role: Regional sales manager (continued)
MERCER
78
Position class Sample role: Regional sales manager
Contribution
Degree 12 3 2
Communication
3.5
Size
Impact
Impact
Frame
4
Innovation
3 45
Innovation Complexity
2
Knowledge
4 2 1.5
Teams Breadth
MERCER
179
88
Communication
Knowledge
Points
130
Total Points
442
Position Class
56
79
Appendix
MERCER
Career Stream Description - Management Management Career Stream Management Stream is the role focused on managing people and implementing policies and strategies to meet the organization’s objectives. 1. Senior Manager Manages within a nominated sub-function or related sub-functions; typically a highly experienced manager. Decisions tend to be more tactical and operational; geographic scope of operation tends to be at the country level. Typically able for budget and policy recommendations and medium term planning. 2. Manager Managing teams with focus on policy and strategy implementation and control rather than development; short-term operational/tactical responsibilities. * Note that not all Career Levels are available in the MUPCS framework.
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Career Stream Description - Management Management Career Stream 3. Team Leader (supervise Professionals) Leads/supervises a team of 2 or more professionals; first level manager of a work team that could comprise professionals, technical and/or istrative staff. Typically without budget or hire/fire authority. Focuses on mentoring, coaching, and coordination. 4. Team Leader (supervise Para-Professionals) Leads/supervises a team of 2 or more Para-professionals; first level manager of a work team that comprises Para- professionals. Typically without budget or hire/fire authority. Focuses on mentoring, coaching, and coordination. * Note that not all Career Levels are available in the MUPCS framework.
.
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Career Stream Description - Professional Professional Career Stream Professional Stream is the role intended for individual contributors without a specific supervisory responsibility, although it may allow for coaching / mentoring less experienced staff. These roles require a degree or equivalent. 1. Pre-Eminent Individual contributor; superior in excellence; internationally recognized leader and contributor in field of expertise, speaks at national and international forums, contributes to the body of knowledge within area of expertise. 2. Expert Individual contributor and acknowledged expert both within the organization as well as within other organizations. Typically participates in industry/knowledge reference groups. Involves mastery of a specialized discipline and thorough understanding of a number of disciplines. May also require development of new solutions for complex projects. * Note that not all Career Levels are available in the MUPCS framework.
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Career Stream Description - Professional Professional Career Stream 3. Specialist Individual contributor with comprehensive knowledge in specific area. Ability to execute highly complex or specialized projects; adapts precedent and may make significant departures from traditional approaches to develop solutions. 4. Senior Individual contributor that is fully proficient in applying established standards; knowledge based acquired from several years of experience in particular area. Works independently; may instruct or coach other professionals. 5. Experienced Individual contributor that works under limited supervision. Applies subject matter knowledge; requires capacity to understand specific needs or requirements to apply skills/knowledge. 6. Entry Individual contributor representing the most common entry point for this career stream; works under direct supervision. * Note that not all Career Levels are available in the MUPCS framework. MERCER
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Career Stream Description – Para-Professional Para-Professional Career Stream Para-Professional Stream is a skilled, semi-skilled or unskilled role without supervisory responsibility. Roles in this stream do not require a university degree. They may require some formal professional training and/or certification. 1. Senior Individual contributor that is fully proficient in applying established standards; knowledge based acquired from several years of experience in particular area. Works independently; may instruct or coach other professionals. 2. Experienced Individual contributor that works under limited supervision. Applies subject matter knowledge; requires capacity to understand specific needs or requirements to apply skills/knowledge. 3. Entry Individual contributor representing the most common entry point for this career stream; works under direct supervision. * Note that not all Career Levels are available in the MUPCS framework.
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Questions?
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e-IPE Online Position Evaluation System Demo
What is e-IPE? • e-IPE is a web application that puts the power of the Mercer International Position Evaluation System in your hands • It allows you to choose benchmark positions for survey participation, and modify the position evaluations to reflect the position in your organization • Review and update your company details online • No third-party software to load onto your corporate computer • Enhancements are immediately available to you • protected to ensure confidentiality
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How do I use e-IPE? • to the internet: http://eipe.imercer.com • to the site using your name and (supplied to you by your Mercer representative) • the guide, list of benchmark positions, and IPE manual, and familiarize yourself with them • Review and update your company details • Add and evaluate benchmark positions • Link benchmark positions to your company’s Actual Title for the position • Review using the Reporting functions • You are ready to submit your data for the survey!
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How To Use e-IPE ? to the site & Change • to the internet: http://eipe.imercer.com/ • to the site using your name and (supplied to you by your Mercer representative) • the guide and IPE manual, and familiarize yourself with them • From the Main Menu, Survey s navigate to the Home Module and change your
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How To Use e-IPE ? Organization Module - Update Company Size From the Main Menu, Survey s navigate to the Organization Module to • Review and update your company details • Review and update size of your company • Review and update information
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How To Use e-IPE ? Organization Module - Update Company Size From the Main Menu, Survey s navigate to the Organization Module to • Review and update your company details • Review and update size of your company • Review and update information
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How To Use e-IPE ? Position Module - Match to Survey Benchmarks From the Main Menu, Survey s navigate to the Position Module to • Click on the “Job Match” button to add Survey Mercer Benchmarks for the Job Matching • In the “Position Match” screen, select Organization and search Benchmark Position that you want to add and click the “Go” button • Tick your Benchmarks by using checkboxes and click the “Create” button. After that “Position Evaluation List” screen will go back. MERCER
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How To Use e-IPE ? Position Module – Modify the Standard Position Evaluations To review and modify Position Evaluation to better reflect the role: • Select Positions and press “Grid Edit” button. • Add “Actual title” • Modify the standard position evaluations to reflect the actual evaluations of the position in your organization through IPE factors
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How To Use e-IPE ? Incumbent Module - Assign Incumbents to Positions (optional) From the Main Menu, navigates to the Incumbent Module Survey s can : • Manage Company Incumbent List • Assign one or multiple Incumbents to a Position • Export a list of Incumbents with your Mercer Benchmark Titles and Position Class
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How To Use e-IPE ? Incumbent Module – How to Assign Incumbents to Positions Survey can add new Incumbents using two methods: Manually, by adding individual Incumbents using the “Add” button Bulk Import using a wizard (“Import” button)
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How To Use e-IPE ? Incumbent Module – Manually Assign Incumbents to Positions Manual method of adding Incumbents: After pressing the “Add” button on the Incumbent List page, the following screen appears Survey must provide all required fields, marked with asterisk (*) From this screen Survey can also directly match Incumbent to Company Position
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How To Use e-IPE ? Incumbent Module – Bulk Import Incumbents Bulk Import method for adding Incumbents: After pressing the “Import” button on the Incumbent List page, Survey enters the import wizzard Survey can generate a blank template by providing a file name and clicking on the “Export” button Once all required fields are completed and the import file has been saved, clicks on the “Next” button to enter the Import screen MERCER
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How To Use e-IPE ? Incumbent Module – Bulk Import Incumbents To import Incumbents in bulk from an import file: Survey specifies the location of the import file Presses the “Import” button to load the file System begins processing the import file & when finished displays import status: If errors occur, can enter Import Summary page to find out about the details and correct them in the import file. MERCER
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How To Use e-IPE ? Incumbent Module – Asg Incumbents to Positions In the Incumbent List select one or more Incumbents and click the “Assign” button to match to Comapny Position
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How To Use e-IPE ? Incumbent Module – Asg Incumbents to Positions In the Position Evaluation List select a Position and click the “Assign Incumbent” button to match to an Incumbent
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How To Use e-IPE ? Reports Module
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How To Use e-IPE ? Reports Module – Report list
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How To Use e-IPE ? Reports Module – ing a Report
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How is this used in survey data submission? • The position evaluations are stored in our online database only. • The Actual Title you entered into eIPE system should corresponds to your data collection kits. • Add the finalised MUPC and PC from eIPE system to the submitted incumbent in data collection kit.
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Agenda Survey Process & Methodology
Job Matching: Mercer Universal Position Code System (MUPCS)
International Position Evaluation™ System (IPE) v3.1
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Survey Process & Methodology
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Mercer Survey Process Overview - 4 main steps for participants Step 1
Step 2
Step 3
Step 4
Job Matching
Position Evaluation
Data Input & Submission
Data Processing
Job Matching
Position Evaluation
Submit data collection kit
Data checking & processing
Delivery of Survey Result Access the survey result
Mercer WIN
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Mercer Survey Process (Step 1) Job Matching •
Should start matching top down
•
Do not use only job titles to match to Mercer positions but to job content – Titles can have varying meanings – Titles do not accurately describe job content. For example: A Finance Manager covering all finance related functions vs a Finance Manager covering only ing and payroll – Benchmark position descriptions and specifications provided – Identify each position in the organization with benchmark positions available for you to match
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Job Matching: Mercer Universal Position Code System (MUPCS) – An Overview
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Mercer Universal Position Coding System (MUPCS) Coding Structure Components 1) Job family 2) Sub family 3) Career stream – broad job ranking 4) Career level – possible progression steps within stream 5) Job activity – differentiates specialties or role variations
Example:
Marketing Manager = 410.100.220
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MUPCS Example – Marketing Manager
Career Stream 1 – Executive 2 – Management 3 – Individual Professional 4 - Para-Professional
Career Level (dependent upon career stream) 1 – Senior Manager 2 – Manager 3 – Team Leader (professionals) 4 – Team Leader (para-prof)
410 100 2 2 0 Family 100 - Top Management 110 - Corporate Affairs 120 - HR 130 - Knowledge Management 200 - Finance & . 410 - Marketing etc.
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Sub-Family 410 - Marketing 100 – General 444 – Advertising & Promotion 460 – Market Research 464 – Marketing Analysis 468 – Marketing Services etc.
Activity (if necessary to differentiate) 0 1 2 3 etc.
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Job Matching Guide • Read the job descriptions and select the position that best matches the role in your organisation based on the actual job responsibilities.
Extract
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Mercer Universal Position Coding System (MUPCS) MUPCS Career Streams and Levels Career Streams MUPCS Career Streams 1. Executive
2. Management
3. Individual Professional
4. Para-Professional
1. Head of Organization
MUPCS Levels
2. Function Head
3. Sub-Function Head 1. Senior Manager 1. Pre-eminent 2. Expert 2. Manager 3. Specialist 3. Team Leader (Professional)
4. Senior 5. Experienced
0. Specialist
4. Team Leader (Para-Professional) 6. Entry
1. Senior 2. Experienced 3. Entry
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Definition of Tier Levels Only Applicable for Executive Positions Sub Family 000
SubFamily_label
SubFamily_description
Group Management (Tier 0 or Top tier)
A free standing autonomous organization. The parent corporation of business group’s or the headquarters organisation with a controlling stake in a number of companies, which conduct business separately. The head of such organisations reports to the financial board at the ultimate top of the structure.
010
Subsidiary/Division/Global Line of Business (Tier 1)
A division/subsidiary/global line of business running independently of other business divisions. The subsidiary management reports to senior management at the headquarters of the parent corporation. The parent organization has a majority share ownership of the Subsidiary
020
Territory Management - Region/Zone (Tier 2)
The regional business or market zone representing multiple global business divisions. The regional management reports to senior management at the headquarters of the parent corporation. The parent organization has a majority share ownership of the regional company.
030
Country/Local Operational Company (Tier 3)
Subsidiary operations or market activities on behalf of global business divisions or regional headquarters. The senior management reports to senior management in the parent organization at tier 1 or tier 2 level. Some might report to senior management in a parent organization at tier 3 level.
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Illustration Using Typical Actual Titles Encountered
Group Financial Board
Tier 0
Tier 1
Tier 2
Tier 3
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Group Management Corporation / Holding Corporate Headquarters Stand Alone Organization
Company Management Subsidiary / Division Legally independent. Own board of directors
Chief Executive Officer (CEO) Head of Corporation (Group) CEO (Non Chairman)
Business Area Management Global Line of Business / Division “Group” within the Firm
Chief Executive / President Division Head / LOB Head Chief Operating Officer (COO)
Head of Region Head of Sub-Region Zone Head
Territory Management Region / Zone Sub-Region / Cluster
Local Business Unit / Country
Chairman of the Board Chairman & CEO
Local Subsidiary / Operational Company
Managing Director General Manager Country Manager Business Unit Manager
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Executive Jobs Tier Levels – More examples World HQ Parent Company
Region
Country
TIER ZERO (0)
/Subsidiary Division
/Subsidiary Division
TIER ONE (1)
Region
Region
TIER TWO (2)
TIER THREE (3)
Country
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Mercer Survey Process (Step 1) Job Matching Outcome of Job Match Process Managing Director
Head of Finance
100.030.110 – General Manager/Country Manager (MD) Tier 3
Head of Sales
210.100.130 – Head of Finance
420.030.120 – Head of Sales (Tier 3)
Sales Rep Finance Manager
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210.100.220 - Finance Manager
Sales Rep
420.100.350 Sales Representative
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Mercer Survey Process (Step 2) Job Evaluation •
Position Sizing – IPE system will generate standard evaluation based on point system (Position Class) – Clients to review and fine tune the evaluations if necessary
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Mercer Survey Process (Step 3) Data Collection and Submission •
Collect data for all incumbents of Benchmark positions
•
Compensation Values – Base Salary – Total Guaranteed Cash Compensation – Total Cash Compensation – Total Direct Compensation – Total Remuneration
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International Position Evaluation™ System (IPE) v3.1 Overview
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What is IPE? • The Mercer IPE™ is a system designed to objectively determine the relative ranking of positions. • By doing so, the result of an evaluation using the IPE System can provide: – – – – – –
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A reliable basis for Pay for Position A framework for promotion and succession planning An objective reference to solve titling issues A tool to compare the relative efficiency of different units A means for external comparisons An objective reference for the evaluation of a person vs. his/her position
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Methodology Overview Position Evaluation Overview Position evaluation is:
Position evaluation is not:
A method of establishing the internal relative value of different jobs within an organisation across functions, divisions, and locations
A process that measures the performance of individuals
A consistent and credible framework for determining job hierarchy and grade structure
A scientific process involving no judgment
A prescription for individual salary levels
A system that can be linked to market compensation data and facilitates internally equitable and externally competitive compensation management
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International Position Evaluation System (IPE) - Factors Organization Impact
Impact
Assess impact level a position has on organisation.
Contribution
Assess relative contribution that a position holder makes in the context of Impact.
Communication
Assess the nature of the necessary communication ability required by a position.
Frame
Determine both organisation frame and nature of interests of communication s.
Innovation
Assess the requirements to identify, make improvements to, or develop procedures, services or products
Complexity
Assess level of complexity that a position holder must deal with.
Knowledge
Measure the nature of knowledge required in the job to accomplish objectives and create value.
Communication Position Class
Organisation size is determined by monetary scale such as sales and assets, and number of employees.
Innovation
Knowledge
Team Breadth
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Team dimension. Assess the breadth (geographic context) in which the knowledge is to be applied.
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IPE Methodology Overview Factors weighting 705
Factor
Weight
Impact
57%
Communication
9%
Innovation
10%
Knowledge
21%
Risk
3%
260
130
115
35 5
10 Impact
Organisation
10
10
Communication
Innovation
Complexity
Contribution
0 Knowledge
Teams
Breadth
Risk
Environment
Frame
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IPE Methodology Overview Position Class Total Point Range Position Class 26 - 50 40 51 - 75 41 76 - 100 42 101 - 125 43 126 - 150 44 151 - 175 45 176 - 200 46 201 - 225 47 226 - 250 48 251 - 275 49 276 - 300 50 301 - 325 51 326 - 350 52 351 - 375 53 375 - 400 54 401 - 425 55
Total Point Range Position Class 426 - 450 56 451 - 475 57 476 - 500 58 501 - 525 59 526 - 550 60 551 - 575 61 576 - 600 62 601 - 625 63 626 - 650 64 651 - 675 65 676 - 700 66 701 - 725 67 726 - 750 68 751 - 775 69 776 - 800 70 801 - 825 71
Total Point Range Position Class 826 - 850 72 851 - 875 73 876 - 900 74 901 - 925 75 926 - 950 76 951 - 975 77 976 - 1000 78 1001 - 1025 79 1026 - 1050 80 1051 - 1075 81 1076 - 1100 82 1101 - 1125 83 1126 - 1150 84 1151 - 1175 85 1176 - 1200 86 1201 - 1225 87
Genera l Sta ff Profes s iona l Ma na gement Top Ma na gement MERCER
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Impact Factor
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Impact Factor Overview To determine the degree for this factor: – Determine the size of the organisation by: - Determining the nature of the organisation and its number of employees - Calculating adjusted revenue – Determine the nature of impact by: - Identifying the area of the organisation impacted by the position holder - Determining the type of impact the position holder has on the organisation – Determine the contribution level by:
Impact
- Considering the level of autonomy of a position holder - Determining a position holder’s relative contribution to business strategy and vision MERCER
Organisation
Contribution 24
Impact Factor Organisation Impact Contribution
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Impact Factor Organisation Dimension Steps to determining an organisation’s size:
Step 1: Identify organisations.
Step 2: Determine the nature of an organisation and calculate the multiplier.
Step 3: Calculate the adjusted revenue.
Step 4: Determine the degree using adjusted revenue and number of employees.
Step 5: Size the organisation. MERCER
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Sizing an Organisation Step 1: Identify Organisations Subdivide the company into smaller organisations that meet the IPE organisation criteria. An organisation must have: Its own economy (Sales turnover, Costs, Assets) At least one primary function (Production, Marketing & Sales, R&D) At least two ing functions (Economy and Personnel)
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Sizing an Organisation Step 2: Determine Nature of Organisation and Calculate Multiplier in eIPE System From origin
Economic volume (Net Sales Turnover, Assets) Number of employees (Capital or People intensive)
To final consumer
Tangible products - Products organisation
Product Development
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Production
Sales and Service
Sizing an Organisation Step 2: Determine Nature of Organisation and Calculate Multiplier in eIPE System From origin
Economic volume (Net Sales Turnover, Assets) Number of employees (Capital or People intensive)
To final consumer
Intangible products - Services organisation
Creation
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Application
Sales and Service
Sizing an Organisation What major steps in the products organization generates added-value Primary research. Typically includes basic research and development activities where the eventual product and/or market potential is unknown. Generally characterized by a relatively modest rate of success (e.g., 20% of research eventually results in new products).
4.0
Applied Research & Development
Product development. Includes targeted R&D activities to develop a specific new product or enhancement of an existing product where the eventual market potential is more defined. Typically includes development of preliminary product specifications and pre-production prototypes. Go-to-market decisions are generally made at this stage of development.
2.0
Engineering
Production design. Final engineering of production-ready specifications and manufacturing processes.
1.5
Procurement / Inbound Logistic
Supply. Specific function responsible for obtaining manufacturing inputs, including raw materials and intermediate manufactured products. Generally responsible for all contract negotiation, vendor management and spot market transactions. Supply management. Management of inbound materials, including delivery scheduling, transportation, warehousing and inventory management.
2.0
Production
Basic manufacturing. Production of intermediate or final goods from raw materials. May include intermediate manufactured products as part of the production process. Characterised by the conversion of materials to a new product with different characteristics (e.g., molding of plastic into auto parts).
2.0
6
Application/Assembly
Assembly of previously manufactured goods for market. Includes final assembly and packaging of two or more manufactured products (e.g., assembly of auto parts into a complete automobile). May include limited intermediate finishing of inputs.
2.5
7
Marketing
Independent of sales. Function responsible for internal market analysis and planning and external communications, such as public relations, advertising and marketing collateral.
1.0
Sales
Excluding marketing. Includes management of direct and indirect sales forces. Does not include oversight of third-party distributors.
1.5
Distribution
Outbound logistics. Includes warehousing and outbound transportation of goods to third-party distributors and/or final customers.
1.5
Service
After-sale service. Includes customer call centres and repair, service and . Service may be offered on warranty, contract or fee-for-service basis.
2.0
2
3
Product Development
Basic Research & Development
1
4
9 10
Sales and Service
8
Production
5
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Sizing an Organisation What major steps in the services organization generates added-value
2
Operations
3
Product Development
1
4
6
Sales and Service
5
7
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Idea & Concept Origination
Intellectual capital and/or technology development. Typically includes basic research and development activities where the eventual service and/or market potential for that service is unknown.
3.0
Generate Application
Service definition. Includes the development of the service that will be offered and the specifics around that service, such as tools and processes for service delivery. May also include the development of new markets for existing service lines.
2.0
Apply Solutions
Delivery of solutions-based services. Generally includes idea-based services such as consulting and creative development where the customer is paying for ideas.
2.5
Marketing
Independent of sales. Function responsible for internal market analysis and planning and external communications, such as public relations, advertising and marketing collateral.
1.5
Sales
Excluding marketing. Includes management of direct and indirect sales forces.
3.0
Distribution
Physical delivery of service. Distribution of services to customers through personal . Includes remote via telephone, internet, etc. May include physical delivery of idea-based or non-idea based services. "Apply Solutions" and "Distribution" always occur concurrently (but "Distribution" may occur without "Apply Solutions").
1.5
Customer Service
. Includes customer call centers and post-service .
1.5
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Sizing an Organisation Step 2: Value chain weighting in eIPE System From origin
Economic volume (Net Sales Turnover, Assets) Number of employees (Capital or People intensive)
To final consumer
Tangible products - Products organisation Product Development
4
2
Production
1.5
2
2
Sales and Service
2.5
1
1.5
1.5
2 Sum = 20
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Sizing an Organisation Step 3: Calculate the adjusted revenue Basic R&D
Applied R&D
4.0
¨
Engineer
2.0
1.5
¨
¨
Procure Logistics
Produce
2.0
2.0
¨
¨
Apply Assemble
2.5
Market
1.0
Sales
Distribution
Service
1.5
2.0
1.5
¨
Example: Sales & Technical Service Organisation with 150 head count Sales Volume: Multiplier: Adjusted Revenue:
US$ 40 million 6 US$ 240 million
Reference to the Economic Size Table, =>
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Degree level for Size :
Economic Size Table
4
33
Sizing an Organisation Step 4: Determine degrees using adjusted revenue and no. of employees with the organisation size table
Step 4a – Determine degree for economic size
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Step 4b – Determine degree for # of employees
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Sizing an Organisation Calculated Degree Level
Example: Sales & Technical Service Organisation (150 employees)
Economic Size Degree Level:
4
No. of Employees Degree Level:
5
Calculated Average:
Degree Level for Size of Organization:
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4.5
4
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Impact Factor Organisation Impact Contribution
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Impact factor Nature of Impact and Contribution Matrix in eIPE system - Example Level of Contribution NATURE OF IMPACT 1
Delivery
2
Operational
3
Tactical
4
Strategic
5
Visionary
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1
2
3
4
5
Limited
Some
Direct
Significant
Major
Marked contribution to defining the direction for new products, processes, standards or operational plans based upon business strategy, with a significant midterm impact on business unit overall results.
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Impact factor: Impact dimension Impact levels Type of Impact
Nature of Impact
Job area
Within specific standards and guidelines
1. Delivery
Job Area(s)
Within operational targets or service standard
2. Operational
Business Unit/Function
New products/ processes based on organisation strategy
3. Tactical
Area of Impact
Organisation level
Corporate level
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Longer-term plans based on organisation vision
4. Strategic
Vision, mission & values
5. Visionary
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Impact dimension Cascade from Group to Division and down to Business Unit level
Group Level
Visionary Division Level
Strategic Business Unit
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Tactical 39
Impact Factor Organisation Impact Contribution
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Impact factor: Contribution dimension The spectrum of contribution levels
Limited Hard to identify/discern contribution to achievement of results
Some
Level of Contribution Direct Significant
Easily discernible or measurable contribution that usually leads indirectly to achievement of results
Directly and clearly influences the course of action that determines the achievement of results
Major
Quite marked contribution with authority of a frontline or primary nature
Propose
Predominant authority in determining the achievement of key results
Decide
Contribution must be assessed in the context of the impact level determined Delivery
Consider the level of autonomy within job area (e.g., s Payable)
Operational
Consider the level of autonomy within job or operational area (e.g., ing)
Tactical
Consider the relative contribution to short- and mid-term functional or operational plans (e.g., Finance)
Strategic
Consider the relative contribution to long-term business strategy
Visionary
Consider the relative contribution to establishing an organisation’s vision
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Impact degree 5: Visionary Contribution to organisation's vision
Impact degree 5 - Visionary Contribution Limited
Some
Direct
Significant
Major
Head of Dependent Subsidiary
Head of Subsidiary
Head of Dependent Business Unit
Head of Major Global Business
Chairman & CEO
CEO
Subsidiaries / Operational Companies
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Global Line of Business
Free Standing Organisations
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Impact degree 4: Strategic Contribution to organisation’s business strategy Level of Contribution Limited Hard to identify/discern contribution to achievement of results
Some
Direct
Easily discernible or measurable contribution that usually leads indirectly to achievement of results
Directly and clearly influences the course of action that determines the achievement of results
Significant Quite marked contribution with authority of a frontline or primary nature
Major Predominant authority in determining the achievement of key results
Overall Business Results
< 10% 10 - 15%
15 - 20%
20 - 30%
> 30%
When evaluating Impact degree 3, “Tactical”, and 4, “Strategic”, establish the direct ability for qualitative and quantitative contribution to the organization’s overall result (100%). MERCER
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Communication Factor
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Communication factor Overview To determine the degree for this factor: – Determine the nature of communication by: - Defining the most difficult and challenging communication that the job holder encounters - Determining how frequently the most difficult and challenging communication occurs – Determine the frame of the communication by: - Determining the communication audience - Determining the audience context
Communication
Frame
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Communication Factor Communication Frame
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Communication factor: Communication dimension Communication levels Nature of Communication
MERCER
Desired Outcome
Level of Communication
Statements, suggestions
Understanding of information
1. Convey
Reach agreement through flexibility
Comprehension of facts/policies
2. Adapt and Exchange
Affect change without commands
Acceptance of a concept, practice or approach
3. Influence
Strategic shorterterm communication
Acceptance through discussion and compromise
4. Negotiate
Important long-term communication
Acceptance of strategic agreement
5. Negotiate Long Term 48
Communication factor: Communication dimension Frequency of communication Level of Communication
Frequency
1. Convey
1. Frequent 1.5 Continuous
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2. Adapt and Exchange
1.5 Occasional 2. Frequent 2.5 Continuous
3. Influence
2.5 Occasional 3. Frequent 3.5 Continuous
4. Negotiate
3.5 Occasional 4. Frequent 4.5 Continuous
5. Negotiate Long Term
4.5 Occasional 5. Frequent
Occasional Few times a month
Frequent Regular but not daily
Continuous Daily
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Communication Factor Communication Frame
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Communication factor: Frame dimension Internal vs. external audience President and Chief Executive Officer Chief Human Resources Officer
Chief Financial Officer
Corporate Secretary
Chief Information Officer
Regional Director Asia / Pacific
Regional Director Europe
Regional Director Latin America
Regional Director North America
Managing Director
Managing Director
Managing Director Italy
Managing Director Great Britain
Managing Director Scandinavia
Director Manufacturing
Director Finance
Director Sales & Marketing
Director Human Resources
Director Logistics
Internal
External MERCER
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Communication factor: Frame dimension Nature of interests Shared
Divergent
Common goals
Conflicting objectives
Aligned interests
Contradicting interests
Mutual desire
Differing points of view
Willingly compromise
Reluctantly compromise
Discuss
Debate
Win-Win
Risk of Win-Lose
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Communication factor: Frame dimension Organisational frame
Frame 1 Internal Shared
Interests
2 External Shared
Interests
Interests
Interests
4 External Divergent
Interests
Interests Interests
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3 Internal Divergent
Interests
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Innovation Factor
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Innovation factor Overview Innovation relates to the requirements of the position to identify and make improvements to procedures, services, or products. Innovation also relates to the requirements to develop new ideas, methods, techniques, services and products. To determine the appropriate degree for this factor: – Identify the level of innovation required of the position. – Identify the level of complexity of the innovation. Innovation
Complexity
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Innovation Factor Innovation Complexity
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Innovation factor: Innovation dimension Overview Innovation falls into one of three broad categories:
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Constrained by existing policies
• Follow • Check
Focused on improvements
• Modify • Improve
Create new processes and products
• Create • Breakthrough
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Which Degree of Innovation?
INNOVATION - Limited changes expected from the position holder Follow
s Clerk from the position holder, eg. s Clerk. Limitedeg. changes expected
Check
- Make minor changes of existing procedures, processes Make minor changes withwith helphelp of existing procedures, processes, eg. HR Officer, eg. HR Officer, ant responsible for reconciliation, Quality responsible ant responsible for reconciliation, Quality control responsible for control checking products for checking products for defects on assembly line. for defects on assembly line.
Modify
- Resolve issues / problems by modifying / enhancing existing working method Resolve issues / problems by modifying / enhancing existing working method, eg. eg. ing Mgr responsible for changing ing procedures in order to reduce errors. ing Manager responsible for changing ing procedures in order to reduce errors.
Improve Create / Conceptualize Scientific/Technical Breakthrough
MERCER
Change/prevent issues/ problems by significantly improve entire process systems or or products - Change/prevent issues/ problems by significantly improve entire process systems products General Manager responsible changing organization reflect new eg.eg. General Manager responsible forfor changing thethe organization to to reflect new environment environment conditions and corporate conditions and corporate goals.goals. - Create new methods, techniques or products Create new methods, techniques or products, eg. Position devising new financial strategies Position devisingsources new financial strategies to gain access to uptapped sources of fund to gain eg. access to untapped of fund. - Develop unprecedented scientific or technical ideas Develop newnew andand unprecedented scientific or technical ideas, eg. High level research in eg. High level research in R&D R&D.
59
Innovation Factor Innovation Complexity
MERCER
Innovation factor: Complexity dimension Levels of complexity Complexity Defined
Difficult
In either In either Operational, Operational, Financial or Human Financial or Human area - Not easily area - Easily understood understood
Complex
Multi-dimensional
In any two of three dimensions i.e., Operational, Financial and Human area
In all three dimensions Operational, Financial and Human Involved directly in all three dimensions
MERCER
62
Knowledge Factor
MERCER
Knowledge factor Overview The degree for this factor depends upon: – Depth of knowledge required to accomplish objectives – The way knowledge is applied individually and within teams – The breadth in which the knowledge is to be applied.
Knowledge
Teams
MERCER
Breadth
65
Knowledge Factor Knowledge Teams Breadth
MERCER
Knowledge factor: Knowledge dimension Levels of knowledge In-depth management knowledge in most functions across several businesses of the corporation
8
In-depth management knowledge across several line and functions or businesses
7
Industry expert in the profession
6
organisation expert in the profession
5
Mastery of specific professional discipline at expert level
Broad management knowledge across several functional areas or businesses Broad knowledge of several, different areas across functions
4
Advanced knowledge of specific discipline within one’s own job area
3
Broader theoretical or advanced technical/operational know-how
2
Specialised commercial, technical or operational know-how
1
Fundamental know-how within narrow boundaries
Specialist MERCER
Generalist 67
Which degree of Knowledge ? KNOWLEDGE
Education
Limited Job Knowledge
Mandatory schooling
Basic Job Knowledge
Higher Secondary or Vocational education
Broad Job Knowledge
Specialized School
+
Learning Experience No previous experience (e.g. Data Entry Operator) Up to 6 months experience (e.g. s Clerk, Technician) 6 months up to 2 years experience (e.g. Project Coordinator, Process Engineer )
Expertise
University Degree
2 years up to 5 years experience (e.g. Senior ant )
MERCER
Professional Standard
University Degree
Organizational Generalist / Functional Specialist
University Degree
Broad Practical Experience / Functional Pre-eminence
University Degree
Broad and Deep Practical Experience
University Degree
5 years up to 8 years experience (e.g. Finance Head, Head of Sales) 8 years up to 12 years experience (e.g. Corporate Finance Head, Corporate HR Head) 12 years up to 16 years experience (e.g. Appointed Actuary, Head of Business Unit, Head of large-size organization within a corporation) More than 16 years experience (e.g. Head of a large complex corporation or unit with complex functions )
68
Knowledge Factor Knowledge Teams Breadth
MERCER
Knowledge factor: Teams dimension Team positions Team positions Team member
Team leader
and
MERCER
Teams manager
and
70
Team (Degree) Typical Examples • Team 1: Team Member The position holder is an individual contributor and is directly responsible for performing activities or discharging responsibilities • Team 1.5: Use team 1.5, if the position holder coordinates project activities or had functional management (dotted line management) • Team 2: Team Leader The position holder leads a team that is responsible for delivering outputs & results. For a group to be designated as a team, it should include at least 3 (excluding assistant or secretary) To be considered managing the team , the team leader should lead, schedule, allocate & monitor work (including performance appraisal) • Team 2.5: The position holder is responsible for a team with its own leader and has another team reporting directly • Team 3: Team Manager A Team Manager direct multiple teams, each of which has a team leader A Team Manager determines team structure and roles of
MERCER
71
Knowledge Factor Knowledge Teams Breadth
MERCER
Knowledge factor: Breadth dimension Breadth degrees Domestic
Regional
Regional
Global
Africa
MERCER
74
Knowledge factor: Breadth dimension Location examples Global All major time zones
Breadth
Domestic
Sub-Region
Regional
Multiple Regions
Degree
1
1.5
2
2.5
3
Continental region
Minimum two Continental regions
All regions of the world
Europe, Asia, Oceania, Africa, Latin America
EMEA
Americas and EMEA and Asia/Pacific
Application of knowledge Manage and/or apply results locally
Territory
MERCER
Locations within a country or Multiple countries neighbouring with diverse cultures countries with similar culture
USA, China
ASEAN, BENELUX, Nordics, Central America
75
Position Class
MERCER
Position class Sample role: Regional sales manager
Contribution
Degree 12 3 2
Communication
3.5
Size
Impact
Impact
Frame
4
Innovation
3 45
Innovation Complexity
2
Knowledge
4 2 1.5
Teams Breadth
MERCER
179
88
Communication
Knowledge
Points
130
Total Points
442
Position Class
?
77
Position class Sample role: Regional sales manager (continued)
MERCER
78
Position class Sample role: Regional sales manager
Contribution
Degree 12 3 2
Communication
3.5
Size
Impact
Impact
Frame
4
Innovation
3 45
Innovation Complexity
2
Knowledge
4 2 1.5
Teams Breadth
MERCER
179
88
Communication
Knowledge
Points
130
Total Points
442
Position Class
56
79
Appendix
MERCER
Career Stream Description - Management Management Career Stream Management Stream is the role focused on managing people and implementing policies and strategies to meet the organization’s objectives. 1. Senior Manager Manages within a nominated sub-function or related sub-functions; typically a highly experienced manager. Decisions tend to be more tactical and operational; geographic scope of operation tends to be at the country level. Typically able for budget and policy recommendations and medium term planning. 2. Manager Managing teams with focus on policy and strategy implementation and control rather than development; short-term operational/tactical responsibilities. * Note that not all Career Levels are available in the MUPCS framework.
MERCER
81
Career Stream Description - Management Management Career Stream 3. Team Leader (supervise Professionals) Leads/supervises a team of 2 or more professionals; first level manager of a work team that could comprise professionals, technical and/or istrative staff. Typically without budget or hire/fire authority. Focuses on mentoring, coaching, and coordination. 4. Team Leader (supervise Para-Professionals) Leads/supervises a team of 2 or more Para-professionals; first level manager of a work team that comprises Para- professionals. Typically without budget or hire/fire authority. Focuses on mentoring, coaching, and coordination. * Note that not all Career Levels are available in the MUPCS framework.
.
MERCER
82
Career Stream Description - Professional Professional Career Stream Professional Stream is the role intended for individual contributors without a specific supervisory responsibility, although it may allow for coaching / mentoring less experienced staff. These roles require a degree or equivalent. 1. Pre-Eminent Individual contributor; superior in excellence; internationally recognized leader and contributor in field of expertise, speaks at national and international forums, contributes to the body of knowledge within area of expertise. 2. Expert Individual contributor and acknowledged expert both within the organization as well as within other organizations. Typically participates in industry/knowledge reference groups. Involves mastery of a specialized discipline and thorough understanding of a number of disciplines. May also require development of new solutions for complex projects. * Note that not all Career Levels are available in the MUPCS framework.
MERCER
83
Career Stream Description - Professional Professional Career Stream 3. Specialist Individual contributor with comprehensive knowledge in specific area. Ability to execute highly complex or specialized projects; adapts precedent and may make significant departures from traditional approaches to develop solutions. 4. Senior Individual contributor that is fully proficient in applying established standards; knowledge based acquired from several years of experience in particular area. Works independently; may instruct or coach other professionals. 5. Experienced Individual contributor that works under limited supervision. Applies subject matter knowledge; requires capacity to understand specific needs or requirements to apply skills/knowledge. 6. Entry Individual contributor representing the most common entry point for this career stream; works under direct supervision. * Note that not all Career Levels are available in the MUPCS framework. MERCER
84
Career Stream Description – Para-Professional Para-Professional Career Stream Para-Professional Stream is a skilled, semi-skilled or unskilled role without supervisory responsibility. Roles in this stream do not require a university degree. They may require some formal professional training and/or certification. 1. Senior Individual contributor that is fully proficient in applying established standards; knowledge based acquired from several years of experience in particular area. Works independently; may instruct or coach other professionals. 2. Experienced Individual contributor that works under limited supervision. Applies subject matter knowledge; requires capacity to understand specific needs or requirements to apply skills/knowledge. 3. Entry Individual contributor representing the most common entry point for this career stream; works under direct supervision. * Note that not all Career Levels are available in the MUPCS framework.
MERCER
85
Questions?
MERCER
TM
e-IPE Online Position Evaluation System Demo
What is e-IPE? • e-IPE is a web application that puts the power of the Mercer International Position Evaluation System in your hands • It allows you to choose benchmark positions for survey participation, and modify the position evaluations to reflect the position in your organization • Review and update your company details online • No third-party software to load onto your corporate computer • Enhancements are immediately available to you • protected to ensure confidentiality
MERCER
88
How do I use e-IPE? • to the internet: http://eipe.imercer.com • to the site using your name and (supplied to you by your Mercer representative) • the guide, list of benchmark positions, and IPE manual, and familiarize yourself with them • Review and update your company details • Add and evaluate benchmark positions • Link benchmark positions to your company’s Actual Title for the position • Review using the Reporting functions • You are ready to submit your data for the survey!
MERCER
89
How To Use e-IPE ? to the site & Change • to the internet: http://eipe.imercer.com/ • to the site using your name and (supplied to you by your Mercer representative) • the guide and IPE manual, and familiarize yourself with them • From the Main Menu, Survey s navigate to the Home Module and change your
MERCER
90
How To Use e-IPE ? Organization Module - Update Company Size From the Main Menu, Survey s navigate to the Organization Module to • Review and update your company details • Review and update size of your company • Review and update information
MERCER
91
How To Use e-IPE ? Organization Module - Update Company Size From the Main Menu, Survey s navigate to the Organization Module to • Review and update your company details • Review and update size of your company • Review and update information
MERCER
92
How To Use e-IPE ? Position Module - Match to Survey Benchmarks From the Main Menu, Survey s navigate to the Position Module to • Click on the “Job Match” button to add Survey Mercer Benchmarks for the Job Matching • In the “Position Match” screen, select Organization and search Benchmark Position that you want to add and click the “Go” button • Tick your Benchmarks by using checkboxes and click the “Create” button. After that “Position Evaluation List” screen will go back. MERCER
93
How To Use e-IPE ? Position Module – Modify the Standard Position Evaluations To review and modify Position Evaluation to better reflect the role: • Select Positions and press “Grid Edit” button. • Add “Actual title” • Modify the standard position evaluations to reflect the actual evaluations of the position in your organization through IPE factors
MERCER
94
How To Use e-IPE ? Incumbent Module - Assign Incumbents to Positions (optional) From the Main Menu, navigates to the Incumbent Module Survey s can : • Manage Company Incumbent List • Assign one or multiple Incumbents to a Position • Export a list of Incumbents with your Mercer Benchmark Titles and Position Class
MERCER
95
How To Use e-IPE ? Incumbent Module – How to Assign Incumbents to Positions Survey can add new Incumbents using two methods: Manually, by adding individual Incumbents using the “Add” button Bulk Import using a wizard (“Import” button)
MERCER
96
How To Use e-IPE ? Incumbent Module – Manually Assign Incumbents to Positions Manual method of adding Incumbents: After pressing the “Add” button on the Incumbent List page, the following screen appears Survey must provide all required fields, marked with asterisk (*) From this screen Survey can also directly match Incumbent to Company Position
MERCER
97
How To Use e-IPE ? Incumbent Module – Bulk Import Incumbents Bulk Import method for adding Incumbents: After pressing the “Import” button on the Incumbent List page, Survey enters the import wizzard Survey can generate a blank template by providing a file name and clicking on the “Export” button Once all required fields are completed and the import file has been saved, clicks on the “Next” button to enter the Import screen MERCER
98
How To Use e-IPE ? Incumbent Module – Bulk Import Incumbents To import Incumbents in bulk from an import file: Survey specifies the location of the import file Presses the “Import” button to load the file System begins processing the import file & when finished displays import status: If errors occur, can enter Import Summary page to find out about the details and correct them in the import file. MERCER
99
How To Use e-IPE ? Incumbent Module – Asg Incumbents to Positions In the Incumbent List select one or more Incumbents and click the “Assign” button to match to Comapny Position
MERCER
100
How To Use e-IPE ? Incumbent Module – Asg Incumbents to Positions In the Position Evaluation List select a Position and click the “Assign Incumbent” button to match to an Incumbent
MERCER
101
How To Use e-IPE ? Reports Module
MERCER
102
How To Use e-IPE ? Reports Module – Report list
MERCER
103
How To Use e-IPE ? Reports Module – ing a Report
MERCER
104
How is this used in survey data submission? • The position evaluations are stored in our online database only. • The Actual Title you entered into eIPE system should corresponds to your data collection kits. • Add the finalised MUPC and PC from eIPE system to the submitted incumbent in data collection kit.
MERCER
105
MERCER
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