Mercer eIPE
Mercer eIPE
Mercer eIPE
Introduction to
Mercer’s
International Position
Evaluation System
Daniele Giugno, Geneva
www.mercer.com
Work Value Measurement measure, and value
differences in work
Jobs ranked using Classes/grades defined Market rates established Points assigned to jobs Points assigned to jobs
general criteria of worth using aspects of job for benchmark jobs; non- based on factors, based on factors, levels
to organisation (e.g., content; jobs assigned to benchmark jobs slotted degrees and points. and factor weights
importance or classes/grades in salary structure Universal factors and Customized factors and
complexity) weights weights to client
Simple Easy to explain Relationship to market Can quickly compare Can compare jobs
Strengths
Easy to maintain Easy to modify values jobs across functions across functions
Adaptable to job families Credible and organisations. Is perceived to be
Common links to market objective and consistent
Potential for bias Unusual jobs may be Interpretation needed to May seem inflexible Effort required to
Limitations
May over emphasize a “forced” slot jobs Administration may develop factors
single factor Potential for bias Difficult if poor data or seem to be a barrier Much effort to administer
fast changing market and implement
Volatile
Mercer 2
The Five Factors
Communication
Assess the nature of the necessary communication ability required by
2. a position.
Communication Determine both organisation frame and nature of interests of
Frame
communication contacts.
Mercer 3
Organisation Sizing
Mercer 4
Impact
Level of Contribution
1 2 3 4 5
NATURE OF
Limited Some Direct Significant Major
IMPACT
3 Tactical
4 Strategic
5 Visionary
Mercer 5
Communication
FRAME
1 2 3 4
COMMUNICATION Internal Shared External Shared Internal Divergent External Divergent
3 Influence
4 Negotiate
Negotiate
5
Long term
Mercer 6
Innovation
COMPLEXITY
1 2 3 4
INNOVATION Defined Difficult Complex Multi-Dimensional
1 Follow
3 Modify
4 Improve
Create /
5
Conceptualize
Scientific/Technical
6
Breakthrough
Mercer 7
Knowledge
TEAMS
1 2 3 BREADTH
KNOWLEDGE Team Member Team Leader Teams Manager
Domestic
Limited
1
Job Knowledge
Basic
2 Regional
Job Knowledge
Professional
5
Standard
Lead a team through application of
Organisational Generalist
6 broad knowledge of one job area or
/ Functional Specialist basic knowledge of several related job
Broad Practical Experience areas
7
/ Functional Preeminence
Broad and Deep
8
Practical Experience
Mercer 8
Risk
Environment
1 2 3
Low Moderate High
Risk Exposure Exposure Exposure
0 Normal
1 Mental
Mercer 9
Position Class Conversion Table
Mercer 10
Major IPE applications
Application in Human
IPE deliverables
Resources Management
A clear ranking of positions that is internally consistent Organisational analysis
A first analysis of the organisational effectiveness Remuneration
management
A global comparison of relations between positions
Recruitment
A starting point to establish position / competency
profiles Promotion and succession
planning
A database to support career planning and succession
HR information
An objective reference to solve title issues
HR controlling
A reliable base for an equitable salary structure
HR audits
A tool that facilitates market benchmarking
Mercer 11
Mapping of Position Evaluation Results
550 532 PLANT MANAGER 538 PLANT MANAGER 536 DEVELOPMENT MANAGER 546 QUALITY DIRECTOR
Van Gogh Rubens Rembrandt Pinturicchio
60
526
525 522 PLANT MANAGER A 511 LABORATORY MANAGER 516 PERSONNEL MANAGER 516 FINANCE DIRECTOR
Magritte Chagall Miro Gheduzzi
517 ADMINISTRATION 507 PRODUCTION MANAGER 506 SECTION MANAGER
59 MANAGER Matisse Picasso
512 De Vlaeminck 501 TECHNICAL MANAGER
PLANT MANAGER B Cézanne
501 507 Kandinsky
MAINTENANCE MANAGER
Klee
500 497 PROJECT MANAGER 497 SERVICE MANAGER 476 FINANCE MANAGER
Klimt Schiele Borromini
497 SALES MANAGER 491 PERSONNEL MANAGER
58 Raffaello Pozzo
492 PERSONNEL MANAGER 486 SALES MANAGER
Michelangelo Goya
476 481 EDP MANAGER 481 ADMINISTRATION
Leonardo MANAGER
Velasquez
475 472 PROMOTION MANAGER 465 ORGANISATION MANAGER 466 COORDINATOR 471 SERVICE MANAGER
Frangelico Lippi Van Eyck Dali
461 PRODUCTION MANAGER 455 MARKETING MANAGER 451 PROMOTION MANAGER
57 Hobbema Giotto Canaletto
451
Mercer 12
Problems with title comparisons
COMPANY A COMPANY B
TYPE OF COMPANY
Sales company Manufacturing and
Sales company
Organisation level MD MD
Admin X
Mercer 13
Structure Analysis
Position
Class
L-1
L-2
L-1 L-2
L-1
L-3 L-1
L-2 L-2
L-3
L-2
L-2 L-2
L-2
Mercer 14
The Position and the Person
Position
Class
Mercer 15
Promotion and consequences
Internal Reference
Grading Salary
V 290 X
Utopia
IV 220 X
Risk
III 170 X
Challenge
II 130 X
Recognition
I 100 X
Mercer 16
Market Pay Position
Euro 75 INTERNAL
REFERENCE
50
25
Position class
Mercer 17
Benchmarking
Visionary L 100% 5 5
Mercer 18
Position Evaluation process
Executive Interview’s
with focus on
direct reports
Mercer
Know-how Executive committee
transfer and • Approve evaluations
guidance
Focus groups
HR department Mercer
• Prepare benchmark evaluations
+ project team member Quality review
• Define internal terminology
Mercer 20
Communication
Mercer 21
Position Evaluation should focus on the Position -
not on the Person
Mercer 22
Mercer Global Offering
Information
IPE3 Tool Kit Consulting Communication Technology
Services
Provide IPE License Project Planning Understand Analyse Technology Total Remuneration
eIPE Unlimited Size of organisations behavioural needs and current tools Surveys
IPE3 System Manual Migrate existing IPE2 objectives Bespoke Surveys
& Consulting evaluations to IPE3 Assess the audience Outline possible Benefits and valuation
Handbook Role Clarification Create communication Technology options methodology
Internal IPE3 Guide Executive Position strategy and means LTI methodology
Develop and conduct evaluations Roll out the Support decision process
communications towards new Technology
Market Pricing
Internal training Establish new Global
strategy Provide IT platform PayMonitor
Provide data Benchmarks
collection and and process specific tools Global HR Monitor
Consolidate and peer
other support tools review evaluations - Mercer ePRISM Mercer Membership
Briefing of Mercer Redefine relationship - Mercer MerritNET
Consultants between position class - Mercer HR Suite
and grade level
Project Management
Mercer 23
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