Alignment of a grading and remuneration structure in remuneration by gyvwpsjkko

VIEWS: 2,371 PAGES: 22

									    Alignment of a grading and
     remuneration structure in
        Eskom’s Distribution
             Division

1
    Alignment of a grading and remuneration
    structure
    Background:
    • 30 000 Employees across 9 Divisions
       • 15000 in Distribution Division
            - 450 individually graded jobs
            - 270 work sites
    • Challenge - Retention vs need to maintain pay equity
       •   Business requirements
       •   External impact
       •   Diverse staff profile
       •   Wide geographic distribution
            - Sandton to Van Zyls Rust.
    • Trade Union involvement
2
    Alignment of a grading and remuneration
    structure

    Eskom Remuneration background:
    • Broad band Paterson Grading system.
       - Decision to implement TASK
    • Well defined broad band salary structure
       - (AAA – D5 )
    • Annual salary reviews –
       - Bargaining Unit - negotiated
       - Managerial staff – Based on broad band generic market
          movement


3
    Alignment of a grading and remuneration
    structure

    The challenge:

    • Balance the business goals and individuals needs
    • Internal framework – External benchmarks.
    • Control on salary account
    • Structure and flexibility.




4
    Alignment of a grading and remuneration
    structure


     Objectives of the Dx Remuneration Strategy
     • Should attract and retain skilled employees
        - maintain market position
        - ability to place staff at all work sites
     • Provide a meaningful framework and independent,
       external, defensible benchmarks


5
    Alignment of a grading and remuneration
    structure
     External Market analysis vs Eskom CCU.
     CCU’s Remuneration issues
        Qualification     C5     C4      C3

        B- Hons     &
      Prof registration
          (NQF 7)


         B-Degree
          (NQF 6)

          Technikon
           Diploma
           (NQF 5)

          Grade 12 /
           Artisan                            1
           (NQF 4)

6
       Alignment of a grading and remuneration
       structure
                                                       Internal application
    2005 - 2006 CCU SCALE



                            R 212 520
                                        6
                                                        75th



                                            Job 1
                            R 192 645 5                         50th of market = R 192 600
                                                        25th
                                        4
                            R 172 770                MIDPOINT
                                        3
                                                        75th
                                             Job 2


                            R 152 895 2                         50th of market = R 156 900
                                                         25th
                                        1
                            R 133 020                                                        2
7
    Alignment of a grading and remuneration
    structure

     Internal Equity               External Equity

     “Comparison of pay levels     “Comparison of pay levels
       within the organisation”    with the market”


     - Job / Role Grading          - Salary Surveys
                        Dx Salary approach
       • Develop a salary structure
       • Manage salary movements based on
           • Competence
           • Skill Acquisition

8
    Alignment of a grading and remuneration
    structure

     Remuneration Principles:
     • Paying competent employees on the 50th percentile
       of job specific benchmarks in the external market.
     • Managing salaries of newly appointed / promoted
       employees over time to the 50th percentile in a
       controlled process taking account of acquisition of the
       required competence for the job.
     • Ensuring remuneration of critical and scares skills
       above the 50th for the retention


9
     Alignment of a grading and remuneration
     structure

          Understand                                 The Process
          Dx Reward
           Principles


                          Understand the job


                                                Understand
                                                 the market
                                               value of the job

                                                                  Employee worth
                                                                   to company
     Eg: Senior Tech in Engineer post

10
     Alignment of a grading and remuneration
     structure

     Job definition:
         A meaningful combination of activities / outputs that can be
         performed by a single individual, at a competent level, given a
                   logical skills set at a specific point in time.

                                                  Employee
           JOB           Versus         Entry   Competent.   Advanced

                                                 Career
      • Evaluation of the actual job contribution:
          - Benchmark the job, not the incumbent


11
     Alignment of a grading and remuneration
     structure
     The surveys used to measure the market

     - Deloittes & Touche – Human Capital Corporation:
       National Remuneration Guide – Surveys
       (September report)

     - P-E Corporate Services: General Staff Survey
       (September report)



12
     Alignment of a grading and remuneration
     structure

     Implementation:
     • 450 individually graded jobs (Paterson Broadband)
        • Assumed narrowband grading (C1 / C2 / C3)
     • Developed 220 job specific external benchmarks
     • Required Schedule Information:
        •   Reflect salaries paid at the 25th, 50th and 75th percentiles
        •   Total packages paid at the 25th, 50th and 75th percentiles




13
     Alignment of a grading and remuneration
     structure

             Internal                 External



           Job = CCL              Task Grade 10
          FS Dispatcher         Maintenance Planner
         Qualified Artisan       Qualified Artisan



      Responsible to dispatch   Responsible to schedule
      resources and optimize        resources and
      maintenance processes     maintenance processes



14
        Alignment of a grading and remuneration
        structure

                        PRODUCTION SUPERINTENDENT C5                      PRODUCTION SUPERINTENDENT C5    PE &
     FIELD SERVICES R 159,810 R 184,980 R 208,200                       R 251,250 R 282,870 R 326,430     HCC
     DISPATCH           MAINTENANCE PLANNER - C3  NTC III with trade &      MAINTENANCE PLANNER - C3      HCC      R 171,000
     SHIFT          R 144,450 R 156,990 R 169,560 > 3 years maint. exp. R 219,960 R 240,540 R 257,160    108664
     INTEGRATOR     R 152,130 R 171,000 R 188,880                       R 235,620 R 261,720 R 291,810
     TASK 12 (C4)      P.25      P.50      P.75                            P.25      P.50       P.75

                            SENIOR TECHNICIAN (CU)     Recognised dipl.       SENIOR TECHNICIAN (CU)     HCC +
     FIELD SERVICES R 146,070 R 167,670 R 191,910 > 6 years experience R 211,620 R 246,450 R 290,340       PE
     SCHEDULER          MAINTENANCE PLANNER - C3  NTC III with trade &      MAINTENANCE PLANNER - C3      HCC      R 162,330
                    R 144,450 R 156,990 R 169,560 > 3 years maint. exp. R 219,960 R 240,540 R 257,160    108664
                    R 145,260 R 162,330 R 180,750                       R 215,790 R 243,510 R 273,750
     CCU              P.25       P.50      P.75                            P.25      P.50       P.75


     TECHNICAL             FOREMAN (HI-TECH) (C4)                              FOREMAN (HI-TECH) (C4)     PE
     SERVICES        R 155,610 R 178,680 R 210,240 Controls > 25 staff    R 226,290 R 268,530 R 317,820 GS060140
     OFFICER - CCU + FOREMAN/SUPERVISOR (SITE) (C4)                        FOREMAN/SUPERVISOR (SITE) (C4) PE
     TECHNICAL       R 134,160 R 167,340 R 194,040 Controls > 25 staff    R 215,520 R 251,280 R 293,640 GS060145   R 173,010
     SPECIALIST      R 144,900 R 173,010 R 202,140                        R 220,920 R 259,920 R 305,730
     OFFICER - CCU      P.25      P.50         P.75                          P.25      P.50       P.75



15
          Alignment of a grading and
          remuneration structure

                                           Nat Dip (H)/B.Tech
                                           and registered as
                 IND          G EER(C
                    USTRIAL EN IN     5)   PA0 Technologist     IN STR EN INEER(C
                                                                  DU IAL G       5)        PE    R196,680   SALARYIF IN BENT IS
                                                                                                                       CUM
FIELDSERVICES R158,100 R196,680 R232,890 or Govt. Cert. of   R255,780 R296,010 R337,080 GS071245            ANIND     IAL
                                                                                                                  USTR ENG  INEER
 - IND    IAL
      USTR - R158,100 R196,680 R232,890 Comp. & Registered   R255,780 R296,010 R337,080                       ITH
                                                                                                            W AT LEAST 4 Y. EXP.
ENG  INEER     P.25        P.50     P.75 Certified Engineer   P.25        P.50     P.75
CCU               U
                Q ALIFIEDTECH IAN- (CU
                               NIC       ) Recogn. Dip. > 6 y   QUALIFIEDTECH IAN- (C
                                                                              NIC    U)   HCC               SALARYIF IN BENT IS
                                                                                                                       CUM
              R155,430 R168,960 R195,540 exp and as per per- R216,300 R247,980 R290,550 108314                     R HNICIAN
                                                                                                            ASENIO TEC        :
                 Q UALIFIEDTEC ICIAN- C
                              HN       3   sonal developmplan     U          HN
                                                                Q ALIFIEDTEC ICIAN- C3     PE    R167,670   M KET RELATEDPO
                                                                                                             AR              INT
              R136,680 R166,350 R188,220 S4 Technical or     R206,910 R244,890 R290,070 GS070045            HASBEENDETERM  INED
                R146,070 R167,670 R191,880 Technicians Dipl. R211,620 R246,450 R290,310                     AT R168,510
                 P.25      P.50    P.75 > 5 years experience P.25         P.50     P.75




   16
     Alignment of a grading and remuneration
     structure

                                                             Market 50th
          The Job                           Market Value
                                                             R 159 560
                            Appropriate
      C       Job 1 (C2)   Market segment
      C
              Job 2 (C1)    Appropriate
      L                    Market segment
                                                             Market 50th
                                              Market Value   R 129 720




17
     Alignment of a grading and remuneration
     structure

                                 Critical and Scares
                                        75th
                      Job Benchmark
                         50th

        Entry level
         25th



18
     Alignment of a grading and remuneration
     structure

       Movements between similar graded Paterson
         broadband jobs can be “promotion” or “demotion”

           Job 3
                                     Allow the employee to move:
           50th
                                     • Grow career
                                     • Gain business understanding.
                          Job 2
                          50th

           Job 1
           50th



19
                                               Electricity Delivery pay line
        220000
                                                                                                                                      Manuf act ur ing Sect or
        210000                                                                                                                        Cur ve
        200000
                                                                                                                                                                                      E D Fi el d
        190000                                                                                                                                                                        Se r v i c e s

        180000                                                                                                                                                                        M anager



        170000                                                                                Head of P r ot ect i on
                                                                                              Head of DC Ser v i c es
        160000                                                                                Head of M et er i ng
                                                                                              Head of T el ec ont r ol
        150000
        140000                                                                  Head of Shi f t Net wor k
                                                                                M anagement                                                         Head of E D P r oj ec t
        130000
     Pay level




                                                                              E D P r oj ec t E ngi neer i ng                         P r oj ec t E ng Des i gn & Co-or di nat or

        120000                                                                T ec hnol ogy E ng I nv es t i gat or                   Set t i ngs E ngi neer

                                                                                                                                                 Sn r T e c h P r o t e c t i on
        110000                                 Cont r ol l er - Net wor k

                                               T echni ci an P r otect i on
                                                                                                                                                 Sn r T e c h D C Se r v i c e s
                                                                                                                                                 Sn r T e c h M e t e r i n g
        100000                                 T e c h n i c i a n D C Se r v i c e s                 Net wor k Out age Sc hedul er
                                                                                                                                                 Sn r T e c h T e l e c o n t r o l
                                               T echni ci an M et er i ng
         90000                                 T echni ci an T el econt r ol

         80000
         70000
         60000
         50000
         40000
         30000
         20000
         10000
     TASK grade4             5     6       7         8               9           10               11              12          13             14                15             16             17        18   19
                 Manufac 25th percentile                         Manufac 50th percentile                                                                       Manufac75th percentile
                 HCC Survey                                      HCC Survey[adjusted]                                                                          PE Corp Survey [adjusted]
                 Eskom data
20
                 Alignment of a grading and remuneration
                 structure
                                                                     Salary Increases M/P & S1-bands October 2006
                                                                                                                                                                                             Current
                                                                                                                                                                                             Salary




                                                                                                                                                                                             New rec
                                                                                                                                                                                             Salary




                                                                                                                                                                                             AVG sal of
                                                                                                                                                                                             R&S




                                                                                                                                                                                             Market
                                                                                                                                                                                             Salary P25
Amount




         R 448,140
                                                                                                                                                                                             Market
                                                                                                                                                                                             Salary
                                                                                                                                                                                             (P50)


                                                                                                                                                                                             Max of
                                                                                                                                                                                             Salary
                                                                                                                                                                                             scale


                                                                                                                                                                                             Market
                                                                                                                                                                                             Salary P75



         R 339,330




                                                                                                                                                EE




                                                                                                                                                                                   MM
                                                                                                                                      CC

                                                                                                                                           DD




                                                                                                                                                          HH




                                                                                                                                                                                        NN
                                                                                                                                                     FF




                                                                                                                                                               II
                                     E




                                                                 M




                                                                             P




                                                                                                                                                                    JJ
                             C

                                 D




                                             H




                                                                     N




                                                                                     R




                                                                                                        U
                                         F




                                                 I




                                                                         O




                                                                                 Q




                                                                                                T




                                                                                                                W
                                                     J
                         B




                                                         K




                                                                                         S




                                                                                                                    X




                                                                                                                                 BB




                                                                                                                                                                         KK
                                                             L




                                                                                                                                                                              LL
                     A




                                                                                                            V




                                                                                                                        Y

                                                                                                                            AA
                                                                                             Sur name




         21
     Thank you !



22

								
To top