Job Rate can be simple or complex to calculate for an individual organization, but because different organizations have different compensation philosophies, use different methods of compensation and have access to compensation data in different formats the Compensation Tool provides many different ways of entering Job and Employee compensation data. Please contact your Legal representation or an HCI consultant if you are unclear on what data is required to calculated the Job Rate in your organization.
NOT ALL FIELDS ARE REQUIRED TO CALCULATE JOB RATE.
The Job Rate is simply the maximum rate an employee can expect to earn in a Job Class and is a combination of base pay plus certain variable pay and possibly additional benefits.
You can add this data with in the Employee Data section and Job Data and the Compensation Tool will perform the analysis to determine the maximum Job Rate. You can also customize the calculations within the Job Data section by clicking VIEW JOB RATE CALCULATION button.
Job Rate is a combination of Base Rate, Variable Rate and Benefits. At a high level, the Compensation Tool uses the following logic to determining Job Rate (example provided).
Base Pay Rate
Maximum of the Maximum Employee Data vs Job Data after rates are converted to hourly rates (as applicable):
Example -Job Class 1
Data:
Project Management section:
Number of Annual Hours: 1850
Employee Data section:
Employee A:
Annual Base: $50000
Employee B:
Actual Earnings: $45000
Actual Hours: 1700 hours
Job Data section:
Highest Band Hourly: $27.00
Calculations:
Employee A Hourly Rate: $27.03 (50000 / 1850)
Employee B Hourly Rate: $26.47 (45000 / 1700)
Job Data Highest Band: $27.00
Therefore the Base Pay Rate is $27.03 as Employee A was paid above the Band Maximum and hence is a higher attainable base pay.
Variable Pay Rate
If Job Data exist, this will supersede any data inputted into the Employee Data section, all data is entered on an annual basis and hourly rates are calculated. This is done a on a per variable type basis (bonus, commission, other).
Example Job Class 1
Data:
Project Management section:
Number of Annual Hours: 1850
Employee Data section:
Employee A:
Actual Bonus: $5000
Actual Commission: $10000
Employee B:
Actual Commission: $8500
Other Variable: $500
Actual Hours: 1700 hours
Job Data section:
Target Bonus: $6000
Target Commission: Not Provided
Other Variable: Not Provided
Calculations:
Bonus: $3.24 (6000 / 1850) (from Job Data)
Commission: Employee A = 5.41 (8500 / 1850) , Employee B = $5.00 (8500 / 1700) Job Data = Not Provided (maximum of employees as job data not present)
Other: Employee B =$0.29 (maximum of employees as job data not present)
Total Variable: $8.94
Benefits
Benefits are only available in the Job Data section, as any differences between individual employees would mean that the employee as in different Job Classes. All benefits should be entered on a annual basis and will be calculated hourly and added to the Job Rate calculations. Note, only Benefits that are different between job classes are required (example: company paid uniform for specific Job Classes).
Data:
No Benefits data Provided and hence no calculations.
FINAL JOB RATE
$27.03+$8.94 = $35.97
You can also customize the calculations within the Job Data section by clicking VIEW JOB RATE CALCULATION button.