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Mercer International Job Evaluation Method

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Mercer International Position Evaluation System (IPE System)

What is the Mercer International Job Evaluation Method? #

The IPE system (International Position Evaluation System) is a new method of position evaluation and one of the two most common position evaluation methods in the world. Through long-term research and development by many senior experts engaged in job evaluation, it has developed from the original basic method into the current easy-to-use IPE system. It contains the necessary factors for comparison of jobs in various industries and is continuously improved to meet the needs of the organization.

The IPE system implements a four-factor scoring system. These four factors contain the most decisive factors for different job requirements. Each factor can be further divided into two to three aspects, and each aspect has different degrees and proportions. The assessment process is as simple as selecting the appropriate level for each aspect, determining the corresponding score for that level, and then adding up the scores.

Position (position) evaluation is a position value measurement tool through “factor extraction” and scoring. As early as the 1970s and 1980s, job evaluation became popular in Europe and the United States and became a basic tool for internal human resources management. Survey results show that at that time, more than 70% of companies in the United States used job evaluation systems to help build job systems and serve as the basis for salary payments. However, when the United States gradually shifted the focus of human resources management from “position” to “performance”, Mercer Consulting, the world’s largest human resources management consulting company headquartered in the United States, has never abandoned this tool, but has taken it further. Developed to make it suitable for use by businesses worldwide, especially in European and Asian countries. In 2000, after Mercer Consulting merged with CRG (Corporate Resources Group), another professional human resources management consulting company in the world, it upgraded its assessment tool to the third version, making it the most simple and applicable assessment on the market. Tool – International Position Evaluation System (IPE, International Position Evaluation), which can not only compare companies of different sizes in different industries around the world, but is also suitable for job comparisons in various subsidiaries of large group companies.

This job evaluation system has a total of 4 factors, 10 latitudes, 104 levels, and a total score of 1225 points. The results of the assessment can be divided into 48 levels. The four factors of this evaluation system are: Impact, Communication, Innovation and Knowledge.

This is based on the 7 evaluation factors of the second version of the original system (impact on the enterprise, supervision and management, scope of responsibility, communication skills, qualifications, problem solving, environmental conditions) after a lot of scientific research Refining simplified results. In the joint research of more than 100 Mercer human resources chief consultants and many senior corporate human resources practitioners, it has been proven that in fact there are only two factors that are truly unrelated to each other – influence and knowledge. However, in order to reduce the bias caused by subjective factors in the evaluation process, two other relatively important factors are retained – communication and innovation.

The design purpose of Mercer’s International Position Evaluation System (IPE) #

The design purpose of Mercer’s International Position Evaluation System (IPE) It is to scientifically determine the relative value level of positions in an organization. It allows positions in different fields and functions, such as positions in marketing and finance, to be compared on a scale.

Mercer’s international job evaluation system takes into account the entire process of job input, process and output when selecting factors to determine job value. Factors that are independent of each other and have a substantial impact on the value of the position are screened, and the weight of each factor in the system is determined. These factors are chosen taking into account:

  • The orientation of factors reflects the business value orientation of the enterprise
  • Factors apply to all positions to some extent
  • Factors reflect the essence of job value
  • Factors are related but remain independent

Required factors for Mercer’s International Position Evaluation System (IPE) #

Mercer’s International Position Evaluation System (IPE) ) includes four required factors and one optional factor. These factors are:

1. Impact

2. Communication

3. Innovation

4. Knowledge

5. Danger (optional)

Overview of Mercer’s International Position Evaluation System (IPE) evaluation factors

The composition of the Mercer International Position Evaluation System (IPE) evaluation system #

The IPE system is divided into:

  • 4 Factors
  • 10 Dimensions Dimensions
  • 104 Degrees scale

A total of 1225 points. The assessment results can be divided into 48 levels in total. To put it simply, each position in the company is evaluated and scored on 4 factors and 10 dimensions.

 48 Position Classes

 Position Class Conversion

Total point rangePosition Class
26—5040
51—7541
76—10042
101—12543
126—15044
151—17545
176—20046
201—22547
226—25048
251—27549
276—30050
301—32551
326—35052
351—37553
376—40054
401—42555
Total point rangePosition Class
426—45056
451—47557
476—50058
501—52559
526—55060
551—57561
576—60062
601—62563
626—65064
651—67565
676—70066
701—72567
726—75068
751—77569
776—80070
801—82571
Total point rangePosition Class
826—85072
851—87573
876—90074
901—92575
926—95076
951—97577
976—100078
1001—102579
1026—105080
1051—107581
1076—110082
1101—112583
1126—115084
1151—117585
1176—120086
1201—122587
  • Before You Start…before the assessment starts
  1. Define Organization Determine the organization
  1. Review Organization Chart Review organization chart
  1. Review Position’s Role Position role clarification
  • Organizations within Corporation Determine the organizations within the group
  • An Organization Must IncludeAn organization must include
    • One line function at least includes at least one business unit
    • – Production
    • – Marketing and sales Marketing and sales
    • – Research / product development
    • And two supporting functions include two support departments
    • – Finance Finance
    • – Personnel Personnel

Mercer International Position Evaluation System (IPE) Factor Analysis #

Factor 1 Influence #

Influence factors consider the nature and scope of the position’s influence within its scope of responsibilities and operations. And use the contribution as an amendment.

This factor mainly considers the following three dimensions:

——Organizational size

——The impact of position within the organization

——The contribution of the position

Dimension 1: Organizational scale #

Definition of organizational scale: Organization refers to the scale of the organization where the position is located. This size number has been determined during the preparation phase. All positions within the organization are assessed against an identified organizational scale of the same size

Organization type

In order to determine the level of organizational size, it is necessary to:

1. Determine what type of organization you belong to

2. Multiply the number next to the organization type by the organization’s sales, assets, or costs/budget

3. Use the range for each degree listed in the economic table to select a level based on the organization’s adjusted sales or assets.

4. Personnel list. Select a degree level based on the total number of employees; scale the organization up or down by adding the levels based on the economic table and the people table and dividing by two (the organization size table is provided separately). If adjustment is needed, it should be tilted towards the proportion obtained in the economic table.

Note: If the organization has been operating for less than three years, please use the third year’s budgeted turnover.

Size Is Based on Size is based on. . .
  • Oranization Revenues
  • Number of Employees Number of employees
  • Type of Organization Organization type
Organization TypeMultiple
Based on sales or fee income
Manufacturing and Sales20
Business Services20
Investment Banking20
Assembly and Sales8
Insurance8
Sales5
Retail5
Trade4
 Degree Level is Determined By . . . Determination of scale level. . .
Size of Organization Degree Level Scale level of organization size

Example: Trading House (200 employees)

Example: Trading company (200 employees)

  • Table A Degree Level Table A scale: 4
  • Table B Degree Level Table B scale: 5
  • Calculated Average Average: 4.5

Degree Level for Size of Organization Scale level: 4

Dimension 2: Influence level #

Definition of each level of the dimensionExplanation
1. Deliverability
Deliver work results according to clear operating standards or instructions
The job requires working in accordance with established rules, standards, processes, etc. and delivering products or services. Most non-professional positions are delivery-based.
2. Operational
Work independently to achieve operational goals or service standards
Work under established goals and deliver work results independently. Most professional positions are operational. Most lower-level management positions are also operational positions because they are mainly responsible for the execution of tactics.
3. Tactical
Based on the organization’s overall business strategy, formulate and implement a tactical plan for a certain business/function, or determine the organization’s plan for new products and processes
Position requirements are determined by establishing the organization various standards, and develop and implement new products and processes, and formulate mid-term operational plans (usually 12-18 months) to support the realization of the organization’s overall strategy. Certain tactical positions are involved in advising on business strategies.
4. Strategic
According to the vision of the organization, establish and implement a company-level mid- and long-term strategy with a long-term focus (typically 3-5 years)
Job requirements directly establish and Implement major long-term business strategies at the company level that affect the long-term development of the organization (usually up to 3-5 years).
5. Vision
Lead an organization to develop and realize its mission, vision and values
Position requires leading the entire organization to formulate and realize the organization’s mission, vision and goals.
  • Determine Nature of Impact
  • Which Degree of Impact

Dimension 3: Contribution #

 Definition of each level of the dimension

1. Limited: Only an indiscernible contribution to operational results

2. Part: an easily identifiable contribution to the achievement of the result, but usually an indirect contribution

3. Direct: Have a direct and clear impact on the course of action that determines the outcome.

4. Significant: It has a significant or fundamental impact on the achievement of results.

5. Primary: plays a decisive role in achieving results

  • When determining the contribution of each position, it can be judged according to the definition
  • When determining the degree of contribution, the method of ranking and comparison is often used to determine the degree of contribution of each position.
  • When sorting and comparing, follow these steps:
    • -Compare positions at the same level together
    • -First find the position with “direct” contribution as the benchmark, and compare other positions with it to determine the order of contribution.
  • Select Level of Contribution
  • A Way to Calculate Impact
    • Take all positions with a strategic impact on the organization
    • Attribute a weight to each impact level (in total 100 %)
    • Identify level of impact
    • For all positions with strategic influence in the organization, give weights in terms of influence, and ensure that the sum of the weights is 100%. Clearly. Determine the level of influence based on weight
  • Impact Analysis Strategic Impact Hierarchy Analysis
  • Or, Simply Choose from Definitions
  • Size/Impact points

Factor 2 Communication #

The communication factor focuses on the communication skills required by the position. First, decide what type of communication the candidate requires, and then decide by selecting a description of the most difficult and challenging communications for the position.

Communication factors mainly consider the following two dimensions:

——Position communication method;
–Organization;

Dimension 1: Nature of communication #

When determining this dimension, you need to pay attention to:

  • When evaluating positions, consider the most difficult types of communication necessary to perform the duties of the position
  • Does this most difficult type of communication occur often or occasionally?
  • When judging this dimension, pay attention to the communication requirements reflected in the job responsibilities section of the job description.
Definition of each level of the dimensionExplanation
1. Transmission
Transmitting information through statements, suggestions, gestures or expressions
Only need to obtain or provide information, and do not need to process the information.
2. Interaction and communication
Make the other party understand through flexible explanations and expressions
Flexibly express and explain facts, events, policies, etc. according to different times, places, and situations, Make the other person understand.
3. Influence
Making the other party accept or change through communication rather than command or external force
Persuading others to accept the established concepts, viewpoints and methods. The communication process may require feedback from the other party. Make small adjustments to communication content.
4. Negotiation
Master the communication process through consultation and skillful mutual compromise, and finally reach an agreement
Persuade others to accept the complete plan or plan. The content of communication can include short-term operational issues, mid-term tactical issues and issues of partial strategic significance. During communication, the communication content needs to be flexibly adjusted according to the real-time situation.
5. Strategic Negotiation
Controlling communications that have long-term strategic significance and far-reaching impact on the organization
Persuading people with different views, positions and purposes to reach strategic agreement.

Dimension 2: Communication Structure #

Definition : The communication structure considers whether the communication scope of the position is internal or external to the organization, and whether the standpoints and wishes of the communicating parties are consistent or different. When determining this dimension, first determine the scope of communication and then determine whether the communication is consistent or divergent.

When determining this dimension, you need to pay attention to:

  • Internal: refers to the inside of an organization
  • External: refers to the outside of an organization
  • Sharing: All parties in the communication have the same standpoint and intention, and hope to reach a consensus through communication
  • Disagreement: It meets two scenarios: one party has no willingness to communicate; or one party holds a strong negative or skeptical attitude (whether the interests of both parties are consistent)
Definition of each level of the dimensionExplanation
1. Internal sharing
Within the organization, there is a common will to reach agreement on a certain issue
Communicate with people within the organization in order to achieve a common specific goal.
2. External sharing
Outside the organization, there is a common will to reach agreement on a certain issue
Communicate with people outside the organization who are consistent with the will or position.
3. Internal Disagreement
Within the organization, conflicts of goals or wishes make it difficult for both parties to reach agreement
Communicate with people or groups whose goals or roles within the organization fundamentally conflict.
4. External Disagreement
Outside the organization, conflicts of goals or wishes make it difficult for both parties to reach agreement
Communicate with people or groups whose goals or roles outside the organization fundamentally conflict.
  • Which Degree of Communication    
  • Determine Frame Determine the range
  • Determine Interests Determine shared or divergent interests
  • Or, Simply Choose from Definitions 

Factor three innovation #

The innovation factor focuses on the level of innovation required for the position. First, determine the level of innovation expected for the position. , and then determines the complexity of that innovation level. Identify the requirements of the position: Identify and improve programs, services, and products, or develop new ideas, methods, techniques, services, or products.

Innovation factors mainly consider the following two dimensions:

  • Innovation ability of the position
  • Complexity of the position

Dimension 1: Innovation Requirements #

Definition: Innovation requirements refer to what a position needs to perform its responsibilities The ability to adjust, modify, and create processes, methods, and technologies.

When determining this dimension, you need to pay attention to:

  • Innovation requirements are requirements for long-term job stability.
  • When judging this dimension, please refer to the requirements for innovation reflected in the job responsibilities section of the job description.
Definition of each level of the dimensionExplanation
1. Follow
Compare with established principles, processes or technologies and do not require changes
The position requires compliance with established clear guiding principles, processes or technologies and does not require changes to existing ones. any changes to the content.
2. Verification
Solving individual problems based on established principles, processes, and technologies
The position requires correcting or solving problems in certain links within the established principles, processes, and technical frameworks.
3. Improve
Strengthen or improve the performance or efficiency of a certain technology or process
The position requires periodic updates and modifications to existing processes, products, and technologies. Continuous improvement improves efficiency and performance.
4. Improve
Improve the entire existing process, system or method and make major changes
The position requires an overall improvement of the existing process, system or method to make it Significant changes have occurred to achieve the goals of performance and efficiency improvement.
5. Creation/Conceptualization
Create new concepts or methods
The position requires the creation of new methods, technologies and products that do not exist in the market. Since most positions require promotion based on the existing foundation, few positions reach this level.
6. Scientific/technical breakthroughs
Formating and bringing about new revolutionary changes in knowledge and technology
The position requires the development of new, unused scientific or Technical ideas or innovative methods.

Dimension 2: Complexity of Innovation #

Definition: The complexity of innovation refers to the complexity of the problems that job holders need to solve by themselves when innovating. Questions may be simple or involve many different aspects.

When determining this dimension, you need to pay attention to:

  • This dimension refers to the complexity of the innovation process
  • The meaning of multi-dimensional problems means that the solution of the problem requires involving and adjusting three resources: operations, finance and human resources. Operations includes both process and technology aspects
  • Which Degree of Innovation What degree of innovation?
  • Determine Innovation
  • Determine Complexity
  • Which Degree of Complexity 
  • Or, Simply Choose from Definitions 

COMPLEXITY

Factor Four Knowledge #

Knowledge refers to the level of knowledge required to achieve goals and create value at work. Acquisition may be through formal education or work experience. First specify the depth of applied knowledge, then indicate whether the position belongs to a team member, team leader, or multiple team managers, and finally identify the area in which the knowledge is applied. This factor is about the nature of the knowledge required by the position to accomplish goals and create value.

The knowledge factor mainly measures the following three latitudes:

  • Determine knowledge level
  • Determine team roles
  • Determine application width

Dimension 1: Knowledge requirements #

Definition: Knowledge requirements refer to the necessary knowledge required to perform job responsibilities. Knowledge may be acquired through formal education and/or work experience.

When determining this dimension, you need to pay attention to:

  • The knowledge dimension takes into account different positions at the same time, and the knowledge requirements may focus on depth or breadth.
  • The concept of knowledge here includes technical and professional knowledge, as well as managerial knowledge.
  • The knowledge requirements for the position are essential requirements for the position, not the highest requirement.
  • The academic qualifications or experience words used in the following explanations only indicate the process that this position usually requires the holder to go through to reach the level of competence.
  • When judging this dimension, you can refer to the knowledge requirements in the job description.
Definition of each level of the dimensionExplanation
1. Limited job knowledge
Basic knowledge of basic work practices and standards to perform a narrow range of job tasks
Position requires the applicant to possess only an elementary level of education. It is necessary to go through short-term induction training (within a few weeks or 1 to 2 months), so that you can master the knowledge required for the position.
2. Basic work knowledge
Need to master position-specific business (business, trade) knowledge and skills or need to be proficient in a specific technology/operation
Such positions often require candidates Only those with a college or above educational background, or in the absence of a professional educational background, more than 3 years of working experience in this field can master the unique skills of the position.
3. Broad working knowledge
Requires extensive knowledge and theory in many different aspects within a professional field
The position requires the holder to have academic qualifications and it will take a period of time (often requiring 1-3 years of practical experience), only those who have a broad understanding of multiple aspects of the field can be qualified for this position. Or, mastering specific techniques or operating methods through long-term practice after intermediate education.
4. Professional knowledge
Have proficient professional skills and knowledge in a specific field, and be able to integrate the company’s reality based on theory
The position requires the applicant to have academic education and long-term practice (It often requires a longer period of practice, such as 3 to 5 years). To achieve proficiency in a specific field, you can apply the theory in depth in practice. Or the position requires the candidate to have a broad understanding of multiple aspects of knowledge principles in a field, and need to have the ability to apply and guide others with this knowledge, and can serve as an enterprise expert.
5. Broad functional domain knowledge/senior professional knowledge
Have deep and broad knowledge and application capabilities in all aspects of a function; have an internal expert level in a specific professional field
The position requires candidates to have academic education and go through long-term practice (for example, 5-8 years). To be qualified for this position requires in-depth professional knowledge and practical experience in many different aspects within a function, and to be able to guide all aspects of work within this function. Or the position requires the candidate to have in-depth professional knowledge in a specific aspect within a functional scope and be an industry expert.

  • Determine Knowledge Determine the level of knowledge required

Dimension 2: Team role #

Definition: Team role refers to the way in which job requirements apply knowledge: applying knowledge Apply it to your own work, apply knowledge by leading a team, or apply knowledge by leading multiple teams.

Definition of each level of the dimensionExplanationKey points
1. Team members
Work independently and have no direct responsibility for leading others
The position only requires the incumbent to work independently and develop their expertise.
A rating of 1.5 may be given if the position requires coordinating related project activities or directing others in a team (e.g. project manager).
If the position is a department director, but there are less than 3 direct subordinates, a score of 1.5 will be given. (For example, the director of the enterprise management office).
No responsibility to lead others
2. Team leader
Lead the work of team members (at least 3), assign, coordinate, and supervise the work of team members
The position requires leading a team, and a team must have at least three team members (Personal assistants and secretaries are not counted). Lead a team with at least three people in the team
3. Multi-team manager
Guide more than 2 teams and decide the structure of the team and the roles of team members
The position requires leading multiple teams, each team is managed by a team leader .
If the position directly oversees one team and also indirectly oversees another team (managed by another team leader), a score of 2.5 will be given.
If you directly manage two or more teams at the same time, but the nature of the work between the teams is the same, a score of 2.5 points will be given.
Lead more than two teams
  • Determine Context OK
  • Example

Dimension 3: Application width #

Definition: Application width refers to the width or environment in which the position requires the application of knowledge, reflecting The geographical scope covered by the application of job knowledge.

Definition of each level of the dimensionExplanationKey points
1. Local
A country, or an adjacent country with a similar business environment
Position requirements only require the application of knowledge and skills within one country. If the job coverage is in neighboring countries with similar operating environments (such as Singapore and Malaysia), the score is also 1. If the position requires the application of knowledge in a part of a continent (such as Southeast Asia), the score may be 1.5. The scope of responsibilities of the position is within a country
2. Intercontinental
Intercontinental region (Europe, Asia, Latin America)
Position requires the application of knowledge and skills in several countries within a region. If the job covers 2 regions (such as Europe and Asia), the score is 2.5. The position requires responsibility for business operations in multiple countries within a continent.
3. Global
All regions of the world
Position requires the application of knowledge in all regions of the world. Position requirements: Responsible for business operations in all regions around the world
  • Determine Breadth Determine the width
  • Or, Simply Choose from Definitions 
  • Position Evaluation SummaryPosition Evaluation Summary

Sample Evaluation evaluation example

Impact:177
Communication:50
Innovation Innovation:50
Knowledge knowledge:105
PointsScore:382

 So, what do these points mean

  • Position Class Conversion Tab Position Evaluation Conversion Table
  • Evaluation Process
  1. Select benchmark positions Select standard positions
  2. Gather data on benchmark positions Collect data on standard positions
  3. Select position analysts Select evaluation analysts
  4. Form evaluation committee organization evaluation committee
  5. Communicate the process to those involved communication
  6. Train evaluation committee training
  7. Evaluate positions Evaluate positions
  8. Put the evaluation results to use Use position evaluation results
  • Selection of Benchmark Positions
  • Benchmarks should be representative Standard positions need to be representative
  • Job-holder should be representative
  • The higher up, the more unique
  • Benchmarking Standard Positions
  • Position Data Gathering Collecting position data
  • Gather data data collection
    • – Review company materials Review company materials
    • – Review existing Position Descriptions Review existing position descriptions
    • – Interview key personnel Interview with key personnel
  • Confirm positions Confirm positions
    • – Use existing Position Descriptions, or
    • – Use position analysis questionnaire, or
    • – Modify Position Descriptions, or
    • – Write new Position Descriptions Write new position descriptions
  • The Evaluation Committee
  • Cross functional experience is a plus requires cross-departmental experience
  • CredibilityIntegrity
  • Members should be same level and status Members should be equal
  • Communication
  • Looking at Position; not Position-holder Focusing on the position, not the holder
  • Need to know market position Need to know the situation of similar positions in the market
  • Using well tested evaluation methodology
    • – Fairly and consistently evaluates jobs Fairly and systematically evaluates positions
    • – Can compare all types of jobs Can compare all positions
  • Those that know the jobs do evaluations
  • JDs is the major source of job data Job description is the main source of job information
  • Training
  • Learning by practice
  • No training, no participation No training, no evaluation
  • Getting motivation
  • Evaluation
  • All evaluations are tentative until validation All evaluations are tentative until validation
  • Evaluating Position not Position-holderEvaluating position rather than holder
  • Considering competent, acceptable performanceConsidering competent, acceptable performance
  • Evaluating current or the nearest future situation Evaluating the current situation or the nearest future situation of the position
  • Committee members represent the management
  • Evaluations are group’s decisionJob evaluation is a collective decision
    • – Group must defend it together
    • – No dissenting opinion
  • Evaluations correct when evaluated Once the evaluation is completed, the evaluation results are authoritative within the organization
    • – When changes and reorganizations take place, evaluations
  • redone Redo the assessment when changes and organizational restructuring occur
  • The role of the evaluator in the evaluation process:

Application of Mercer International Job Evaluation Method #

Before conducting an evaluation of specific positions, the size of the company must first be determined. It is conceivable that an international organization with more than 10,000 people and a small company with 20 or 30 people cannot be compared on the same platform without adjustments. In this particular factor, the company’s sales, number of employees, and type of organization (manufacturing, assembly, sales, or distribution) need to be considered to increase or decrease the size of the organization. For example, a “full-featured” manufacturing company with an R&D organization and sales department can obtain a sales multiplier of 20 times, thereby greatly enlarging the size of its organization. Sales-oriented companies generally have a multiplier of 5, while distribution-type companies generally have a multiplier of 4.

Mercer International Job Evaluation Method In addition, the number of employees is also an important scale factor. The job requirements for managing 500 people and managing 5 people are obviously different. With the help of this factor adjustment, the IPE evaluation method can put enterprises of different sizes and types on the same comparison platform.

  • A clear ranking of positions A clear ranking of positions

Clear Ranking of Positions

  • A reliable base for an equitable salary structure As a reliable base for an equitable salary structure

Salary Structure – Company Z Z company salary structure

  • A global overview of relations between positions A macroscopic understanding of the mutual relationships between positions

Position Evaluation Position Evaluation

LevelAdministration DepartmentPersonnel DepartmentFinance DepartmentSales DepartmentCommerce DepartmentTraining Department
56
55Regional Sales Manager
54Human Resources ManagerFinancial ManagerMarketing Manager
53Business Department Manager
52Administrative ManagerRecruitment Manager
Compensation and Benefits Manager
Training Department Manager
51Senior Human Resources RepresentativeSenior Accounting
50Sales Representative
49Administrative representativePersonnel representativeAccountingBusiness representative
48Sales Assistant
  • A starting point for position/person profiles

The Position and The Incumbent Comparison of positions and incumbents

  • A database for career planning and succession Career development and succession database

Promotion and Consequences

  • An objective reference to solve titling issuesAn objective reference to solve titling issues

Position Evaluation Position Evaluation

LevelAdministration DepartmentPersonnel DepartmentFinance DepartmentSales DepartmentCommerce DepartmentTraining Department
56HR Director
55Administrative DirectorRegional Sales ManagerTraining Director
54Human Resources ManagerFinancial ManagerMarketing Manager
53Business Department Manager
52Administrative ManagerRecruitment Manager
Compensation and Benefits Manager
Senior Sales RepresentativeTraining Department Manager
51Senior Human Resources RepresentativeSenior Accountant
50Sales Representative
49Administrative representativePersonnel representativeAccountingBusiness representative
48Sales Assistant
  • A means of market comparison

 Your Position vs. Market 

Evaluation principles of IPE system #

 Evaluation principles  Evaluation Rules

1. Evaluate Top Down Position evaluation from top to bottom

2. No one may evaluate own position No one may evaluate own position

3. Check internal equity Check internal balance

  • Rank all positions evaluated according to size Rank according to the level of the evaluated position
  • Compare across all divisions or departments Compare positions across departments
  • Calibrate to ensure equity across the board

Evaluation steps of IPE system #

 Evaluation steps Evaluation Process

1. Select benchmark positions Select standard positions

2. Gather data on benchmark positions Standard position information collection

3. Select position analysts Select position analysts

4. Form evaluation committee Establish an evaluation committee

5. Communicate the process to those involved

6. Train evaluation committee training evaluation committee

7. Evaluate positions Position evaluation

8. Put the evaluation results to use Apply the evaluation results

IPE System Scoring Manual (Third Edition) #

The IPE system implements a four-factor scoring system. These four factors contain the most decisive factors for different job requirements. Each factor can be further divided into two to three aspects, and each aspect has different degrees and proportions. The assessment process is as simple as selecting the appropriate level for each aspect, determining the corresponding score for that level, and then adding up the scores.

There is a job evaluation score and grade conversion table at the end of this manual. Because small points differences do not account for substantial differences in job value, we recommend using the point-to-grade conversion table at the end of this manual to convert the total points earned for each position into job levels before making comparisons. This conversion is very convenient and also makes this evaluation system more practical. Job level also serves as the basis for salary survey comparisons.

Factor 1: Impact #

  • Type and size of organization
Determine a degree level for the size of the organization
1Determine which of the following categories of institutions you belong to;
2Use the multiple next to the organization category to multiply the organization’s revenue, sales, assets, or budget;
3Use the levels listed in Table A, based on the organization’s adjusted sales or assets (in millions of dollars. If operating less than 3 years, use budgeted turnover) , selection level;
4Use Table B to modify the organization size by selecting the level based on the total number of employees.
Institution CategoryMultiple
Based on sales or revenue:
Manufacturing and Sales20
Business Services20
Investment Banking20
Assembly and Sales8
Insurance8
Sales5
Retail5
Trade4
Based on cost/budget
Manufacturing20
Research and Development20
Government Services20
Based on assets
Retail or Commercial Bank1
Real Estate/Property1

 Organization size table

This factor evaluates the impact and contribution level of the position. First determine the nature of the position’s impact and then determine whether the level of contribution is limited, partial, direct, significant, or major.

Impact
The size of the position’s scope of responsibilities and the nature of the impact
Contribution level
12345
Limited
Contributions not easily identifiable
Part
Easy to identify contribution, indirect impact on success
The actions taken directly
determine the success of the outcome
Important
Contribute significantly to the success of the main result
Main
Authoritative in determining the success of the main result
1Output
Output according to established standards and guidelines
Under strict supervision and guidance, perform duties according to established procedures/standardsWork according to broad standards and have some impact within the scope of responsibilityProduce direct impact within areas of responsibility based on specific operational objectivesHas an important impact on operational goals and scope of responsibilitiesWithin the scope of responsibilities, have a major impact on the macro operational goals
12345
2Operation
Work within operational goals and service standards
Achieve goals and produce results, focusing on short-term and tactical aspectsSet daily goals that have long-term impact within the scope of responsibilityHave a direct and long-term impact on the set goals and output results within a scope of responsibilityHave an important impact on the set goals and output results within a wide operating rangeHave a major impact on the set goals and output results within a wide operating range
45678
3Tactically
Responsibilities for executing new products, processes and standards in accordance with organizational strategy or operating plans
Achieving long-term goals, focusing on tacticsWhen implementing transaction strategies, it will have some impact on the results of transaction units/departmentsWhen implementing transaction strategies, it has a direct impact on the results of the transaction unit/departmentHave a significant impact on business unit/department results when establishing and implementing business strategiesMajor impact on business unit/department results when establishing and implementing business strategies
7891011
4Strategically
Establish and implement long-term business strategies based on the organization’s vision
Design and recommend transaction strategies that have limited impact on the organizationDesign and recommend business strategies that have a partial impact on the organizationDesign and advise on business strategies that have a direct impact on the organizationWhen establishing and implementing business strategies, it has a significant impact on the results of the organization’s business unitsHave a major impact on organizational business unit results when establishing and implementing business strategies
1011121314
5Vision
Lead the organization to develop and achieve its mission, vision and values
Lead an organization to work within a collective business unit; gain support from other units or headquarters on tactical issues (e.g. price, manpower, finance, etc.) Full support/instructions forLead the organization’s work within the corporate business unit;
Receive strategic/policy direction in most aspects of the business
Lead the organization to work within the group business unit;
obtain full support or guidance from other units or headquarters
Lead the work of independent units in the team’s business;
Able to make decisions on their own, and these decisions may affect long-term strategies
Lead a diverse organization’s business community to create, communicate and implement mission, vision and value. Typical examples include Chairman of the Board of Directors
1314151617
  • Factor 1: Influence score conversion table
ImpactContribution level
12345
LimitedPartialDirectImportantMain
1Output12345
2Operation45678
3Tactically7891011
4Strategy1011121314
5Vision1314151617

 Impact (score)

Factor 2: Communication #

The communication factor evaluates the nature and framework (scope and difficulty characteristics) of communication. First, determine the essence of the communication content, and then determine the framework of the communication.

Communication
Communication includes communication within and outside the organization
Framework
1234
Internally shared interests
Within the same organization, there are common ideals for achieving goals
Externally shared interests
Outside the organization, there are common ideals for achieving goals
Internally dispersed interests
Within the organization, conflicting goals prevent the achievement of common ideals
Externally dispersed interests
Outside the organization, conflicting goals prevent the achievement of common ideals Common ideals achieved
1Convey
Transfer information through articles, suggestions, actions or appearances
Obtain or provide information within the same organizationTo Obtaining or providing information outside the organizationObtaining and providing information to others within the organization; the primary policy is to avoid conflictsObtaining or providing information outside the organization; the primary policy is to avoid conflicts
2Adapt and communicate
Achieve consensus through flexible communication and negotiation
Explain facts, practices, policies, etc. to others within the organizationExplaining the organization’s facts, practices, policies, etc. to others outside the organizationExplaining the organization’s facts, practices, policies, etc. to others within the organization; reaching consensus is limited due to practices or differing viewpointsExplaining facts, practices, policies, etc. to outside the organization that limits consensus due to convention or differing viewpoints
3Influence
Inflict changes without direct administrative instructions
In the organization, explain the interests to others and persuade others to accept new Concepts, practices and methodsPersuade outside the organization that both parties share common ideals, reach a consensus and accept new concepts, practices and methodsPersuade those who are unwilling to accept new concepts within the organization , practices and methodsConvince some external agencies that are unwilling to accept new concepts, practices and methods
4Deliberation
Manage communication through discussion and negotiation to achieve consensus
In the organization, persuade others to accept the entire proposal and projectPersuade outside the organization that both parties have common ideals, so that they can reach a consensus and accept the entire proposal and projectWithin the organization, persuade people who may not be interested in participating, so that they can accept the entire proposal and projectConvince some external agencies that were less interested in participating to accept the entire proposal and project
5Strategic Discussion
Communication skills are an important part of managing communication within a comprehensive or long-term structure
Within the organization, with Reach consensus with people who hold different views but share common goalsReach consensus with people who hold different views but share common interests outside the organizationWithin the organization, reach consensus with some interested parties Reaching consensus with people with different insights and goalsReaching consensus with some people outside the organization who have quite different insights and goals

 Communication score conversion table

CommunicationFramework
1234
Internal shared interestsExternal shared interestsInternal fractional interestsExternal fractional interests
1Communicate10253045
2Adaptation and communication25404560
3Impact40556075
4Negotiation557580100
5Strategic discussions709095115

Factor 3: Innovation #

This factor Evaluate the level of innovation and complexity required for the position. First determine the level of innovation required for the position, and then determine the complexity of its innovation.

Innovation
Creating, developing or improving new ideas, technologies, processes, services or products
Complexity
1234
Definition
Clearly point out problems and events
Difficulty
Just vaguely point out problems and events
Complex
Any three aspects (e.g. Two of the three: operations, finance, and people
1Follow
Compare with procedures and norms
Repeatedly engage in the same work or activity according to proceduresAccording to established and Familiar work activities or procedures to obtain resultsAccording to procedures, face things and problems that are difficult to manage or overcomeAccording to procedures, face things and problems that are difficult to manage or overcome
2Inspect
Make a little change
Inspect the existing system or process problemsInspect and modify the system or program, if there are But not obvious problemsFor problems and things that exist in the system or program but are not obvious, point out the problems and find solutionsFor problems that exist in the system or program but are not obvious and things, pointing out problems and discovering solutions
3Modify
Local improvements
Update and improve working methods according to established proceduresPoint out problems and update or modify work MethodsAnalyze complex matters and improve working methodsExtensive analysis of complex and multifaceted matters and improve working methods
4Improve
Improve the entire process, system or product
Adapt or improve methods and techniques based on personal experienceFeedback on issues, Adapt or improve methods and techniquesAnalyze complex things, adapt or improve methods and techniquesExtensive analysis of complex multi-faceted things, adapt or improve methods and techniques
5Create/conceptualize
Organize and bring new concepts and methods into existing systems
Create/conceptualize within a single work scope/department New methods, techniques, or processesCreate/conceptualize new methods, techniques, or proceduresAnalyze complex problems and then create/conceptualize new methods, techniques, or proceduresExtensive analysis of complex multi-faceted matters to create/conceptualize new methods, techniques or procedures
6Scientific/technological breakthrough
Revolutionary progress, especially in knowledge or technology
Within a specific product/service scope, multiple Putting concepts together to identify a new direction or a huge improvement for a product or servicePutting multiple concepts together within the scope of the work to identify a new direction or a huge improvement for a product or service Across various departments, analyze complex problems, put multiple concepts together, and determine a new direction or a huge improvement for products or servicesAcross various departments, analyze extensively A complex, multifaceted matter that puts multiple concepts together to define a new direction or a huge improvement for a product or service

 Innovation score conversion table

InnovationComplexity
1234
DefinitionDifficultyCompositeMultiple
1Follow10152025
2Prosecution25303540
3Modify40455055
4Improvements65707580
5Creation/Conceptualization9095100105
6Scientific/Technological Breakthrough115120125130

Factor 4: Knowledge #

This factor Evaluate the basic knowledge required to perform the duties of the position. Knowledge may be acquired through formal education or work experience. First determine the extent of knowledge and then determine the scope of application of the knowledge.

Width
Application of knowledge
Local
Places in the country or neighboring countries with similar cultural backgrounds
1
Region
A certain continental region (such as Asia, North America, the Middle East, etc.)
2
Global
Multiple continents
3
Knowledge
Minimum level of knowledge required to meet position requirements
Team
123
Team members
Individual contributors with no direct responsibility for leading others
Team leader
Lead team members through leadership, planning, monitoring, etc.
Team Manager
Lead more than two teams and decide the structure of the team and the roles of members
1Limited working knowledge
Technology limited to a narrow range
Working according to basic rules and standardsLeading the team by executing basic Work procedures and standards to ensure outputLead multiple teams to ensure output by implementing basic work procedures and standards
2Basic working knowledge
Basic technology
Basic knowledge of application systems and procedures for your positionLead the team Basic knowledge of application systems and proceduresLead multiple teams to apply basic knowledge of systems and procedures
3Broad job knowledge
Broad skills
Apply sufficient knowledge in one job scope, or apply basic knowledge in several related job scopes Leading multiple teams to apply sufficient knowledge within one work area, or applying basic knowledge to several related work areasLeading multiple teams to apply sufficient knowledge within one work area, or Apply basic knowledge in several relevant job areas
4Professional knowledge
Specialized skills or knowledge, the ability to master a particular subject
Apply in-depth knowledge within a scope of work, or in several Apply sufficient knowledge within relevant work scopesLead teams to apply sufficient knowledge within one work scope, or apply basic knowledge in several related work scopesLead multiple teams to apply sufficient knowledge Knowledge within one job scope, or application of basic knowledge in several related job scopes
5Professionalism
Broad expertise or knowledge
Apply broad knowledge to most or all parts of the department to fulfill responsibilitiesLead teams to apply broad knowledge in most or all areas of the departmentLead multiple teams to apply broad knowledge in most or all areas of the department
6Functional department specialists/organizational generalists
At the organizational management level, apply concentrated expertise to specific activities, areas or departments
Apply broad and deep knowledge to all work areas within the department, or apply practical experience across multiple functions to fulfill responsibilitiesLead the team to apply broad and deep knowledge to all work areas within the department, Or apply real-world experience across multiple functionsLead multiple teams to apply broad and deep knowledge to all areas of work within the department, or apply real-world experience across multiple functions
7Outstanding in functionality/
Broad practical work experience
Being sure to have the greatest ability within a position and having rich experience in organizational management
Apply broad professional knowledge and practical experience in key departments of an organization, or apply outstanding professional knowledge within a single department to perform responsibilitiesLead a team in key departments of an organization Departments, applying broad and practical experience, or applying superior expertise within a single departmentLeading multiple teams, applying broad and practical experience in major departments of multiple organizations, or working within multiple departments Apply outstanding expertise
8Broad and in-depth practical experience
Have rich and in-depth experience at the organizational management level
Have broad applications in major departments of multiple organizations and in-depth practical experience in fulfilling responsibilitiesLeading teams in major departments of a multi-agency, applying broad and in-depth practical experienceLeading multiple teams in major departments in a multi-agency , applying broad and in-depth practical experience

 Knowledge score conversion table

Conversion table of punishment points and ranks

IPE System-Job Evaluation Rating Form

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