Job evaluation is primarily used to inform the setting of statutory officers’ remuneration, along with a wide range of other factors which are also taken into account.
The Authority uses other criteria and approaches to inform its determinations of remuneration for Members of Parliament, judicial officers, and local government elected members.
The Remuneration Authority uses job evaluation to inform its understanding of the context, content and responsibilities of a role and to enable it to test that its determinations on pay fairly reflect the responsibilities of the job.
Job evaluation allows the Authority to compare different roles using a consistent methodology. Evaluating a role provides a benchmark to compare how much the role is being paid compared to other similar 'sized' positions.
The Authority uses management consultancy group Korn Ferry to independently evaluate the positions for which it sets pay. The Korn Ferry Hay Guide Chart Profile Method of Job Evaluation is widely used in the public and private sectors in New Zealand and is the most widely accepted method used worldwide.
The methodology makes judgements in three major areas (known as factors):
Know-how is the combination of knowledge, skills and experience required for fully competent job performance. Know-How is considered in three dimensions:
Problem solving covers the span, complexity and level of analytical, evaluative and innovative thought required in the job - and refers to know-how to identify, delineate and resolve problems. Problem solving is considered in two dimensions:
Accountability is the scope given to the job holder to direct resources of all kinds and to influence or determine the course of events, and their answerability for the consequences of their decisions and actions on the organisation. Accountability is also considered in three dimensions:
A Korn Ferry senior consultant who is experienced in evaluating senior executive roles in both the public and private sectors is engaged by the Authority to 'size' its roles.
To build up their understanding of the context, content and responsibilities of a role, the consultant will draw on:
After the consultant has assessed the skills, complexities and accountabilities of the role a report with a recommendation is prepared for the Authority’s consideration.