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EXERCISE 7
JOB EVALUATION USING MARKET PRICING
This exercise will help the student to understand how market pricing works as a tool to “evaluate” jobs.
With the growth of technology companies and their emphasis on being responsive to the job market the
rapidly changing demands of that market, we’re seeing a definite growth in the number of companies
using market pricing.
Matches for the jobs are provided in Exhibits 7-1 and 7-2. Students should also use the Watson Wyatt
Report on Professional Personnel Compensation (in Exercise 11) to find an additional match for each job.
The author would suggest the following as “best fit” matches from that survey:
Olympia Title Watson Wyatt Match
Systems Analyst I
General Programmer/Analyst – Level 2
Systems Analyst II General Programmer/Analyst – Level 3
Systems Analyst III General Programmer/Analyst – Level 4
Systems Analyst IV General Programmer/Analyst – Level 5
Using an “Age to Date” of January 1, 2006, following are the appropriate market rate composites:
Olympia Title Appropriate Market Rate
Systems Analyst I
$56,245
Systems Analyst II 64,893
Systems Analyst III 77,381
Systems Analyst IV 87,159
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Sr. Database Analyst 89,681
Systems Administrator – LAN 61,751
Systems Administrator – LAN/WAN 75,959
Based on these composites, the jobs can be slotted as follows:
RANGE
Grade Min Mid Max Job Title
18
78,825
104,440
130,060
15
55,360 73,350
91,345 Bus App Prog III, Sys Analyst III, Sys Ad – LAN/WAN, Database Analyst
14
49,210
65,200
81,195 Bus App Prog II, Sys Ad – LAN, Sys Analyst II, Telecom Analyst II
