Job evaluation : understanding the grading and remuneration strategies of architectural firms in Cape Town.
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Date
2006
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Abstract
Job Evaluation is the process of determining, as systematically and
objectively as possible, the worth of one job relative to another without
regard for personalities or existing structures. (Paterson, 1975) The
purpose is to achieve and maintain an equitable distribution of basic
wages and/or salaries according to level of position.
The establishment of internal equity with a graded hierarchy of jobs
within the organisation and of external equity with the external market
rate for equivalent jobs (Paterson, 1975) is important and has lead to the
overall analysis of the following problem statement:
An Analysis of the Grading and Remuneration Structures of
Architectural Practices in the Western Cape, Cape Town Metropole
with specific reference to establishing what methods are used in
arriving at cost to company packages.
The nature of the architectural profession is unfortunately governed by
economic "boom and bust" cycles and therefore workload fluctuates with the economy. Given this and that the architectural profession in Cape
Town currently has no formal grading and remuneration structures, the
research hopes to answer if there is a need to formulate a grading system.
Understanding how and why the nature of the profession is changing, if
the way a practice is organized / graded enhances or undermines its
decision-making ability and if the informality of the grading and
remuneration structures currently in practice are adequate, is studied.
This research investigates how architectural practices in Cape Town
establish their salary structures, which include benefits and incentives,
thereby arriving at a total cost to company package. Specifically, the
study will examine whether there is a direct relationship between those
practices that have adopted a modern, scientific job grading system, i.e.
Paterson, Peromnes or Task and accordingly pay market-related salaries
and cost to company packages based on salary survey data or some other
scientific calculation, as opposed to those practices which adopt an ad
hoc approach.
Many individuals choose architecture over other professions as they
believe it can provide a work and family balance. The Royal Institute of
Architects (RIBA) found that women's career paths generally slow after
childbirth and with inflexible working arrangements, including long
hours and a lack of transparency in relation to pay and promotion, are the
main reasons why both women and men, generally with dependants are
leaving the profession, (www.riba.org)
A need to balance the personal and professional demands placed on
architects has long been recognized by the majority of literature. The
study evaluates whether firms are addressing these issues or if there is a need to implement changes to accommodate a better work / life balance
and grading / remuneration imbalances.
The survey found that there were discrepancies in the grading and
remuneration packages offered between various firms; however not to the
extent that RIBA had warned was occuring internationally. There are
more noticeable differences in job grades and remuneration in the higher
grades, but there were also signs of disparity in the architects 1-5 years of
experience in terms of gender towards pay within similar job
descriptions. When pay was directly compared to years of experience,
members received similar pay, however when compared to levels of
responsibility and pay, there were major differences.
The current informal systems are not reflective or accurate in guiding
employers on the correct levels of compensation for a particular level of
responsibility and those architects practicing in the higher grades
certainly need to evaluate their current levels of responsibility to their pay
level and hours worked.
The key question was, can architects- be they male or female - balance a
working career with family responsibility. The days of a part-time
architect have vanished, and those that do work part time are confined to
helping on other member's schemes with less responsibility.
The 'all-nighter' syndrome of the academic design studio is evident in
some of the overtime hours recorded, but these marathon hours are few
and far between and does not infringe on a regular home life for
employees in the lower grades as the hours worked are in line with the
normal 45 hour week. What is a concern is that in the upper grades,
especially in senior member and owners, reported excessively long hours which are not condusive to normal work-family interaction. Other than
some of the contraventions to the basic conditions of employment act,
most firms are trying to address options for a balanced work / life
relationship
Salaries in particular are extremely low in relation to length of training
when compared to similar professions. The research found that poor
advancement prospects were a significant factor in members choosing to
leave the profession. With lack of training opportunities leading to a lack
of experience, lower levels of responsibility and poor career progression
paths, combined with limited opportunities for creativity, were the main
factors leading to architects expressing their dissatisfaction in the
industry.
From the salient points made in the study, a list of recommendations are
outlined for consideration. These included developing more expertise in
business management, addressing the image of the profession, training
needs, salaries and working hours
Architectural firms are seeing the demise of the old arena, dominated by
tiered hierarchies, vertical career ladders, practices and processes that are
confrontational and authoritarian. Workplaces are becoming more suited
to negotiation, to collaborative management systems, horizontal career
paths and a more democratic view of how individuals can develop within
the company structure.
'It is no longer about what you can do for the company, but what the
company can do for you.'
Description
Thesis (MBA)-University of KwaZulu-Natal, 2006.
Keywords
Job evaluation., Architects--Salaries, etc.--South Africa., Theses--Business administration.