Mercer International Position Evaluation TM System (IPE) v3.1. Training Session For APCBF Members MERCER PDF

Mercer International Position Evaluation TM
System (IPE) v3.1
Training Session for APCBF Members
MERCER
Agenda
Survey Process & Methodology
Job Matching: Mercer Universal Position Code System (MUPCS)
International Position Evaluation™ System (IPE) v3.1
MERCER 1
Survey Process &
Methodology
MERCER
Mercer Survey Process Overview - 4 main steps for participants
Step 1 Step 2 Step 3 Step 4

Job Matching Position Evaluation Data Input & Submission Data Processing
Submit Data checking

Job Matching Position Evaluation
data collection kit & processing
Delivery of Survey
Result
Access the
survey result
Mercer
WIN
MERCER 3
Mercer Survey Process (Step 1)
Job Matching
• Should start matching top down
• Do not use only job titles to match to Mercer positions but to job content
– Titles can have varying meanings
– Titles do not accurately describe job content. For example: A Finance Manager covering
all finance related functions vs a Finance Manager covering only accounting and payroll
– Benchmark position descriptions and specifications provided
– Identify each position in the organization with benchmark positions available for you to
match
MERCER 4
Job Matching: Mercer Universal
Position Code System (MUPCS)
– An Overview
MERCER
Mercer Universal Position Coding System (MUPCS)
Coding Structure
Components
1) Job family
2) Sub family
3) Career stream – broad job ranking
4) Career level – possible progression steps within stream
5) Job activity – differentiates specialties or role variations
Example:
Marketing Manager = 410.100.220
MERCER 6
MUPCS
Example – Marketing Manager
Career Stream
1 – Executive Career Level
2 – Management
(dependent upon career stream)
3 – Individual Professional
1 – Senior Manager
4 - Para-Professional
2 – Manager
3 – Team Leader (professionals)
4 – Team Leader (para-prof)
410 100 2 2 0
Activity
Sub-Family (if necessary to
Family 410 - Marketing differentiate)
100 - Top Management 100 – General 0
110 - Corporate Affairs 444 – Advertising & Promotion 1
120 - HR 460 – Market Research 2
130 - Knowledge Management 464 – Marketing Analysis 3
200 - Finance & Admin. 468 – Marketing Services etc.
410 - Marketing etc.
etc.
MERCER 7
Job Matching Guide
• Read the job descriptions and select the position that best matches the role in your
organisation based on the actual job responsibilities.
Extract
MERCER 8
Mercer Universal Position Coding System (MUPCS)
MUPCS Career Streams and Levels
Career Streams
MUPCS Career Streams
1. Executive 2. Management 3. Individual Professional 4. Para-Professional
1. Head of Organization
2. Function Head
3. Sub-Function Head
MUPCS Levels
1. Senior Manager
1. Pre-eminent
2. Expert
2. Manager
3. Specialist
4. Senior
3. Team Leader (Professional)
0. Specialist
5. Experienced
4. Team Leader (Para-Professional)
6. Entry 1. Senior
2. Experienced
3. Entry
MERCER 9
Definition of Tier Levels
Only Applicable for Executive Positions
Sub
SubFamily_label SubFamily_description
Family
000 Group Management A free standing autonomous organization. The parent corporation of business
(Tier 0 or Top tier) group’s or the headquarters organisation with a controlling stake in a number of
companies, which conduct business separately. The head of such organisations
reports to the financial board at the ultimate top of the structure.
010 Subsidiary/Division/Global Line of A division/subsidiary/global line of business running independently of other

Business business divisions. The subsidiary management reports to senior management
(Tier 1) at the headquarters of the parent corporation. The parent organization has a
majority share ownership of the Subsidiary
020 Territory Management - Region/Zone The regional business or market zone representing multiple global business
(Tier 2) divisions. The regional management reports to senior management at the
headquarters of the parent corporation. The parent organization has a majority
share ownership of the regional company.
030 Country/Local Operational Company Subsidiary operations or market activities on behalf of global business divisions
(Tier 3) or regional headquarters. The senior management reports to senior
management in the parent organization at tier 1 or tier 2 level. Some might
report to senior management in a parent organization at tier 3 level.
MERCER 10
Illustration Using Typical Actual Titles Encountered
Chairman of the Board

Group Financial Board Chairman & CEO
Group Management
Tier 0 Corporation / Holding Chief Executive Officer (CEO)
Corporate Headquarters
Head of Corporation (Group)
Stand Alone Organization
CEO (Non Chairman)
Tier 1 Company Management Business Area Management Chief Executive / President

Subsidiary / Division Global Line of Business Division Head / LOB Head
Legally independent. / Division Chief Operating Officer (COO)
Own board of directors “Group” within the Firm
Head of Region
Tier 2 Territory Management
Head of Sub-Region
Region / Zone
Sub-Region / Cluster Zone Head
Managing Director
Tier 3 Local Business Unit / Local Subsidiary / General Manager
Country Operational Company Country Manager
Business Unit Manager
MERCER 11
Executive Jobs Tier Levels – More examples
World HQ
Parent Company TIER ZERO
(0)
Affiliate/Subsidiary Affiliate/Subsidiary TIER ONE

Division Division
(1)
Region Region Region TIER TWO (2)
Country
TIER THREE
(3)
Country
MERCER 12
Job Matching
Outcome of Job Match Process
Managing Director 100.030.110 – General Manager/Country Manager

(MD) Tier 3
420.030.120 –
Head of Finance Head of Sales Head of Sales
210.100.130 – Head of Finance
(Tier 3)
Sales Rep Sales Rep
Finance Manager 420.100.350 Sales Representative

210.100.220 - Finance
Manager
MERCER 13
Job Evaluation
• Position Sizing
– IPE system will generate standard evaluation based on point system (Position Class)
– Clients to review and fine tune the evaluations if necessary
MERCER 14
Data Collection and Submission
• Collect data for all incumbents of Benchmark positions
• Compensation Values
– Base Salary
– Total Guaranteed Cash Compensation
– Total Cash Compensation
– Total Direct Compensation
– Total Remuneration
MERCER 15
International Position
Evaluation™
System (IPE) v3.1 Overview
MERCER
What is IPE?
• The Mercer IPE™ is a system designed to objectively determine the

relative ranking of positions.
• By doing so, the result of an evaluation using the IPE System can provide:
– A reliable basis for Pay for Position

– A framework for promotion and succession planning
– An objective reference to solve titling issues
– A tool to compare the relative efficiency of different units
– A means for external comparisons
– An objective reference for the evaluation of a person vs. his/her position
MERCER 17
Methodology Overview
Position Evaluation Overview
Position evaluation is: Position evaluation is not:

A method of establishing the internal A process that measures the
relative value of different jobs within performance of individuals
an organisation across functions, A prescription for individual salary
divisions, and locations levels
A consistent and credible framework A scientific process involving no
for determining job hierarchy and judgment
grade structure
A system that can be linked to
market compensation data and
facilitates internally equitable and
externally competitive compensation
management
MERCER 18
International Position Evaluation System (IPE) - Factors
Organisation size is determined by monetary scale such

Organization
as sales and assets, and number of employees.
Impact Impact Assess impact level a position has on organisation.
Assess relative contribution that a position holder makes

Contribution
in the context of Impact.
Assess the nature of the necessary communication ability
Communication
required by a position.
Communication
Determine both organisation frame and nature of interests
Frame
Position of communication contacts.
Class Assess the requirements to identify, make improvements
Innovation
to, or develop procedures, services or products
Innovation
Complexity Assess level of complexity that a position holder must
deal with.
Knowledge Measure the nature of knowledge required in the job to

accomplish objectives and create value.
Knowledge Team Team dimension.
Assess the breadth (geographic context) in which the

Breadth
knowledge is to be applied.
MERCER 19
IPE Methodology Overview
Factors weighting
705 Factor Weight
Impact 57%
Communication 9%
Innovation 10%
260
Knowledge 21%
Risk 3%
130
115
35
5 10 10 10 0
Communication Innovation Knowledge Risk
Impact
Organisation Complexity Teams Environment

Contribution Breadth
Frame
MERCER 21
IPE Methodology Overview
Position Class
Total Point Range Position Class Total Point Range Position Class Total Point Range Position Class
26 - 50 40 426 - 450 56 826 - 850 72
51 - 75 41 451 - 475 57 851 - 875 73
76 - 100 42 476 - 500 58 876 - 900 74
101 - 125 43 501 - 525 59 901 - 925 75
126 - 150 44 526 - 550 60 926 - 950 76
151 - 175 45 551 - 575 61 951 - 975 77
176 - 200 46 576 - 600 62 976 - 1000 78
201 - 225 47 601 - 625 63 1001 - 1025 79
226 - 250 48 626 - 650 64 1026 - 1050 80
251 - 275 49 651 - 675 65 1051 - 1075 81
276 - 300 50 676 - 700 66 1076 - 1100 82
301 - 325 51 701 - 725 67 1101 - 1125 83
326 - 350 52 726 - 750 68 1126 - 1150 84
351 - 375 53 751 - 775 69 1151 - 1175 85
375 - 400 54 776 - 800 70 1176 - 1200 86
401 - 425 55 801 - 825 71 1201 - 1225 87
Genera l Sta ff
Profes s iona l
Ma na gement
Top Ma na gement
MERCER 22
Impact Factor
MERCER
Impact Factor
Overview
To determine the degree for this factor:
– Determine the size of the organisation by:
- Determining the nature of the organisation and its number of employees
- Calculating adjusted revenue
– Determine the nature of impact by:
- Identifying the area of the organisation impacted by the position holder
- Determining the type of impact the position holder has on the organisation
– Determine the contribution level by:

Impact
- Considering the level of autonomy of a position holder
- Determining a position holder’s relative contribution to

business strategy and vision Organisation Contribution
MERCER 24
Impact Factor
Organisation
Impact
Contribution
MERCER 25
Impact Factor
Organisation Dimension
Steps to determining an organisation’s size:
Step 1: Identify organisations.
Step 2: Determine the nature of an organisation

and calculate the multiplier.
Step 3: Calculate the adjusted revenue.
Step 4: Determine the degree using adjusted

revenue and number of employees.
Step 5: Size the organisation.

MERCER
26
Sizing an Organisation
Step 1: Identify Organisations
Subdivide the company into smaller organisations that

meet the IPE organisation criteria. An organisation must
have:
Its own economy (Sales turnover, Costs, Assets)
At least one primary function (Production,
Marketing & Sales, R&D)
At least two supporting functions (Economy and
Personnel)
MERCER 27
Step 2: Determine Nature of Organisation and Calculate Multiplier
in eIPE System
From Economic volume (Net Sales Turnover, Assets) To final
origin Number of employees (Capital or People intensive) consumer
Tangible products - Products organisation
Product Development Production Sales and Service
MERCER
Step 2: Determine Nature of Organisation and Calculate Multiplier
in eIPE System
Intangible products - Services organisation
Creation Application Sales and Service
MERCER
What major steps in the products organization generates added-value
Primary research. Typically includes basic research and development activities where the
Basic Research & eventual product and/or market potential is unknown. Generally characterized by a relatively 4.0
Product Development
1
Development modest rate of success (e.g., 20% of research eventually results in new products).
Product development. Includes targeted R&D activities to develop a specific new product or
Applied Research & enhancement of an existing product where the eventual market potential is more defined.
2 Typically includes development of preliminary product specifications and pre-production 2.0
Development
prototypes. Go-to-market decisions are generally made at this stage of development.
Production design. Final engineering of production-ready specifications and manufacturing

3 Engineering processes. 1.5
Supply. Specific function responsible for obtaining manufacturing inputs, including raw materials
and intermediate manufactured products. Generally responsible for all contract negotiation,
4
Procurement / Inbound vendor management and spot market transactions. Supply management. Management of 2.0
Logistic inbound materials, including delivery scheduling, transportation, warehousing and inventory
management.
Production
Basic manufacturing. Production of intermediate or final goods from raw materials. May include
intermediate manufactured products as part of the production process. Characterised by the
5 Production 2.0
conversion of materials to a new product with different characteristics (e.g., molding of plastic
into auto parts).
Assembly of previously manufactured goods for market. Includes final assembly and packaging
6 Application/Assembly of two or more manufactured products (e.g., assembly of auto parts into a complete automobile). 2.5
May include limited intermediate finishing of inputs.
Independent of sales. Function responsible for internal market analysis and planning and
7 Marketing 1.0
Sales and Service
external communications, such as public relations, advertising and marketing collateral.

Excluding marketing. Includes management of direct and indirect sales forces. Does not
8 Sales 1.5
include oversight of third-party distributors.
Outbound logistics. Includes warehousing and outbound transportation of goods to third-party
9 Distribution 1.5
distributors and/or final customers.
After-sale service. Includes customer call centres and repair, service and support. Service may
10 Service 2.0
be offered on warranty, contract or fee-for-service basis.
MERCER 30
What major steps in the services organization generates added-value
Intellectual capital and/or technology development. Typically includes basic research and
Product Development
1 Idea & Concept Origination development activities where the eventual service and/or market potential for that service 3.0
is unknown.
Service definition. Includes the development of the service that will be offered and the
2 Generate Application specifics around that service, such as tools and processes for service delivery. May also 2.0
include the development of new markets for existing service lines.
Operations
Delivery of solutions-based services. Generally includes idea-based services such as

3 Apply Solutions 2.5
consulting and creative development where the customer is paying for ideas.
Independent of sales. Function responsible for internal market analysis and planning and
4 Marketing 1.5
external communications, such as public relations, advertising and marketing collateral.
Sales and Service
5 Sales Excluding marketing. Includes management of direct and indirect sales forces. 3.0
Physical delivery of service. Distribution of services to customers through personal

contact. Includes remote contact via telephone, internet, etc. May include physical
6 Distribution 1.5
delivery of idea-based or non-idea based services. "Apply Solutions" and "Distribution"
always occur concurrently (but "Distribution" may occur without "Apply Solutions").
7 Customer Service Support. Includes customer call centers and post-service support. 1.5
MERCER 31
Step 2: Value chain weighting in eIPE System

Tangible products - Products organisation

Product Development Production Sales and Service
4 2 1.5 2 2 2.5 1 1.5 1.5 2

Sum = 20
MERCER
Step 3: Calculate the adjusted revenue
Basic Procure Apply Distri-

Applied R&D Engineer Produce Market Sales Service
R&D Logistics Assemble bution
4.0 2.0 1.5 2.0 2.0 2.5 1.0 1.5 1.5 2.0
¨ ¨ ¨ ¨ ¨ ¨
Example: Sales & Technical Service Organisation with 150 head count
Sales Volume: US$ 40 million
Multiplier: 6
Adjusted Revenue: US$ 240 million Economic
Size
Reference to the Economic Size Table, Table
=> Degree level for Size : 4
MERCER 33
Step 4: Determine degrees using adjusted revenue and no. of
employees with the organisation size table
Step 4b –
Determine
Step 4a – degree
Determine for # of
degree for employees
economic
size
MERCER 34
Calculated Degree Level
Example: Sales & Technical Service Organisation (150 employees)
Economic Size Degree Level: 4

No. of Employees Degree Level: 5
Calculated Average: 4.5
Degree Level for Size of Organization: 4
MERCER 35
Impact Factor
Organisation
Impact
Contribution
MERCER
Impact factor
Nature of Impact and Contribution Matrix in eIPE system - Example
Level of Contribution
1 2 3 4 5
NATURE OF
Limited Some Direct Significant Major
IMPACT
1 Delivery Marked contribution to defining the

direction for new products, processes,
standards or operational plans based upon
business strategy, with a significant mid-
term impact on business unit overall
2 Operational
results.
3 Tactical
4 Strategic
5 Visionary
MERCER 37
Impact factor: Impact dimension
Impact levels
Nature of
Area of Impact Type of Impact Impact
Within specific
Job area standards and 1. Delivery
guidelines
Within operational
Job Area(s) targets or service 2. Operational
standard
New products/
Business
processes based on 3. Tactical
Unit/Function organisation strategy
Longer-term plans
Organisation level based on 4. Strategic
organisation vision
Vision, mission &

Corporate level 5. Visionary
values
MERCER 38
Impact dimension
Cascade from Group to Division and down to Business Unit level
Group Level
Visionary
Division
Level
Strategic
Business
Unit
Tactical
MERCER 39
Impact Factor
Organisation
Impact
Contribution
MERCER
Impact factor: Contribution dimension
The spectrum of contribution levels
Hard to Easily discernible Directly and Quite marked Predominant

identify/discern or measurable clearly influences contribution with authority in
contribution to contribution that the course of authority of a determining the
achievement of usually leads action that frontline or primary achievement of key
results indirectly to determines the nature results
achievement of achievement of
results results
Propose Decide
Contribution must be assessed in the context of the impact level determined
Delivery Consider the level of autonomy within job area (e.g., Accounts Payable)
Operational Consider the level of autonomy within job or operational area (e.g., Accounting)
Tactical Consider the relative contribution to short- and mid-term functional or operational plans (e.g., Finance)
Strategic Consider the relative contribution to long-term business strategy
Visionary Consider the relative contribution to establishing an organisation’s vision
MERCER 41
Impact degree 5: Visionary
Contribution to organisation's vision
Impact degree 5 - Visionary Contribution

Head of Head of Head of Head of Major Chairman & CEO

Dependent Subsidiary Dependent Global Business
Subsidiary Business Unit
CEO
Subsidiaries / Operational Free Standing

Global Line of Business
Companies Organisations
MERCER 42
Impact degree 4: Strategic
Contribution to organisation’s business strategy

Hard to Easily Directly and Quite marked Predominant
identify/discern discernible or clearly contribution with authority in
contribution to measurable influences the authority of a determining the
achievement of contribution that course of action frontline or achievement of
results usually leads that determines primary nature key results
indirectly to the
achievement of achievement of
results results
Overall Business Results
< 10%
10 - 15%
15 - 20% 20 - 30% > 30%
When evaluating Impact degree 3, “Tactical”, and 4, “Strategic”, establish the direct accountability for
qualitative and quantitative contribution to the organization’s overall result (100%).
MERCER 43
Communication Factor
MERCER
Communication factor
Overview
To determine the degree for this factor:
– Determine the nature of communication by:
- Defining the most difficult and challenging communication that the job holder encounters
- Determining how frequently the most difficult and challenging communication occurs
– Determine the frame of the communication by:
- Determining the communication audience
- Determining the audience context Communication
Frame
MERCER 46
Communication
Frame
MERCER
Communication factor: Communication dimension
Communication levels
Nature of Desired Level of

Communication Outcome Communication
Statements, Understanding of
1. Convey
suggestions information
Reach agreement Comprehension of 2. Adapt and

through flexibility facts/policies Exchange
Acceptance of a
Affect change
concept, practice or 3. Influence
without commands
approach
Acceptance through
Strategic shorter-
discussion and 4. Negotiate
term communication
compromise
Important long-term Acceptance of 5. Negotiate Long

communication strategic agreement Term
MERCER 48
Communication factor: Communication dimension
Frequency of communication
Level of
Frequency
Communication
1. Frequent
1. Convey
1.5 Continuous
Continuous
1.5 Occasional Daily
2. Adapt and Frequent
2. Frequent Regular but
Exchange
2.5 Continuous Occasional not daily
Few times a
2.5 Occasional month
3. Influence 3. Frequent
3.5 Continuous
3.5 Occasional
4. Negotiate 4. Frequent
4.5 Continuous
5. Negotiate Long 4.5 Occasional

Term 5. Frequent
MERCER 49
Communication
Frame
MERCER
Communication factor: Frame dimension
Internal vs. external audience
President and Chief

Executive Officer
Chief Human Chief Financial

Resources Officer Officer
Corporate Chief Information

Secretary Officer
Regional Director Regional Director Regional Director Regional Director

Asia / Pacific Europe Latin America North America
Managing Director Managing Director Managing Director Managing Director Managing Director
Germany France Italy Great Britain Scandinavia
Director Director Director

Director Finance Sales & Marketing Human Resources Director Logistics
Manufacturing
Internal
External
MERCER 51
Nature of interests
Shared Divergent
Common goals Conflicting objectives
Aligned interests Contradicting interests
Mutual desire Differing points of view
Willingly compromise Reluctantly compromise
Discuss Debate
Win-Win Risk of Win-Lose
MERCER 52
Organisational frame
Frame
1 2 3 4
Internal External Internal External
Shared Shared Divergent Divergent
Interests Interests Interests

Interests
Interests Interests
Interests Interests
MERCER 53
Innovation Factor
MERCER
Innovation factor
Overview
Innovation relates to the requirements of the position to identify and make improvements to
procedures, services, or products.
Innovation also relates to the requirements to develop new ideas, methods, techniques,
services and products.
To determine the appropriate degree for this factor:
– Identify the level of innovation required of the position.
– Identify the level of complexity of the innovation.

Innovation
Complexity
MERCER 56
Innovation Factor
Innovation
Complexity
MERCER
Innovation factor: Innovation dimension
Overview
Innovation falls into one of three broad categories:
Constrained by • Follow
existing
policies • Check
Focused on • Modify
improvements • Improve
Create new • Create

processes and
products • Breakthrough
MERCER 58
Which Degree of Innovation?
INNOVATION
- Limited changes expected from the position holder
Follow Limitedeg. Accounts
changes Clerk from the position holder, eg. Accounts Clerk.
expected
- Make
Make minor
minor changes
changes withwith
helphelp of existing
of existing procedures,
procedures, processes
processes, eg. HR Officer,
Check Accountant responsible for reconciliation, Quality control responsible for control
eg. HR Officer, Accountant responsible for reconciliation, Quality responsible
checking products for
checking products for
for defects on assembly line. defects on assembly line.
- Resolve
Resolve issues
issues / problems
/ problems by modifying
by modifying / enhancing
/ enhancing existing
existing working
working method
method, eg.
Modify eg. Accounting
Accounting Mgr responsible
Manager responsible for changing
for changing accounting
accounting procedures
procedures in order
in order to reduce errors.
to reduce
errors.
Change/prevent
- Change/prevent issues/ problems
issues/ by significantly
problems improve
by significantly entire
improve process
entire systems
process systemsor or products
Improve products
eg.eg. General
General Manager
Manager responsible
responsible forfor changing
changing thethe organization
organization to to reflect
reflect newnewenvironment
environment conditions
conditions and corporate
and corporate goals.goals.
Create / - Create
Create newnew methods,
methods, techniques
techniques or products
or products, eg. Position devising new financial strategies
Conceptualize to gain eg. Position
access devisingsources
to untapped new financial strategies to gain access to uptapped sources of fund
of fund.
Scientific/Technical - Develop
Develop newnew
andand unprecedented
unprecedented scientific
scientific or technical
or technical ideas
ideas, eg. High level research in
R&D. eg. High level research in R&D
Breakthrough
MERCER 59
Innovation Factor
Innovation
Complexity
MERCER
Innovation factor: Complexity dimension
Levels of complexity
Complexity
Defined Difficult Complex Multi-dimensional
In either In either In any two of three In all three
Operational, Operational, dimensions i.e., dimensions -
Financial or Human Financial or Human Operational, Operational,
area - Easily area - Not easily Financial and Financial and
understood understood Human area Human
Involved directly in all
three dimensions
MERCER 62
Knowledge Factor
MERCER
Knowledge factor
Overview
The degree for this factor depends upon:

– Depth of knowledge required to accomplish objectives
– The way knowledge is applied individually and within teams
– The breadth in which the knowledge is to be applied.
Knowledge
Teams Breadth
MERCER 65
Knowledge Factor
Knowledge
Teams
Breadth
MERCER
Knowledge factor: Knowledge dimension
Levels of knowledge
8 In-depth management knowledge in most functions

across several businesses of the corporation
7 Industry expert in In-depth management knowledge across several

the profession line and support functions or businesses
6 organisation expert in the Broad management knowledge across

profession several functional areas or businesses
Mastery of specific professional Broad knowledge of several,
5 discipline at expert level different areas across functions
Advanced knowledge of specific

4 discipline within one’s own job area
3 Broader theoretical or advanced

technical/operational know-how
2 Specialised commercial,
technical or operational know-how
1 Fundamental know-how
Specialist within narrow boundaries Generalist
MERCER 67
Which degree of Knowledge ?
KNOWLEDGE Education + Learning Experience
Limited Mandatory schooling No previous experience

Job Knowledge (e.g. Data Entry Operator)
Basic Higher Secondary Up to 6 months experience

Job Knowledge or Vocational education
(e.g. Accounts Clerk, Technician)
Broad Job Knowledge Specialized School 6 months up to 2 years experience

(e.g. Project Coordinator, Process Engineer )
Expertise University Degree 2 years up to 5 years experience

(e.g. Senior Accountant )
Professional University Degree 5 years up to 8 years experience

Standard (e.g. Finance Head, Head of Sales)
Organizational Generalist / University Degree 8 years up to 12 years experience

Functional Specialist (e.g. Corporate Finance Head, Corporate HR
Head)
Broad Practical Experience / University Degree 12 years up to 16 years experience

Functional Pre-eminence (e.g. Appointed Actuary, Head of Business Unit,
Head of large-size organization within a
corporation)
Broad and Deep University Degree More than 16 years experience

Practical Experience (e.g. Head of a large complex corporation or unit
with complex functions )
MERCER 68
Knowledge Factor
Knowledge
Teams
Breadth
MERCER
Knowledge factor: Teams dimension
Team positions
Team positions
Team member Team leader Teams manager
and and
MERCER 70
Team (Degree)
Typical Examples
• Team 1: Team Member

The position holder is an individual contributor and is directly responsible for performing activities or
discharging responsibilities
• Team 1.5:
Use team 1.5, if the position holder coordinates project activities or had functional management (dotted line
management)
• Team 2: Team Leader
The position holder leads a team that is responsible for delivering outputs & results. For a group to be
designated as a team, it should include at least 3 members (excluding assistant or secretary)
To be considered managing the team members, the team leader should lead, schedule, allocate & monitor
work (including performance appraisal)
• Team 2.5:
The position holder is responsible for a team with its own leader and has another team reporting directly
• Team 3: Team Manager
A Team Manager direct multiple teams, each of which has a team leader
A Team Manager determines team structure and roles of members
MERCER 71
Knowledge Factor
Knowledge
Teams
Breadth
MERCER
Knowledge factor: Breadth dimension
Breadth degrees
Domestic
Regional
Global Regional
Africa
MERCER 74
Knowledge factor: Breadth dimension
Location examples
Global
Multiple
Breadth Domestic Sub-Region Regional All major
Regions
time zones
Degree 1 1.5 2 2.5 3
Application of
Locations within a
knowledge
country or
Multiple countries Minimum two All regions of the
neighbouring Continental region
Manage and/or with diverse cultures Continental regions world
countries with similar
apply results
culture
locally
ASEAN, BENELUX, Europe, Asia,

Americas and EMEA
Territory USA, China Nordics, Central Oceania, Africa, EMEA
and Asia/Pacific
America Latin America
MERCER 75
Position Class
MERCER
Position class
Sample role: Regional sales manager
Degree Points
Size 12
Impact Impact 3 179
Contribution 2
Communication 3.5
Communication 88
Frame 4
Innovation 3
Innovation 45
Complexity 2
Knowledge 4
Knowledge Teams 2 130
Breadth 1.5
Total Points 442
Position Class ?
MERCER 77
Position class
Sample role: Regional sales manager (continued)
MERCER 78
Position class
Sample role: Regional sales manager
Degree Points
Size 12
Impact Impact 3 179
Contribution 2
Communication 3.5
Communication 88
Frame 4
Innovation 3
Innovation 45
Complexity 2
Knowledge 4
Knowledge Teams 2 130
Breadth 1.5
Total Points 442
Position Class 56
MERCER 79
Appendix
MERCER
Career Stream Description - Management
Management Career Stream

Management Stream is the role focused on managing people and implementing policies and
strategies to meet the organization’s objectives.
1. Senior Manager
Manages within a nominated sub-function or related sub-functions; typically a highly
experienced manager. Decisions tend to be more tactical and operational; geographic scope
of operation tends to be at the country level. Typically accountable for budget and policy
recommendations and medium term planning.
2. Manager
Managing teams with focus on policy and strategy implementation and control rather than
development; short-term operational/tactical responsibilities.
* Note that not all Career Levels are available in the MUPCS framework.
MERCER 81
Career Stream Description - Management
Management Career Stream

3. Team Leader (supervise Professionals)
Leads/supervises a team of 2 or more professionals; first level manager of a work team that
could comprise professionals, technical and/or administrative staff. Typically without budget
or hire/fire authority. Focuses on mentoring, coaching, and coordination.
4. Team Leader (supervise Para-Professionals)
Leads/supervises a team of 2 or more Para-professionals; first level manager of a work team
that comprises Para- professionals. Typically without budget or hire/fire authority. Focuses on
mentoring, coaching, and coordination.
.
MERCER 82
Career Stream Description - Professional
Professional Career Stream

Professional Stream is the role intended for individual contributors without a specific
supervisory responsibility, although it may allow for coaching / mentoring less experienced
staff. These roles require a degree or equivalent.
1. Pre-Eminent
Individual contributor; superior in excellence; internationally recognized leader and
contributor in field of expertise, speaks at national and international forums, contributes to the
body of knowledge within area of expertise.
2. Expert
Individual contributor and acknowledged expert both within the organization as well as within
other organizations. Typically participates in industry/knowledge reference groups. Involves
mastery of a specialized discipline and thorough understanding of a number of disciplines.
May also require development of new solutions for complex projects.
MERCER 83
Career Stream Description - Professional
Professional Career Stream
3. Specialist
Individual contributor with comprehensive knowledge in specific area. Ability to execute
highly complex or specialized projects; adapts precedent and may make significant
departures from traditional approaches to develop solutions.
4. Senior
Individual contributor that is fully proficient in applying established standards; knowledge
based acquired from several years of experience in particular area. Works independently;
may instruct or coach other professionals.
5. Experienced
Individual contributor that works under limited supervision. Applies subject matter knowledge;
requires capacity to understand specific needs or requirements to apply skills/knowledge.
6. Entry
Individual contributor representing the most common entry point for this career stream; works
under direct supervision.
MERCER 84
Career Stream Description – Para-Professional
Para-Professional Career Stream

Para-Professional Stream is a skilled, semi-skilled or unskilled role without supervisory
responsibility. Roles in this stream do not require a university degree. They may require
some formal professional training and/or certification.
1. Senior
Individual contributor that is fully proficient in applying established standards; knowledge
based acquired from several years of experience in particular area. Works independently;
may instruct or coach other professionals.
2. Experienced
Individual contributor that works under limited supervision. Applies subject matter knowledge;
requires capacity to understand specific needs or requirements to apply skills/knowledge.
3. Entry
Individual contributor representing the most common entry point for this career stream; works
under direct supervision.
MERCER 85
Questions?
MERCER
TM
e-IPE
Online Position Evaluation
System Demo
What is e-IPE?
• e-IPE is a web application that puts the power of the Mercer International Position
Evaluation System in your hands
• It allows you to choose benchmark positions for survey participation, and modify the position
evaluations to reflect the position in your organization
• Review and update your company details online
• No third-party software to load onto your corporate computer
• Enhancements are immediately available to you
• Password protected to ensure confidentiality
MERCER 88
How do I use e-IPE?
• Login to the internet: http://eipe.imercer.com
• Login to the site using your username and password (supplied to you by your Mercer
representative)
• Download the user guide, list of benchmark positions, and IPE manual, and familiarize
yourself with them
• Review and update your company details
• Add and evaluate benchmark positions
• Link benchmark positions to your company’s Actual Title for the position
• Review using the Reporting functions
• You are ready to submit your data for the survey!
MERCER 89
How To Use e-IPE ?
Login to the site & Change Password
• Login to the internet:

http://eipe.imercer.com/
• Login to the site using
your username and
password (supplied to
you by your Mercer
representative)
• Download the user guide
and IPE manual, and
familiarize yourself with
them
• From the Main Menu,
Survey users navigate to
the Home Module and
change your password
MERCER 90
How To Use e-IPE ?
Organization Module - Update Company Size
From the Main Menu,

Survey users navigate
to the Organization
Module to
• Review and update
your company details
size of your company
contact information
MERCER 91
How To Use e-IPE ?
Organization Module - Update Company Size
From the Main Menu,

Survey users navigate
to the Organization
Module to
your company details
size of your company
contact information
MERCER 92
How To Use e-IPE ?
Position Module - Match to Survey Benchmarks
From the Main Menu,

Survey users navigate to
the Position Module to
• Click on the “Job Match”
button to add Survey
Mercer Benchmarks for the
Job Matching
• In the “Position Match”
screen, select Organization
and search Benchmark
Position that you want to
add and click the “Go”
button
• Tick your Benchmarks by
using checkboxes and click
the “Create” button. After
that “Position Evaluation
List” screen will go back.
MERCER 93
How To Use e-IPE ?
Position Module – Modify the Standard Position Evaluations
To review and modify

Position Evaluation to
better reflect the role:
• Select Positions and
press “Grid Edit”
button.
• Add “Actual title”
• Modify the standard
position evaluations to
reflect the actual
evaluations of the
position in your
organization through
IPE factors
MERCER 94
How To Use e-IPE ?
Incumbent Module - Assign Incumbents to Positions (optional)
From the Main Menu, user

navigates to the
Incumbent Module
Survey users can :
• Manage Company
Incumbent List
• Assign one or multiple
Incumbents to a Position
• Export a list of
Incumbents with your
Mercer Benchmark Titles
and Position Class
MERCER 95
How To Use e-IPE ?
Incumbent Module – How to Assign Incumbents to Positions
Survey User can add

new Incumbents
using two methods:
Manually, by
adding individual
Incumbents using
the “Add” button
Bulk Import using a
wizard (“Import”
button)
MERCER 96
How To Use e-IPE ?
Incumbent Module – Manually Assign Incumbents to Positions
Manual method of
adding Incumbents:
After pressing the
“Add” button on the
Incumbent List
page, the following
screen appears
Survey User must
provide all required
fields, marked with
asterisk (*)
From this screen
Survey User can
also directly match
Incumbent to
Company Position
MERCER 97
How To Use e-IPE ?
Incumbent Module – Bulk Import Incumbents
Bulk Import method for

adding Incumbents:
After pressing the
“Import” button on the
Incumbent List page,
Survey User enters the
import wizzard
Survey User can
generate a blank
template by providing a
file name and clicking
on the “Export” button
Once all required fields
are completed and the
import file has been
saved, User clicks on
the “Next” button to
enter the Import screen
MERCER 98
How To Use e-IPE ?
Incumbent Module – Bulk Import Incumbents
To import Incumbents in
bulk from an import file:
Survey User specifies
the location of the
import file
Presses the “Import”
button to load the file
System begins
processing the import
file & when finished
displays import status:
If errors occur, User
can enter Import
Summary page to find
out about the details
and correct them in
the import file.
MERCER 99
How To Use e-IPE ?
Incumbent Module – Assigning Incumbents to Positions
In the Incumbent List select one or more Incumbents and click the “Assign” button to match
to Comapny Position
MERCER 100
How To Use e-IPE ?
Incumbent Module – Assigning Incumbents to Positions
In the Position Evaluation List select a Position and click the “Assign Incumbent” button to
match to an Incumbent
MERCER 101
How To Use e-IPE ?
Reports Module
MERCER 102
How To Use e-IPE ?
Reports Module – Report list
MERCER 103
How To Use e-IPE ?
Reports Module – Downloading a Report
MERCER 104
How is this used in survey data submission?
• The position evaluations are stored in our online database only.

• The Actual Title you entered into eIPE system should corresponds to your data collection
kits.
• Add the finalised MUPC and PC from eIPE system to the submitted incumbent in data
collection kit.
MERCER 105
MERCER

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Mercer International Position Evaluation TM

System (IPE) v3.1

Training Session for APCBF Members

Survey Process & Methodology

Job Matching: Mercer Universal Position Code System (MUPCS)

International Position Evaluation™ System (IPE) v3.1

Step 1 Step 2 Step 3 Step 4

Submit Data checking

1. Executive 2. Management 3. Individual Professional 4. Para-Professional

010 Subsidiary/Division/Global Line of A division/subsidiary/global line of business running independently of other

Chairman of the Board

Tier 1 Company Management Business Area Management Chief Executive / President

Affiliate/Subsidiary Affiliate/Subsidiary TIER ONE

Region Region Region TIER TWO (2)

Outcome of Job Match Process

Managing Director 100.030.110 – General Manager/Country Manager

Sales Rep Sales Rep

Finance Manager 420.100.350 Sales Representative

• The Mercer IPE™ is a system designed to objectively determine the

– A reliable basis for Pay for Position

Position evaluation is: Position evaluation is not:

Organisation size is determined by monetary scale such

Impact Impact Assess impact level a position has on organisation.

Assess relative contribution that a position holder makes

Knowledge Measure the nature of knowledge required in the job to

Knowledge Team Team dimension.

Assess the breadth (geographic context) in which the

Organisation Complexity Teams Environment

To determine the degree for this factor:

– Determine the size of the organisation by:

- Determining the nature of the organisation and its number of employees

- Calculating adjusted revenue

– Determine the nature of impact by:

- Identifying the area of the organisation impacted by the position holder

– Determine the contribution level by:

- Determining a position holder’s relative contribution to

Steps to determining an organisation’s size:

Step 1: Identify organisations.

Step 2: Determine the nature of an organisation

Step 3: Calculate the adjusted revenue.

Step 4: Determine the degree using adjusted

Step 5: Size the organisation.

Subdivide the company into smaller organisations that

Tangible products - Products organisation

Product Development Production Sales and Service

Intangible products - Services organisation

Creation Application Sales and Service

Production design. Final engineering of production-ready specifications and manufacturing

external communications, such as public relations, advertising and marketing collateral.

Delivery of solutions-based services. Generally includes idea-based services such as

Physical delivery of service. Distribution of services to customers through personal

From Economic volume (Net Sales Turnover, Assets) To final

Tangible products - Products organisation

4 2 1.5 2 2 2.5 1 1.5 1.5 2

Basic Procure Apply Distri-

=> Degree level for Size : 4

Example: Sales & Technical Service Organisation (150 employees)

Economic Size Degree Level: 4

Degree Level for Size of Organization: 4

1 Delivery Marked contribution to defining the

Vision, mission &

Hard to Easily discernible Directly and Quite marked Predominant

Impact degree 5 - Visionary Contribution