Job Evaluation Overview

1
Job Evaluation Overview

• Background
• There is a Need for a Systematic Approach to
  develop company pay structures.
• Based on Job Analysis
• Purpose of JE
• Provides internal consistency in the pay system,
  e.g., internal pay equity
• Rational system - can be explained to employees
• Pay decisions can be defended from DOL audits
  under the Equal Pay Act or Title 7 and EEO.

2
Job Evalution Overview (Contd)

• JE Methods
• Whole Job Approach (1) Ranking (2)
  Classification
• Ranking - most basic used for small firms
• Classification - mainly used for Government jobs.
• Quantitative Job Approach Point Factor
• Point Factor - more complex - uses points
  assigned to compensable factors, and subfactors.
  
• Skill/Competency-based Approach Skill-based pay
• Skill-based pay - uses skill/compentency levels.
  The person, not the job is the source of value.

3
Job Evaluation Overview (contd)

• Compensable Factors
• Used with Point Factor JE plans
• Are generic factors common to most jobs.
• Ex. Skill, Effort, Responsibility, Working
  Condition
• Represent unique dimensions of job - no overlap
• Company must be willing to pay for the factor.
• Factors have weights that translate into
  different amounts of worth points.
• Factors may be divided into smaller subfactors
• Ex. Hay method of Job Evaluation