Job Evaluation

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Job Evaluation
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Job Evaluation

• Technique for comparing JOBS rather than
  employees.
• system for comparing different jobs
  systematically to assess their relative worth, so
  providing a basis for a grading and reward
  structure.

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Job Evaluation

• Good remuneration systems must be seen as fair
  especially by employees! The law also demands
  that jobs of equal worth should attract equal
  pay. A key factor in fairness will be linking
  the degree of difficulty of the job with the
  reward. Job evaluation can be used to assess the
  relative difficulty of the job.

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Job Evaluation

• Types of job evaluation
• Non-analytical (eg rating, grading, paired
  comparison)
• Analytical (eg points rating, HAY-MSL)

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Job Evaluation

• Using job evaluation for setting pay
• Analyse jobs and rank them
• Group jobs into grades/bands
• Link pay to bands
• Only the first stage is job evaluation

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Job Evaluation

• Job evaluation is, by definition, subjective.
  Subjectivity reduces effectiveness. However,
  analytical systems try to reduce subjectivity.
• Effectiveness of job evaluation can also be
  affected by external forces (eg market shortages)
  and tinkering (eg using perks)

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Job Evaluation Advantages

• Provides a systematic and rational procedure for
  valuing each job
• Ensures a degree of equity and objectiveness in
  remuneration
• Job descriptions generated are useful for other
  activities
• Helps motivation and morale
• Both employee and employer needs are addressed
• Scope for union/employee involvement

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Job Evaluation Disadvantages

• Bonuses can upset relationships
• External factors may do the same
• Lack of allowance for differences in performance
• Assessment can be costly time-consuming
  especially at the start
• Assessment can be inaccurate or approximate
• Its still subjective!