Job Evaluation

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[vc_row][vc_column][vc_single_image image=”1198″ img_size=”large”][/vc_column][/vc_row][vc_row][vc_column][vc_custom_heading text=”Job Evaluation” use_theme_fonts=”yes”][vc_column_text]Job Evaluation is a systematic determination of the relative worth of jobs within the organization and is concerned with the value of a job to the organization. The job evaluation process determines the worth of each job, relative to other jobs, by establishing a hierarchy of positions within an organization. This entire process is based on the job description, i.e. job description preparation is the first step in the job evaluation process.

What does job evaluation entail

Job evaluation methods can be either non-quantitative, e.g. job classification or quantitative, e.g. job point-factor process. The latter utilizes compensable factors to include skill, responsibility, effort, working conditions and supervision of others to determine internal worth. The HR Job analysis and evaluations are a key step towards developing an internally consistent compensation system as a strategic tool for your organization.

Objectives of undertaking a job evaluation

There are various objectives for doing job evaluation. It is recommended that an organization should adopt a routine job evaluations schedule, say every 4 to 5 years. The benefits of job evaluation include – job classification structure, creating an equitable salary and compensation structure in an organization. We cannot repudiate this because it’s the bare truth. Below are some of the main reasons why job evaluation is performed;

  • Sound Wage/Salary Policy

Job evaluation is basically an attempt to measure the real worth of each job by a process of expert judgement. Therefore, any wage policy based on a scientific job evaluation is bound to be systematic and sound.

  • Settlement of Wage Disputes

The chances for disputes and grievances regarding the individual rates of wages are very rare. Even if there arises any disputes, it can be conveniently settled by referring to the job evaluation machinery/process.

  • Better Control over Labour Costs

Job evaluation enables the management to exercise effective control over the labour costs, because they can give appropriate pays for the each job.

  • Building up of Employee Morale

Since this system aims to reward employees’ suitability, it will help to build up employee morale and bring job satisfaction.

  • Proper Placement of Personnel

It helps in selecting the right man for the right job. Besides, this system facilitates to form a logical basis for designing training programmes for the worker.

  • Elimination of Personal Bias

The evils of personal bias, favoritism and arbitrary judgement on the part of the management in fixing wage differential e.t.c. are avoided, because wage rates are set by experts other than the management and that too after a careful job evaluation programme.

  • Reliable in All

This system provides well-defined methods for measuring various jobs. Besides, it also helps to justify the existence of different scales for different jobs. For these reasons, it is accepted by both workers and the management without any hesitation.

  • Useful Information

To back up recruitment process as job evaluation is critical to the development of job adverts, assessment of the applicants, and negotiation of the appropriate pay and compensation.

Provides information which may be used in staff promotion, training and redeployment.

Very helpful in employee development in terms of career pathing and planning, which assists the employer in succession planning.

Reasons for job evaluation

Job evaluation may be performed for various reasons which include:

  • To determine what positions and job responsibilities are similar for purposes of pay, promotions, lateral moves, transfers, assignments and assigned work, and other internal parity issues. It is important that employees perceive your workplace as fair, equitable, and the provider of equal opportunities for employees. Your process for determining pay and promotional opportunities should be transparent for employees to see and understand.
  • To determine appropriate pay or salary grades and decide other compensation issues. This is a significant factor in employee satisfaction in the workplace. Employees do talk about their pay and it’s legal for them to talk about their pay. Public employee pay is posted to the world. Employees will identify any compensation inequities in your organizations’ pay system.
  • To help with the development of job descriptions, job specifications, performance standards, competencies, and the performance appraisal system. These vehicles, particularly in large organizations, need to be equitable, and not dependant on the boss, individual managers, and departmental whims. Employees always compare notes – and employers who keep this in mind as they develop their employee systems – win employee loyalty and commitment.
  • To assist with employee career paths, career planning or career pathing and succession planning. Having a career path that provides opportunities for employees is important to all employees, but it’s especially important to your millennial employees. Listen to the language they use when they move on to another organization. Most often they leave you for a better opportunity, a promotion, or a position where they perceive they have more career potential.
  • To assist the employee recruiting process by having in place job responsibilities that help with the development of job postings, the assessment of applicant qualifications, suitable compensation and salary negotiation, and other factors related to recruiting employees.
  • Last but not least, job evaluations play a big role whenever a new job position is created. In such a scenario, the evaluation is done hand-in-hand with a job analysis.