What Is Job Evaluation?
Whether you are warming up for an HR job or you plan to establish an organization but need explicit knowledge of salary structuring by job responsibilities. This article on “What Is Job Evaluation” will offer accurate and recent information you can work with.
If you see an organization constantly making gains and waxing stronger, a perfect job evaluation must have been done by the human resource department and other critical stakeholders of the organization. Job evaluation contracts are one way most HR consultancy firms in Canada and other countries make millions in a short time.
What Is Job Evaluation?
Job Evaluation refers to a relative comparison of a job with other jobs in an institution or company to determine the proper income for the employees.
An excellent job evaluation translates to fair and decent pay for employees in line with their job responsibilities, and this is critical to the efficiency and progress of any organization. Also, good pay drives passion, commitment, and motivation, which are essential to service delivery.
The Human Resources department, in collaboration with worker unions and other thirty parties like consultancy firms or social partners, is responsible for job evaluation in the most reputable and well-established organizations.
However, job evaluation is done irrespective of the personal qualities of the job holder rather than the value such a job will add to the growth and efficiency of the organization. The process also works predominantly on basic pay for the employees, while other entitlements are added based on qualifications, experience, seniority, performance, and length of service.
What are the four steps of job evaluation?
The four steps are Data sourcing and collection, Identifying the compensable parameters, Validation, and Modeling, Developing the pay templates.
#1. Data sourcing and collection
The first step begins with gathering data such as ranks, category of available jobs, work schedules, and qualifications. This is to make the job analysis transparent and comprehensive.
#2. Identifying the compensable parameters
At this stage, factors such as job responsibilities, skills, and working conditions will be examined to determine the best pay for each job in the organization.
#3. Verification, and Modeling
This involves a critical review and harmonization of the data collected and analyzed with the compensable parameters to build a pay structure that is suitable and fair. This stage is crucial because the pay structure modeled could span more than a decade, so all hands must be on deck to achieve excellent results.
#4. Developing the pay templates
At this stage, the modeled pay structure is fine-tuned and developed into a template for easy understanding by the board members of the organization and employees, respectively.
What are the three 3 methods of job evaluation?
The three methods used in job evaluation are:
#1. Classification Method
This method evaluates jobs based on education, skills, and work experience, thereby using parameters like Level One, Level Two, and Level Three to categorize the jobs with respect to salaries.
#2. Ranking Method
In this method of job evaluation, the process is carried out based on a hierarchy system of the organization. This could be from the CEO down to the clerk or the cleaner.
#3 Pointer method
This method of job evaluation is applicable in large organizations where there are numerous skillset. In using this method, pay distribution is done according to the required qualification, skills, and experience for each job role.
What are the two objectives of job evaluation?
The two objectives every job evaluation process must achieve are:
- Establishing the worth of each job in the organization.
- Determining the unbiased wage structure in the organization
