Job EvaluationSubmitted to:

Sir Talha Asim Ghazi

An assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required.

According to Kimball and Kimball, “Job evaluation represents an effort to

determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.”

Definition

Objective of Job Evaluation

The objective of job evaluation is to determine which jobs should get more pay than others.

Gather information and data relating to job description, job specification and employee specifications of various jobs in the organizations.

To determine the hierarchy/Rank based jobs in the organization.

To determine duties, responsibilities and demands of the job with that of other jobs.

Goal of Job EvaluationDefine defensible ranking system

based on rational and acceptable pay structure.

Clarification of job

structures

Attracting desirable

job candidates

Retain high

potential employees

FACTORS IN JOB EVALUATIONJob evaluators often assess jobs based on these factors:

Training level or qualification requirements

Knowledge or skill requirement

Complexity of tasks

Interaction with various levels of org.

Problem solving and independent judgment

Accountability and responsibility

Decision making authority

Steps in job evaluation

Introduce the concept of job evaluation.

Obtain management approval for the evaluation.

Train the job evaluation selection team.

Review and select the job evaluation method.

Gather information on all internal jobs.

Use information to fully expand job descriptions.

Use the selected job evaluation method to rank jobs hierarchically or in groups.

Link the ranked jobs with your compensation system or develop a new system.

Implement the job evaluation and compensation systems.

Periodically review your job evaluation system and the resulting compensation decisions.

Analyze job evaluation methods

Five Job Evaluation are most commonly used.• Ranking• Classification• Point Evaluation• Factor Comparsion• Market Comparsion

Ranking jobs is the easiest, fastest, and least expensive approach to job evaluation.

Jobs are arranged in order form from highest to lowest based on their relative value to your organization.

Advantages     Simplicity is the main advantage in using a ranking system. It is also easy to communicate the results to employees, and it is easy to understand.

Disadvantages     Ranking jobs is subjective. Jobs are evaluated, and their value and complexity are often assessed on the basis of opinion. Also, when creating a new job, existing jobs must be reranked to accommodate the new position.

RANKING

The general purpose of job classification is to create and maintain pay grades for comparable work across your organization.

Universities, government employers and agencies, and other large organizations with limited resources typically use job classification systems.

Advantage     Job classification is simple once you establish your categories. You can assign new jobs and jobs with changing responsibilities within the existing system.

Disadvantages     Job classification is subjective, so jobs might fall into several categories. Decisions rely on the judgment of the job evaluator. Job evaluators must evaluate jobs carefully because similar titles might describe different jobs from different work sites.

CLASSIFICATION

In a point evaluation system, you express the value of a particular job in monetary terms. You first identify compensable factors that a group of jobs possess. Based on these factors, you assign points that numerically represent the description and range of the job.

Examples of compensable factors are skills required, level of decision-making authority, number of reporting staff members, and working conditions.

Advantage     This method is often viewed as less biased than other methods .

Disadvantages     Subjective decisions about compensable factors and the associated points assigned might be dominate. The job evaluator must be aware of biases and ensure that they are not represented in points assigned to jobs that are traditionally held by minority and female employees.

POINT EVALUATION

Job evaluators rank jobs that have similar responsibilities and tasks according to points assigned to compensable factors.

The evaluators then analyze jobs in the external labor market to establish the market rate for such factors.

Jobs across the organization are then compared to the benchmark jobs according to the market rate of each job's compensable factors to determine job salaries.

Advantage :This method results in customized job-ranking.

Disadvantage:     Compensable factor comparison is a time-consuming and subjective process.

FACTOR COMPARISON

Job evaluators compare compensation for your organization's jobs to the market rate for similar jobs. This method requires accurate market-pricing surveys.

MARKET COMPARISON

1. 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.

2. To determine appropriate pay or salary grades and decide other compensation issues.

3. To help with the development of job descriptions, job specifications, performance standards, competencies, and the performance appraisal system.

4. To assist with employee career paths, career planning or  pathing and succession planning.

5. To assist the employee recruiting process by having in place job responsibilities that assist in the development of job postings, the assessment of applicant qualifications, suitable compensation and salary negotiation, and other factors related to recruiting employees

Reasons for Job Evaluation

Is responsible for developing: A fair compensation plan. A successful job evaluation system which can help

in making the organization's pay system equitable, understandable, legally defensible, approachable, and externally competitive.

Compensation and benefit specialist

No centralized job catalog.

For many organizations that may or may not have conducted formalized job evaluations their results are often stored in excel spreadsheets that are shared between HR professionals as needed.  The task of managing and updating these files becomes unmanageable.

No standard approach for evaluation of jobs.

Many organizations conduct ranking that is based on salary or a somewhat subjective measure that is often not repeatable.

Maintenance of catalog and expenses:

If an organization elects to conduct formalized job evaluation the process usually requires a consultant to come in and use a specialized methodology that will allow the organization to get an accurate analysis of their job structure.  .

Problems During Job Evaluation

Corporate governance. This is a problem more and more companies are facing

as they take their businesses into the global marketplace. How do you account for dramatic differences in job requirements based on geography, and who should be in charge of updating and managing those differences?  

Salary surveysIf your organization participates in salary surveys how do

you gain the comfort level that the comparison you are making between your jobs and the industry is accurate?

WorkflowManaging the workflow of a job evaluation. To conduct an

accurate evaluation requires input from multiple sources, how do you keep track of where you are at in any given evaluation as information is delivered from different sources at different times

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