Job Evaluation

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Job Evaluation

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.
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.
Job Evaluation

Types of job evaluation:

Non-analytical (eg rating, grading, paired


comparison)
Analytical (eg points rating, HAY-MSL)
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


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)
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
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!

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