This will be due to a failure in one of the three aspects from above, either the job analysis, the factor and sub-factor definition or finally in the assessment of the job against the factors. It accounts for differences in wage rates for various jobs on the strength of job factors. You then find the number of points that a job gets from the number of points assigned to each sub-factor for a job. No attempts are made to break down the jobs by specific weighted criteria. To make sure the ranking and structure does this properly, it's a good idea to gather a team from across the spectrum of expertise and skillsets within your company to assess this. It also defines what is expected for the four levels of each sub-factor. The usual process followed in this method is as under: 1. Firstly, a clear, rational pay structure and obvious progression helps your employees to understand what qualities and skills you value. You should always, at the end of your job evaluation make the pay structure clear to your employees and use it to develop your teams in the direction your company wants to go. In spite of the above-mentioned merits, this method suffers from the following limitations: It sometimes seems to be arbitrary, though it takes the views of representatives of trade unions. This method is analytical as jobs are broken into sub-factors and components. The factors should be as objective as possible and reflect the whole company’s preferences not simply your own. Common jobs are selected because it is easier to discover the market rate for them. In order to increase the reliability of ranking, this exercise is undertaken twice or thrice b… This particular form is used by more or less every industry to evaluate their … Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking. No standard list of factors. The objective of job evaluation is to determine which jobs should get more pay than others… The weight given to an employees role will then provide the basis for deciding their salary. Since the amount of responsibility or other factors may vary from job to job, the point system creates several levels associated with each factor. It is useful as a first and basic step of job evaluation. Point values are assigned to all factors in a systematic way, eliminating bias at every stage. This method is best suited to a small company without too complex a structure. The committee agrees upon the base rate, (usually expressed on an hourly basis) for each of the key jobs and then allocates this base rate among the five criteria. This method is best for large companies with large and diverse teams. It is often used in evaluating, the managing administrative and white-collared jobs. It considers the components of a job rather than the total job and is much more comprehensive than either ranking or classification method. If you are not rigorous in developing a pay structure in your company, then you open yourself up to the risk of equal pay claims, a subsequent bad reputation and the loss of future talent as a result. It is essentially a combination of the ranking and point systems. Specifically it means job … In the words of Dale Yoder “Job Evaluation is a practice which seeks to provide a degree of objectivity in measuring the comparative value of jobs within an organisation and among organisations.” It is essentially a job … A final and very important consideration is, if your job evaluation process is rigorous it ensures equity between jobs relative to their worth to the company. You might need to ask yourself if you are being too subjective with your expectations. The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. Job evaluation is only one among several factors in deterring the wage level. It is based on the assumption that it is possible to assign points to the different factors as well as to each degree of each factor involved in jobs and that the sum-total of the points will give an index of the relative value of jobs. Secondly, a clear career progression structure, as outlined by your compensation, will attract driven and motivated employees to your company as they will value the clarity with which you have outlined a path to success and being valued highly in the company. Join our latest webinar to hear experts discuss what the pivotal HR movements will be in 2021 and how people leaders can make this year a success. The factors you choose should be evident in lesser or greater degrees across the majority of roles in your company. It is costly to install, and somewhat difficult to operate for anyone who is not acquainted with the general nature of job-evaluation techniques. It deals with the relationships between jobs within an organisation. 03 Oct 2018 | Owain Simpson, Content Writer. It does not take a great deal of time and does not require technical help. Definition: The Job Evaluation is the process of assessing the relative worth of the jobs in an organization. You risk having very different jobs in the same classification, poorly fitting class descriptors to specific jobs, and oversimplification of the differences between jobs and grades. Thus, according to this system, the clerks may be put into one class, supervisors in a higher class and higher executives on the top class. The listing of factors may omit some elements that are important in certain jobs. The procedure of rating new jobs by comparing with other standards or key job is logical and not too difficult to accomplish. Job evaluation as a personnel term has both a specific and generic meaning. Each job … Job requirements, job specifications, and employee specifications are not considered in the evaluation. Basically, a company will set up a pre-determined number of classifications, for instance, three classifications: low-skilled, high-skilled and executive. It can be easy just to view this process as a formality and a background process but the most effective job evaluation is a tool for developing your teams and employees. Each committee member usually makes this ranking individually and then a meeting is held to develop a consensus on each job. The contents and the value of these jobs may change over a period of time and they will lead to future errors. It takes into account all the factors that a job comprises. The chief differences that are found to exist revolve round a different approach to the collection of information about the job … Each job in the organization is put into a class or grade according to the class description it matches best. These factors will become the unit of measurement for each role to allow you to standardise your evaluation. To give a straight definition, it's the procedure of weighing up an employee's role and orientating it in the wider company structure. Key jobs are jobs that are commonly found throughout the organization and in the labor market. (a) Objectives of job evaluation (i) In basic terms, job evaluation is a process of comparing jobs with one another. After the total points for each job are known, the jobs are ranked. Job Evaluation is a process of determining the importance of a particular job in relation to the other job of the organization. Another drawback is subjectivity, as there are no definite or consistent standards by which to justify the rankings and the fact that because jobs are only ranked in terms of the order, we have no knowledge of the distance between the ranks. The use of the present wages of the key jobs may initially create errors in the plan. If you have successfully assessed the job, analysed its demands and requirements and set out good units of measurement with your factors, then this part is straightforward as each job you assess spits out a number the ranking should ‘take care of itself’. There may be four levels namely, minimum, low, moderate and high. Job evaluations are performed for these reasons. Job evaluation seeks to rank all the jobs in the organization and place them in a hierarchy that will reflect the relative worth of each. You should endeavor to use it within HR development programs, recruitment drives and in PR to best show what you value and that you are thorough and fair in the way you reward employees. Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. This is again a simple method in concept. Jobs within the organization are arranged in some order from the most difficult to the simplest or in the reversed order. It is more elaborate than the ranking method. Selecting a number of keys- jobs in the organization as standards. For example, mental requirements include mental traits, intelligence, memory, reasoning, imagination, general education, specialized knowledge, etc. The factors need to stand alone and not overlap. The main drawback of this system is that it can tell only that one job is more difficult than another without indicating how much difficult it is. It is a very expensive method/system of job evaluation because experts have to be appointed particularly in selecting weights which are based on actual analysis. The critical factors are skill effort, responsibility, experience, working condition, and these factors are broken down into sub-factors. It's important to focus on getting this right for a couple of reasons. That is, all other jobs with similar responsibilities were assigned Dollar 250 for that criterion. This method determines the relative rank of the jobs is evaluated in relation to the monetary scale. Jobs are expressed in terms of fundamental ‘factors’ for instance skills, problem-solving and accountability. It begins with an overall classification of all jobs on the basis of common sense, skill, responsibilities, and experience. A Job Evaluation form is a type of form which is solely used as a document for the purpose of evaluation of jobs. Given that you choose to use the Hay Method mentioned in the previous step, you need to choose the factors that you value most highly within the roles that you are evaluating. Outlining the job. This will also let your employees know what you want to reward. The point method is more sophisticated than the ranking and classification methods. Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. This method is analytical in the sense that it breaks down jobs into various compensable factors and places weights or points on them. 2. It can allow you to find mistakes where roles you know should be higher ranked than others are not where they should be. It is a process which is helpful even for framing compensation plans by the personnel manager. Jobs are examined as a whole instead of individual factors. A criterion-related validity study that seeks to establish an empirical relationship between applicants' test scores and their eventual performance on the job. These are then split into sub-factors and ordered in terms of value to the company. The Objective of Job Evaluation The purpose of conducting job evaluation is to fairly determine the monetary value / worth of a job in relation to other jobs in an organization. .The weights selected are not arbitrary but reflected existing wage and salary practice. These are systematic and formalised systems for evaluating jobs. This is also known as job analysis and its findings are what goes into a job description. A compensable factor is one used to identify a job value that is commonly present throughout a group of jobs. The ranking is provided to the job on the basis of this comparison. When the point matrix and manual are ready, the relative value of each job can be determined. Job specifications are developed in terms of the compensable factors the committee decides to use. This gives you the relative worth of a job relative to the rest of the roles in your company which leads you to your pay structure. You can develop your current employees, showing them how they will be rewarded, you can attract new employees by making it clear how you will reward them and how they can progress with the right skills and experience. This ranking procedure is based on job descriptions and job specifications. Job evaluation essentially seeks to (a) determine the relative worth of various jobs in an organization in monetary terms (b) evaluate the performance of employees on their respective jobs (c) evaluate the importance of various … The system results in more accurate job evaluation because weights are not selected arbitrarily. Register now. Jobs may change over time, but the rating scales established under the point method remain unaffected. This method is probably the simplest as you simply order the jobs in your organisation from high-to-low in terms of their value to the company. Job evaluations allow managers to perform a "physical" on the health of the business. Definition of Bethel and Others. Ranking the key jobs on the criteria by a committee. This involves answering questions such as: what the important tasks of the job are, how they are carried out and what skills and qualities are needed for success. In turn they will focus on these and you will find that you can use the structure of pay in your company to ensure your teams are aware of the direction you want the company to go in. What is a limitation of job evaluation? If you get it right, however, a whole host of good PR and opportunities to boost the image of your company as forward thinking and fair, with good values. The factors are determined from the job analysis. It is essentially a job … This system requires six steps and is usually implemented by a job evaluation committee or an individual analyst. Provides a rate for the job not for the man. This factor deals with the decision-making aspects of the position. Content validity A test-validation strategy … Its findings will be the underpinning for the entire job evaluation process. Finally, you can also represent your company as forward-thinking, fair and clear in its values. This process is repeated until all jobs have been assigned relative positions. This step is also called factor evaluation. The factors are mental requirements, skill requirements, physical requirements, responsibility, and working conditions. The usefulness of job evaluation is that it provides a framework for an exchange of views – open discussion and communication. Sometimes, other factors like government policy may dominate the job evaluation The results of job evaluation may not … Werther, B.W and Davis, K (1998) point out that the factor comparison method involves the following steps: Preparing clear-cut job descriptions and job specifications. This technique does not consider all the sub-factors as the operation of the system would be difficult if it considers all the factors. Evaluation of clerical, technical, professional and supervisory jobs handled more or less on the principles that are used in evaluating manual or factory jobs. The difficulty of this method is that it is costly and somewhat difficult to operate compared to conventional non-quantitative techniques. Once that question has been settled, another job is compared against the first two and a similar determination is made. It is neither comprehensive nor systematic technique. For each class, a general description is written indicating the nature of work and responsibility that are included. Here is a clear step by step guide to undertaking a job evaluation that should help you on your way to providing a fair and equal pay structure that will benefit you in all of these ways. It provides an opportunity for a systematic organizational structure. Ranking key jobs, according to wages assigned to each factor. Market pricing is the process for determining the external value of jobs, allowing the manager to establish wage and salary structures and pay rates that are market sensitive. There are four widely used job evaluation methods. It is worthwhile noting which ones are used most commonly in your sector. It uses the job-by-job comparison technique, which is a far more accurate method of measurement. Then you assign different jobs to different categories which then becomes the pay structure. The points for each sub-factor are added to find the total number of points for the job. Judgment refers to the use of knowledge and experience in making the decisions. The jobs are evaluated on the basis of its content and the complexity involved in its … In this guide we use the Hay or Point method, this is the most common method for job evaluation. Job evaluations are not intended as a vehicle to promote or reward people who perform well in their job, if their job … It goes against the common belief that the procedure of evaluating jobs and fixing their wages should be kept separate. Title VII makes it unlawful for an employer to refuse to hire … Preparing a manual for various jobs, fixing values for key and sub-factors, establishing wage rates for different grades, etc. And using the same five factors for all organizations and for all jobs in an organization may not always be appropriate. The committee then allocated Dollar 350 to mental effort, Dollar 450 for skill, Dollar 100 for physical effort, Dollar 250 to responsibility and 150 for working conditions. Dale Yoder, “Job Evaluation is a practice which seeks to provide a category of objectivity in measuring the comparative value on jobs within an organisation and among similar organisations. It forces the raters to consider individual factors rather than the jobs as a whole. Job evaluation seeks to rank all the jobs in the organization and place them in a hierarchy that will reflect the relative worth of each. Under this system, the job raters simply rank one job against another without assigning point values. These are listed below: The point rating system is not without limitations. Once the maximum total points for each job element are assigned under level IV, analysts allocate points across each row to reflect the importance of the different levels. 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