Factors of a Job Evaluation Scheme

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Factors of a Job Evaluation Scheme

A job evaluation scheme is “a method to determine the value of each job in relation to all jobs within the organization.” A job evaluation process is useful because sometimes job titles can be misleading- either unclear or unspecific- and in large organizations it’s impossible for those in HR to know each job in detail. The use of job evaluation techniques depends on individual circumstances.

Job evaluation is often used when: establishing the relative value or size of jobs or roles, providing as objective as possible a basis for placing jobs or roles within a grade structure, making certain that consistent decisions will be made about grading jobs or roles, and certifying that the organization meets legal and ethical equal pay for work of equal value requirements and the legal and ethical requirements not to discriminate on grounds of race, disability, sexual orientation or religion. Businesses should evaluate if certain compromises are necessary, and use a job evaluation method to provide an objective standard from which changes can be made.

There are different aims for job evaluation schemes. First, although there are different job evaluation schemes that can be chosen such as analytical or non-analytical, a job evaluation scheme should be analytical so that sexual discrimination will not be an issue. In its Good Practice Guide on Job Evaluation Schemes Free of Sex Bias the Equal Opportunities Commission (EOC) states that: “Non-discriminatory job evaluation should lead to a payment system which is transparent and within which work of equal value receives equal pay regardless of sex.” Secondly, a job evaluation scheme should be objective. This suggests that the value of the employee’s pay should be based on work performed, and not the job title. Thirdly, the organization that is doing the job evaluation scheme should compare themselves to other competitors in the industry to be sure that their employees are being treated and compensated equally.

Another factor to consider when implementing a job evaluation scheme is the cost. A company has different options when they are choosing an evaluation scheme, whether it be analytical or non-analytical. Obviously, one of the cheapest methods would be for the organization to design their own job evaluation scheme. Still, other companies may choose to buy a package that describes how to implement a job evaluation scheme.

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