Evaluating the Value of Work
Job evaluation is a method of systematically analyzing and evaluating jobs against a consistent set of compensable factors. Job evaluation is used to determine internal equity of jobs and results in a relative ranking of positions expressed in terms of grades or clusters.
The popularity of job evaluation has waxed and waned over time, falling in and out of favor in corporate America. As a WorldatWork Workspan article states, “the dust has settled and, after an affair with new and progressive methods for valuing jobs and work, organizations seem to be re-examining the old way – and returning to it.” (Workspan, June 2003) Well-designed and validated job evaluation systems can add value to determining internal equity with external competitiveness – the best of both worlds.
PORTICO can help you:
- Determine whether job evaluation can add value to your organization
- Explore job evaluation methods and select a job evaluation method that supports your strategy
- Define job content
- Establish a thorough job analysis and interview process
- Conduct job analyses
- Custom design and validate a job evaluation plan
- Train a job evaluation committee, conduct job evaluation and/or participate on your organization’s Job Evaluation Committee
- Translate job evaluation points into salary dollars (See Base Compensation)
- Audit the results of job evaluation and/or identify implications of results for other HR systems
- Develop job evaluation policies and procedures
Although job evaluation may not be right for all organizations, in using only external market data for assigning job value, the pay system will only reflect values that other organizations have placed on jobs. Solely relying on the external market will limit management’s ability to use compensation to support a business strategy.
Reference: Balderrama, J. (2003) Rediscovering job evaluation. WorldatWork Workspan, June 2003, Volume 26, Number 6
