It is all in the job evaluation method.
In the HR industry we call Job Analysis (JA) the foundation of any HR Department. In a similar sense, then, Job Evaluation (JE) would be considered the foundation to the compensation system.
This video clip outlines the four most common methods of JE’s.
Click here to watch the video “Four Methods of Job Evaluation”
What is the purpose of job evaluation? According to the HR Council of Canada, “Job evaluation is the systematic process for assessing the relative worth of jobs within an organization.” And even more importantly it is “a comprehensive analysis of each position’s tasks, responsibilities, knowledge, and skill requirements is used to assess the value to the employer of the job’s content and provide an internal ranking of the jobs.”
Worth and value are the true purpose of doing a JE; it helps determine wages/salary, an important aspect of the compensation system. It is hard to imagine how an organization could survive long term without some kind of JE system in place. Unfortunately, though, many of them shy away from conducting a JE for many various reasons. New HR practitioners should become knowledgeable on how to conduct JEs in any organization to ensure their value and worth.
Discussion Questions
- Compare and contrast the benefits and negatives of the four methods of job evaluation. Consider why you would choose one method over the other. Be prepared to defend your answer.
Quantitative
– Point Rating
– Factor Comparison
Non-Quantitative
– Ranking or Job Comparison
– Grading or Job Classification - If you were the HR Director of a compensation department which JE system would you recommend to ensure your company is in compliance with pay equity legislation.