A job evaluation involves the use of a systematic process to determine the importance, monetary worth and complexity of jobs in an organization relative to one another. It uses objective criteria to help companies determine how jobs should be filled, what the pay level (or grade) for these positions should be, and other factors regarding how these jobs should be managed. Show
An effective job evaluation system can help determine the best rate of pay for a position and develop a broad job description that easily adapts to the company’s needs as they change over time. Popular techniques used in job evaluations include ranking, point method, factor comparison and classification, according to the . Reviewing different job evaluation methods will help you create a protocol that works for your department or company. Using a Ranking SystemsThe simplest and most common technique for job evaluation employs a system whereby human resources associates or consultants rank jobs in an organization based on a single factor, such as difficulty or education required to effectively perform the job. They then base compensation on ranking order with the highest ranked position earning the highest pay. The points give an indication of what it takes for a person to move from one of these positions to the next. This least-expensive method of job evaluation works well for smaller businesses with small staffs and tight budgets. Although this method can prove effective, its analytical system does not reach deep enough to determine other things associated with job evaluation, such as the value of the job to the individual organization or experiential competencies necessary to properly perform the job. The Points MethodA more complex job evaluation technique, the point method, requires evaluators to assign points to a number of compensation characteristics based on skill level, responsibility, effort required and working conditions. They then assess the level to which each of these are present in the job and assign points accordingly. The jobs with the highest points garner the highest pay with this popular technique. The Factor Comparison MethodFactor comparison, a sophisticated, yet time-consuming method, utilizes the techniques found in several job evaluation schemes, explains . The first step in factor comparison involves assessing each job based on characteristics used in the point method, but without assigning points. Next, evaluators analyze their findings against the market rate of pay for the compensation factors ranked in the first step. Finally, they establish external benchmark jobs that they use to compare to the job and its compensable characteristics to determine rate of pay. The Classification TechniqueThe classification method requires that evaluators categorize jobs into groups with relatively the same value to a business, according to Academy to Innovate HR.com. The groups are commonly called grades. Evaluators categorize the grades with similar compensation characteristics together. You will often see job grades noted in want ads for government jobs (which often set the pay scale for each job at a grade level). The characteristics evaluators use in these types of performance evaluation methods may include level of responsibility required, competencies required and physical exertion necessary to perform the job. Those evaluating the positions may choose to include other characteristics, such as education or security clearance levels required. A job evaluation is a way for the business owner to rate and rank specific job titles within the company to determine their relative worth. This shouldn't be confused with a performance evaluation that reviews how well an employee is doing at a specific job. Job evaluations are primarily internal evaluations that don't consider the comparison to external jobs and salaries. TipThree common methods of a job evaluation are the ranking method, the classification method and the point method. The Ranking MethodThe ranking method is a typical hierarchy in a company. Jobs are ranked in the order of duties and power. This is often seen in smaller companies with fewer than 40 employees. The top of the hierarchy is considered the most important level; the person who sits at the top has the most authority. As you go down in the ranking method, duties become less specialized and jobs considered less valuable or expendable. Salaries are typically generated in order of job importance to the company. An example of the ranking method might have the vice president of operations over the marketing director. Under the marketing director might be the sales representative followed by a clerk and a receptionist. The Classification MethodThe classification method creates a grading system for each job. The job position might be generic, such as creative associate, but the person filling this level of competency has specific skills and specific duties. For example, you may advertise the job with pay commensurate with experience and education. The classifications would then break down that experience and education into three levels: level one, level two and level three. Level three might be the most educated person with a four-year university degree and three years of applicable experience. Level two might have the requirement of a two-year degree and two years of experience. The level one candidate has no degree but has two years of experience in the related job activities. The Point MethodThe point system is used in large organizations and is usually more expensive to establish, but after it is established, it is easier to implement. It defines roles in a similar way to a ranking system but across various types of skill sets in a large organization. This method often considers 11 to 28 factors that define the level of expertise, importance and need of a specific job. For example, knowledge and skills might be one factor important to a company. Another might be the work environment, while another is communication skills. Each factor is rated, and the total defines where in the hierarchy a position or an employee sits. For example, a top-level manager might need to possess a high level of knowledge and communication skills. The point score, when tallied might be 1,100. A clerk might not need the same level of knowledge or skills and that job's point score might only total 400. From there, the job is graded with the higher-level positions holding a higher grade. The manager might sit at grade 10, while the clerk is at grade four. What is the simplest method of job evaluation?Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also be arranged according to the relative difficulty in performing them.
What is the best method of job evaluation?Point-Factor Method
These factors are divided into different sectors, such as skills, responsibilities, and required effort. These factors are then assigned a numerical weightage. Finally, the overall factors or points for a specific job are added up and compared against other jobs to understand the value of the jobs.
Which method of job evaluation is one of the simplest methods to be adopted?Ranking System Of Job Evaluation
The ranking method is one of the simplest methods of job evaluation. Under this system, the job raters rank one job against another without assigning point values. Jobs within the organization are arranged from the most difficult to the simplest or in the reversed order.
Which is the simplest and oldest method of job evaluation?This is the oldest and simplest method of job evaluation. This is generally used in smaller units where the job raters know all the jobs quite well.
|
