Job Evaluation is a technique to rank jobs in an organization on the basis of the duties and responsibilities assigned to the job. The job evaluation process results in a job being assigned to a pay grade. The pay grade is associated with a pay range that is defined by a minimum and a maximum pay rate.

Job evaluation plans have been in use for approximately 75 years in the public and private sectors. There are many variations to the design a job evaluation plan. However, they all basically follow the same approach, which is to value each job in a defined group of jobs based on a common set of generic factors. The first set of decisions that an organization is required to make when installing a job evaluation plan is to determine which jobs in the organization will be covered by the plan and what factors will be used in the job evaluation process.

The second step in the job evaluation process is to collect information about each job to be evaluated. This can be done using a job analysis questionnaire, job descriptions, observation and interviews with employees and supervisors.

Step three in the process is to systematically rate each job based on the job evaluation factors selected. The points assigned for each of the factors are totaled for each job. Table 2 illustrates how the factors are subdivided by degrees. The degrees define the extent that the factor is found in the job. Table 3 illustrates the evaluation of a job. Table 4 Market Pay Line of Benchmark Jobs0102030400100200300400Job Evaluation PointsRate Per Hour

The forth step is to select the benchmark jobs from the jobs that have been evaluated. The benchmark jobs are those jobs commonly found in most organizations and are typically included in salary surveys. The benchmark jobs connect the internal pay structure with the external labor market.

A technique to visualize the relationship between the internal structure and the market (Exhibit 4) is to plot each of the benchmark jobs using the benchmark's total job evaluation points as the X axis and the average market rate as the Y axis. A line of best fit can be developed from the plot. This line can be used as a guide to determine the number of grades, the midpoints for each pay grade, and which jobs should be grouped in the same grade.

Related Topics

Jenss & Associates

Conduct a job evaluationApplies to: Microsoft Office InfoPath 2003, Word 2003 

By Susan M. Heathfield

Your employees want fair pay. Your employees want regular raises. You want to attract and retain talented

employees in your organization. Your employees need clarity about their roles and responsibilities as well as

about what's expected from them. Job evaluation, performed effectively and used to clarify and revise job

descriptions and position responsibilities, is your solution to all of these issues.

As a compensation and benefits specialist, you are responsible for developing a fair compensation plan. Job

evaluation is a tool used to evaluate the worth of each job in your organization and in today's labor market. A

successful job evaluation system can help you make your organization's pay system equitable,

understandable, legally defensible, approachable, and externally competitive. You can use job evaluations

to:

← Clarify job descriptions so that employees understand the expectations of their roles and the

relationship of their roles to other jobs within the organization.

← Attract desirable job candidates.

← Retain high-potential employees.

What is job evaluation?

Job evaluation is a systematic process that you can use to determine the relative level, importance,

complexity, and value of each job in your organization. With a successful job evaluation system, you can

compare each job to other jobs within your organization.

It is best to perform job evaluation after work analysis. Job evaluation, in conjunction with work analysis,

helps you develop a job description that is broad, descriptive, and flexible so that you can adapt the

description to your organization's changing needs.

Assess employee contribution

Job evaluation helps you establish and qualify differences in employee contribution across jobs. These

differences provide a foundation for employee compensation decisions. The job evaluation process

measures the elements of a job and produces an overall score. In each case, you evaluate the job, not the

employee who performs the job.

Assess job content and value

Typically, job evaluation assesses both the content of a job and the value of a job for your organization.

← Job content refers to the type of work performed and the skills and knowledge necessary to

perform the work.

← Job value refers to the job's degree of contribution in meeting your organization's goals and the

degree of difficulty in filling the job.

Factors in job evaluation

Job evaluators often assess jobs based on these factors:

← Training level or qualifications requirements

← Knowledge and skills requirements

← Complexity of tasks

← Interaction with various levels of the organization

← Problem-solving and independent judgment

← Accountability and responsibility

← Decision-making authority

← Degree of supervision required

← Cross-training requirements

← Working conditions

← Degree of difficulty in filling job

Implement job evaluation

The concept of job evaluation often can be intimidating to employees in an established organization.

Employees might worry about losing their jobs, and pay might be decreased after job comparisons and

evaluations are completed. To help employees accept and understand your job evaluation system, approach

job evaluation from an organizational development perspective.

Create a team

To promote widespread support, understandings, and acceptance across your organization, create a cross-

functional team to work on job evaluation. The team should represent various levels and jobs within your

organization.

Select the job evaluation method

The team can work together to evaluate and select a job evaluation method. Train team members in the

requirements of the Fair Labor Standards Act and any other best practices for selecting a job evaluation

method for your organization.

Communicate with employees

During the implementation of job evaluation, regularly communicate with employees throughout the process.

This helps employees feel a sense of ownership from the results of the job evaluation results.

Steps in job evaluation

The standard steps in job evaluation include:

1. Introduce the concept of job evaluation.

2. Obtain management approval for the evaluation.

3. Train the job evaluation selection team.

4. Review and select the job evaluation method.

5. Gather information on all internal jobs.

6. Use information to fully expand job descriptions.

7. Use the selected job evaluation method to rank jobs hierarchically or in groups.

8. Link the ranked jobs with your compensation system or develop a new system.

9. Implement the job evaluation and compensation systems.

10. Periodically review your job evaluation system and the resulting compensation decisions.

Analyze job evaluation methods

Before implementing job evaluation in your organization, select the most appropriate job evaluation method.

Hundreds of job evaluation systems exist. Research the job evaluation methods and resources available

online. Five job evaluation systems are most commonly used:

← Ranking

← Classification

← Point evaluation

← Factor comparison

← Market comparison

Ranking

Ranking jobs is the easiest, fastest, and least expensive approach to job evaluation. It is also most effective

in smaller organizations with few job classifications. To rank positions, order jobs from highest to lowest

based on their relative value to your organization.

The process of job ranking typically assigns more value to jobs that require managerial or technical

competencies. More value is also assigned to jobs that supervise, exercise decision-making authority, or

rely on independent judgment. For example, a job-ranking system might rank the job of CEO as the most

valued job within the organization and the job of product assembler as the least valued.

← Advantages   Simplicity is the main advantage in using a ranking system. It is also easy to

communicate the results to employees, and it is easy to understand.

← Disadvantages   Ranking jobs is subjective. Jobs are evaluated, and their value and complexity

are often assessed on the basis of opinion. Also, when creating a new job, existing jobs must be

reranked to accommodate the the new position.

Classification

The general purpose of job classification is to create and maintain pay grades for comparable work across

your organization.

To conduct a job classification: First, write descriptions for a category of jobs; next, develop standards for

each job category by describing the key characteristics of those jobs in the category; finally, match all jobs to

the categories based on the similarity of tasks, the decision-making exercised, and the job's contribution to

the organization's overall goals.

Universities, government employers and agencies, and other large organizations with limited resources

typically use job classification systems. These types of organizations have many types of jobs at diverse

locations and must maintain equitable and fair standards across all work settings.

← Advantage   Job classification is simple once you establish your categories. You can assign

new jobs and jobs with changing responsibilities within the existing system.

← Disadvantages   Job classification is subjective, so jobs mightfall into several categories.

Decisions rely on the judgment of the job evaluator. Job evaluators must evaluate jobs carefully

because similar titles might describe different jobs from different work sites.

Point evaluation

Point evaluation is the most widely used job evaluation method. In a point evaluation system, you express

the value of a particular job in monetary terms. You first identify compensable factors that a group of jobs

possess. Based on these factors, you assign points that numerically represent the description and range of

the job.

Examples of compensable factors are skills required, level of decision-making authority, number of reporting

staff members, and working conditions.

← Advantage   This method is often viewed as less biased than other methods because the job

evaluator assigns each job's total points before the compensable factors become part of the equation.

← Disadvantages   Subjective decisions about compensable factors and the associated points

assigned might be dominate. The job evaluator must be aware of biases and ensure that they are not

represented in points assigned to jobs that are traditionally held by minority and female employees.

Factor comparison

Job evaluators rank jobs that have similar responsibilities and tasks according to points assigned to

compensable factors. The evaluators then analyze jobs in the external labor market to establish the market

rate for such factors. Jobs across the organization are then compared to the benchmark jobs according to

the market rate of each job's compensable factors to determine job salaries.

← Advantage   This method results in customized job-ranking.

← Disadvantage   Compensable factor comparison is a time-consuming and subjective process.

Market comparison

Job evaluators compare compensation for your organization's jobs to the market rate for similar jobs. This

method requires accurate market-pricing surveys.

The value of job evaluation

Job evaluation is a powerful tool in the compensation and benefits specialist's repertoire. Effective job

evaluation helps you gather information to develop job descriptions that meet the changing needs of your

organization. By implementing a successful job evaluation, you can develop an equitable compensation plan

and attract and retain high-performing and talented employees.

More information

← Conduct an effective pay study

← Use market pay data to develop appropriate pay scales

← Develop a pay structure that reflects your company values

About the author   Susan M. Heathfield is a management and organization development

consultant who helps organizations strategically value and utilize people. Her company

promotes business success and profitability through consultation, executive and

management coaching, organization development strategies, human resources system and

policy development, team building, customized training, and writing.

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HR Guide to the Internet:Job Evaluation: Methods: Ranking

Ranking This method is one of the simplest to administer. Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.

Advantages Simple.

Very effective when there are relatively few jobs to be evaluated (less than 30).

Disadvantages Difficult to administer as the number

of jobs increases. Rank judgements are subjective.

Since there is no standard used for comparison, new jobs would have to be compared with the existing jobs to determine its appropriate rank. In essence, the ranking process would have to be repeated each time a new job is added to the organization.

Ranking Methods

1. Ordering Simply place job titles on 3x5 inch index cards then order the titles by relative importance to the organization.

2. Weighting 3. Paired Comparison

Grouping

After ranking, the jobs should be grouped to determine the appropriate slary levels.

Software

Interactive Ranking Program. Try the Interactive Ranking Program.  

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Job Evaluation

Job Evaluation - What is it ?

Job evaluation is a practical technique, designed to enable trained and

experienced staff to judge the size of one job relative to others. It does

not directly determine pay levels, but will establish the basis for an

internal ranking of jobs.

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. The second method is one of awarding

points for various aspects of the job. In the points system various

aspects or parts of the job such as education and experience required

to perform the job are assessed and a points value awarded - the

higher the educational requirements of the job the higher the points

scored. The most well known points scheme was introduced by Hay

management consultants in 1951. This scheme evaluates job

responsibilities in the light of three major factors - know how, problem

solving and accountability.

Some Principles of Job Evaluation

Clearly defined and identifiable jobs must exist. These jobs will

be accurately described in an agreed job description.

All jobs in an organisation will be evaluated using an agreed job

evaluation scheme.

Job evaluators will need to gain a thorough understanding of the

job

Job evaluation is concerned with jobs, not people. It is not the

person that is being evaluated.

The job is assessed as if it were being carried out in a fully

competent and acceptable manner.

Job evaluation is based on judgement and is not scientific.

However if applied correctly it can enable objective judgements

to be made.

It is possible to make a judgement about a job's contribution

relative to other jobs in an organisation.

The real test of the evaluation results is their acceptability to all

participants.

Job evaluation can aid organisational problem solving as it

highlights duplication of tasks and gaps between jobs and

functions.

Job Evaluation - The Future

As organisations constantly evolve and new organisations emerge

there will be challenges to existing principles of job evaluation.

Whether existing job evaluation techniques and accompanying

schemes remain relevant in a faster moving and constantly changing

world, where new jobs and roles are invented on a regular basis,

remains to be seen. The formal points systems, used by so many

organisations is often already seen to be inflexible. Sticking rigidly to

an existing scheme may impose barriers to change. Constantly

updating and writing new jobs together with the time that has to be

spent administering the job evaluation schemes may become too

cumbersome and time consuming for the benefits that are derived.

Does this mean that we will see existing schemes abandoned or left to

fall into disrepute ? Will providers of job evaluation schemes examine

and, where necessary, modify them to ensure they are up to date and

relevant ? Simply sticking rigidly to what is already in place may not be

enough to ensure their survival.

Job Evaluation - More

Job evaluation is essentially one part of a tripartite subject, which is

collectively referred to as Job Study (other names exist). The three

parts are Job Analysis; Job Evaluation - the information collected is

evaluated using a numerical scale or ranking and rating methodology;

and Merit Rating - BSI definition (32542).

BSI definition - 32529 – “Any method ranking the relative worth of jobs

which can then be used as a basis for a remuneration system”

It is essentially a comparative process.

Job evaluation evaluates selected job factors, which are regarded as

important for the effective performance of the job, according to one of

several alternative methods. The resulting numerical gradings can

form the basis of an equitable structure of job gradings. The job grades

may or may not be used for status or payment purposes.

Explanation:

Job Evaluation is concerned with measuring the demands the job

places on its holder. Most factors that contribute to this job pressure,

e.g. physical strength required, knowledge of mathematics required,

are assessed and the result is a numerical estimate of the total job

pressure. When evaluations are carried out on all hourly paid personnel

the technique’s uses include establishing relative wage rates for

different tasks. It is possible to use it for all grades of personnel, even

senior management.

Illustration:

The Time Span of Discretion is an interesting and unusual method of

job evaluation developed by Elliot Jaques for the Glacier Metal

Company. In this method the job pressure is assessed according to the

length of time over which managers decisions commit the company. A

machine operative, for example, is at any moment committing the

company only for the period needed to make one product unit or

component. The manager who buys the machine is committing the

company for ten years.

References:

Job Analysis

Merit Rating - BSI definition (32542)

Further reading:

NBPI Job Evaluation report No. 83 - Supplement

Author:

Roger Edgell

Job Evaluation Methods

 

There are three basic methods of job evaluation: (1) ranking, (2) classification, (3) factor comparison. While many variations of these methods exist in practice, the three basic approaches are described here.  

Ranking Method

 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 also can be arranged according to the relative difficulty in performing them. The jobs are examined as a whole rather than on the basis of important factors in the job; and the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value.Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking. The following table is a hypothetical illustration of ranking of jobs.

Table: Array of Jobs according to the Ranking MethodRank Monthly salaries1. Accountant Rs 3,0002. Accounts clerk Rs 1,8003. Purchase assistant Rs 1,7004. Machine-operator Rs 1,4005. Typist Rs 9006. Office boy Rs 600 The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organization. Its simplicity, however, works to its disadvantage in big organizations because rankings are difficult to develop in a large, complex organization. Moreover, this kind of ranking is highly subjective in nature and may offend many employees. Therefore, a more scientific and fruitful way of job evaluation is called for.  

Classification Method

 According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. Following is a brief description of such a classification in an office. 

(a) (a)             Class I - Executives: Further classification under this category may be Office manager, Deputy office manager, Office superintendent, Departmental supervisor, etc.

(b) (b)             Class II - Skilled workers: Under this category may come the Purchasing assistant, Cashier, Receipts clerk, etc.

(c) (c)             Class III - Semiskilled workers: Under this category may come Stenotypists, Machine-operators, Switchboard operators, etc.

(d) (d)             Class IV - Semiskilled workers: This category comprises Daftaris, File clerks, Office boys, etc.

 The job classification method is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees without hesitation. One strong point in favor of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs. The weaknesses of the job classification method are:

Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries.

It is difficult to write all-inclusive descriptions of a grade. The method oversimplifies sharp differences between different jobs and different

grades. When individual job descriptions and grade descriptions do not match well, the

evaluators have the tendency to classify the job using their subjective judgments.  

Factor Comparison Method

 A more systematic and scientific method of job evaluation is the factor comparison method. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, supervisory responsibility, working conditions and other relevant factors (for instance, know-how, problem solving abilities, accountability, etc.). Pay will be assigned in this method by comparing the weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighed by importance (the most important factor, for instance, mental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor. The steps involved in factor comparison method may be briefly stated thus:

Select key jobs (say 15 to 20), representing wage/salary levels across the organization. The selected jobs must represent as many departments as possible.

Find the factors in terms of which the jobs are evaluated (such as skill, mental effort, responsibility, physical effort, working conditions, etc.).

Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently.

Assign money value to each factor and determine the wage rates for each key job. The wage rate for a job is apportioned along the identified factors. All other jobs are compared with the list of key jobs and wage rates are

determined.  An example of how the factor comparison method works is given below:

Table: Merits and Demerits of Factor Comparison Method 

MeritsDemerits

  Analytical and objective. Reliable and valid as each job is

compared with all other jobs in terms of key factors.

Money values are assigned in a fair way based on an agreed rank order fixed by the job evaluation committee.

Flexible as there is no upper limitation on the rating of a factor.

 

  Difficult to understand, explain

and operate. Its use of the same criteria to

assess all jobs is questionable as jobs differ across and within organizations.

Time consuming and costly.

 

Point method

 This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in the order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades. The procedure involved may be explained thus:(a) Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc.(b) Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale. The most frequent factors employed in point systems are:

I.                          I.      Skill (key factor): Education and training required, Breadth/depth of experience required, Social skills required, Problem-solving skills, Degree of discretion/use of judgment, Creative thinking;

II.                        II.      Responsibility/Accountability: Breadth of responsibility, Specialized responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/materials;

III.                     III.      Effort: Mental demands of a job, Physical demands of a job, Degree of potential stress.

 The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance.DegreeDefine1. Able to carry out simple calculations; High School educated2. Does all the clerical operations; computer literate; graduate3 Handles mail, develops contacts, takes initiative and does work independently;

post graduate Assign point values to degrees after fixing a relative value for each key factor.

Table: Point Values to Factors along a ScalePoint values for Degrees Total

Factor 1 2 3 4 5Skill 10 20 30 40 50 150Physical effort 8 16 24 32 40 120Mental effort 5 10 15 20 25 75Responsibility 7 14 21 28 35 105Working conditions 6 12 18 24 30 90Maximum total points of all factors depending on their importance to job = 540(Bank Officer)4 Find the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job). This would help in finding the relative worth of a job. For instance, the maximum points assigned to an officer’s job in a bank come to 540. The manager’s job, after adding up key factors + sub factors’ points, may be getting a point value of, say 650 from the job evaluation committee. This job is now priced at a higher level.5 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. A wage survey, usually, is undertaken to collect wage rates of certain key jobs in the organization. Let’s explain this:

Table: Conversion of Job Grade Points into Money ValuePoint range Daily wage rate (Rs) Job grades of key bank officials500-600 300-400 1 Officer600-700 400-500 2 Accountant700-800 500-600 3 Manager I Scale800-900 600-700 4 Manager II Scale900-1,000 700-800 5 Manager III Scale

Merits and Demerits The point method is a superior and widely used method of evaluating jobs. It forces raters to look into all keys factors and sub-factors of a job. Point values are assigned to all

factors in a systematic way, eliminating bias at every stage. It is reliable because raters using similar criteria would get more or less similar answers. “The methodology underlying the approach contributes to a minimum of rating error” (Robbins, p.361). It accounts for differences in wage rates for various jobs on the strength of job factors. Jobs may change over time, but the rating scales established under the point method remain unaffected. On the negative side, the point method is complex. Preparing a manual for various jobs, fixing values for key and sub-factors, establishing wage rates for different grades, etc., is a time consuming process. According to Decenzo and Robbins, “the key criteria must be carefully and clearly identified, degrees of factors have to be agreed upon in terms that mean the same to all rates, the weight of each criterion has to be established and point values must be assigned to degrees”. This may be too taxing, especially while evaluating managerial jobs where the nature of work (varied, complex, novel) is such that it cannot be expressed in quantifiable numbers.

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HR Guide to the Internet:Job Evaluation: Methods: Classification

Classification Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.

The standards do not attempt to describe every work assignment of each position in the occupation covered. The standards identify and describe those key characteristics of occupations which are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply.

Advantages Simple.

The grade/category structure exists independent of the jobs. Therefore, new jobs can be classified more

Disadvantages Classification judgments are

subjective. The standard used for comparison

(the grade/category structure) may have built in biases that would affect

easily than the Ranking Method. certain groups of employees (females or minorities).

Some jobs may appear to fit within more than one grade/category.

Tips

Use Well Defined Grades/Categories Attempt to define the grades/categories so that they do not overlap one another. Overlaps in the descriptions and factors used to identify the grade would lead to problems when assigning jobs to the grades where there is overlap between them.

Biases Examine the Grades/Categories for inherent biases against females and minorities.

Government Classification

1. Position Classification

2. Defense Civilian Intelligence Personnel System

Job Evaluation Process

Definition

What a job evaluation isIt is an objective process to establish and maintain internal equity in matters

of remuneration among positions at the University.

What a job evaluation is not A way to give an employee a raise

A way to reward superior performance1

A way to adjust salaries upward to meet salary rates paid in the

market for certain positions2

A way to “test the waters”

1. This is the role of a Performance Reward Program.

2. The purpose of a Job Evaluation Program is to establish internal equity. The

Compensation Unit may from time to time carry out market surveys to ensure the

competitiveness of the salaries paid out to University employees.

Job Evaluation Process

Procedure

As the Compensation Unit receives several hundreds of requests in a given

year for re-evaluations, we ask you to observe the following rules and tips to

ensure that we provide you with timely and efficient service:

Re-evaluation of a positionTo initiate the re-evaluation of a position, please provide the following

information:

1. A Request for the Evaluation of a Position form signed by the

immediate supervisor, the Unit or Department Head and/or the

employee containing the following information:

o Department name

o Organization code

o Effective date of re-evaluation

o Position title

o Position code

o Grade

o Union

o Name of the incumbent (if applicable)

o Category of appointment: Permanent or contract

o Duration of the contract (if applicable)

o A statement explaining the context and the justification for a re-

evaluation

o A revised job profile including:

Education and experience required for the new position

Other specific requirements (no more than four)

o A completed Job Evaluation Questionnaire

o Organizational chart

o Any other information relevant to the re-evaluation

o An up-to-date resume of the incumbent to the position

Evaluation of a new positionWhen a new position is authorized and needs to be evaluated, the following

information is required:

1. A Request for the Evaluation of a Position form signed by the

immediate supervisor and the Unit or Department Head containing

the following information:

o Department name

o Organization code

o Effective date of hire

o Position title

o Category of appointment: i.e. permanent or contract

o Duration of the contract (if applicable)

o A job profile describing the nature of the position including:

Education and experience required for the new position

Other specific requirements (no more than four)

o A completed Job Evaluation Questionnaire

o Organizational chart

o Any other information relevant to the evaluation

HR Guide to the Internet:Job Evaluation: Methods: Point Method

Point Method A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:

1. Skill 2. Responsibilities 3. Effort 4. Working Conditions

These factors can then be further defined. 1. Skill

1. Experience 2. Education 3. Ability

2. Responsibilities 1. Fiscal 2. Supervisory

3. Effort 1. Mental

2. Physical 4. Working Conditions

1. Location 2. Hazards 3. Extremes in Environment

The point method is an extension of the factor comparison method.

Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.

Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.

Advantages The value of the job is expressed in

monetary terms. Can be applied to a wide range of

jobs.

Can be applied to newly created jobs.

Disadvantages The pay for each factor is based on

judgments that are subjective.

The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities).

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Job Evaluation Techniques

Contributor By Heidi Cardenas, eHow Contributing Writer Article Rating: (0 Ratings)

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Job evaluation determines the worth of the jobs in a company relative to one another. Evaluation analyzes the value of jobs and is the source of targeted job descriptions. Job evaluation assesses the differences in contributions between jobs, job content and value and provides the basis for compensation decisions. Four common techniques---ranking, classification, point method and factor comparison--- are often used by many job evaluation systems.

Job Evaluation by Ranking

1. The easiest and best-known evaluation method ranks each job compared with all other jobs, with a factor like job difficulty. An important part of job evaluation is consistency---all jobs are ranked with the same factor and compensation is based on the ranking order. This method, easy to understand and use, takes less time to implement than most others. It's relatively simple but doesn't go in-depth to target and highlight competencies in relation to job value in the organization.

Job Evaluation by Classification

2. Job classification is another easy and well-known job evaluation method that categorizes jobs into groups of relatively the same value for compensation. The groups are classes or grades and are categorized by similar compensation factors like independent judgment used, skills required and physical effort needed. This method's advantage is that many jobs are already grouped for pay ranges and organizational planning although class and grade descriptions can be difficult to define.

Job Evaluation by Point Method

3. The point method is a more-complicated, analytical technique. It involves assigning points based on several compensation factors and the degree to which they are present in each job, to arrive at a quantitative point rating. It is a widely used job evaluation technique.

Job Evaluation by Factor Comparison

4. Another popular job evaluation technique, the factor comparison, is a more in-depth ranking method. It ranks each job for several compensation

factors like skill, knowledge and difficulty, which are combined into a total rating.

Who Performs Job Evaluations

5. Job evaluations are done by human resources departments, compensation specialists, consultants, auditors, managers and supervisors. They are part of a compensation system and can be used as the basis not only for pay but also to determine comparable worth, to create job descriptions, to develop titles, to plan for employee training, development and succession, and for business organization. Job evaluation is a valuable analytical tool to manage a business.