job evaluation methods

2. is a process to determine the job’s level of
importance, contribution to the overall corporate
strategy & performance complexity
in terms of skills, knowledge and
supervisory duties.

3. Job Evaluation is crucial to
create Equitable Pay
Structure and Promotion
Strategy

4. & attracting and retaining
top talent

5. Compensable factors are the
characteristics about jobs that are
used to set pay

6. Compensable factors include:
1. Skill (Experience & Education)
2. Responsibility
3. Effort (Mental & Physical)
4. Working conditions (Location, Hazards ,Physical
demands Extremes in environment)

7. http://www.haygroup.com/ww/downloads/details.aspx?id=924

11. Rank jobs from highest to lowest based on
their relative value to organization
c

12. Assigns more value to jobs that require
managerial or technical skills and to the
complexity in performing them
o

13. Jobs at the top of the list have the highest
value & the jobs at the bottom of the list
will have the lowest value
E

14. Easiest and fastest method
Easy to communicate to employees
Effective in smaller organizations with few job
classifications
y

15. A
But,
Very subjective to the evaluator biases

17. Create and maintain pay grades for
comparable jobs across the organization
c

18. Develop descriptions for a category of
jobs --job classes/grade
J

19. Develop standards for each category by
describing the key characteristics of those
jobs in the category
o

20. Match jobs to the categories based on the
similarity of tasks
o

21. Job classes are established , like office,
clerical, managerial, & then jobs are
assigned to these classifications
E

22. Less subjective when compared to the ranking
method
Easy to explain to all employees
Effective for a variety of jobs
y

23. Simple --once categories are established
New jobs can assigned within the existing system
y

24. But,
The method is subjective, because jobs can fall
into several categories.
When combining jobs into a one category, this
can oversimplify differences between jobs &
can be difficult to write “all-inclusive”
descriptions of a job grade.
g

26. Express the value of a job in monetary
terms
c

27. A set of compensable factors are
identified
J

28. Again the Compensable factors
Are:
1. Skill (Experience & Education)
2. Responsibility
3. Effort (Mental & Physical)
4. Working conditions (Location, Hazards ,Physical
demands Extremes in environment)

29. Assign points to a these compensable
factors based on the perceived
importance to the job
U

30. Once this is done for all the compensable
factors ,evaluate the level to which each
of these factors are present in the job and
assign points (weights) accordingly.
1

31. The points for each factor are totaled to
form a score for the job
U

32. If a position requires 7 yrs of exp.
Lets assume it would be assigned value of 50 points
for this factor
And since yrs of experience is one of the most
important factors, it might be weighted at 1.5, .
So the final value of the experience factor would be
50 points x 1.5 weighting factor = 75

33. Moving to another factor such as education –lets
assume it would be assigned 60 points
But education is less important for the position, so it
might be weighted at a smaller number, such as 0.75
So the final value of the education factor would be
60 points x 0.75 weighting factor = 40

35. Jobs are then grouped by total score and
assigned to salary grades so that jobs with
the highest points would have the highest
pay
v

36. Less biased than other methods
Easy to evaluate new jobs
Easy to recognize the difference between jobs
in the company
y

37. A
But,
Subjective decisions about compensable
factors and the weights/points assigned

39. Evaluate jobs based on characteristics
used in the point method, but without
assigning weights
c

40. Define a set of compensable factors
J

41. One last time…
these are the compensable factors
1. Skill (Experience & Education)
2. Responsibility
3. Effort (Mental & Physical)
4. Working conditions (Location, Hazards ,Physical
demands Extremes in environment)

42. Select a set of benchmark jobs
CJG

43. Are jobs with clear job content,

44. Are jobs with clear job content,
Common in many organizations,

45. Are jobs with clear job content,
Common in many organizations,
Represent the full range of each compensable
factor,

46. Are jobs with clear job content,
Common in many organizations,
Represent the full range of each compensable
factor,
& their market pay data is available

47. Rank the benchmark jobs on the basis of
each compensable factor
J

48. For each benchmark job, allocate market
pay across the compensable factors
J

49. If market pay for a benchmark job is $100,
so how much is for effort, how much for
skills, etc….
J

50. Determine the pay for each job by adding
up the pay from each compensable factor
J

51. Pay Range =
U

52. Pay Range = pay from skill +
U

53. Pay Range = pay from skill + pay from
effort +
U

54. Pay Range = pay from skill + pay from
effort + pay from responsibility +
U

55. Pay Range = pay from skill + pay from
effort + pay from responsibility + pay from
working conditions
U

56. Analytical and objective
Reliable and valid as each job is compared
with all other jobs
y

57. But,
Its difficult to understand & explain
Using the same criteria to assess all jobs is not
accurate as jobs differ within organizations as
with point method
Time consuming and costly

58. That's all!!
Thanks

59. Sources
Hay Group Job Evaluation: Foundations and Applications
http://www.haygroup.com/ww/downloads/details.aspx?id=924
Job Analysis. Chapter 3. Prenhall.
http://www.prenhall.com/desslertour/chapter3.pdf
Job Evaluation Methods Open Learning World.
http://www.openlearningworld.com/books/Job%20Analysis%20and%2
0Evaluation/Job%20Analysis%20and%20Evaluation/Job%20Evaluation%
20Methods.html
Job Evaluation Methods . World at Work.
http://www.worldatwork.org/pub/N47N8-bck2bscs.pdf
Job Evaluation Plan. University of Guelph.
https://www.uoguelph.ca/hr/managers/job-design-job-
evaluation/job-evaluation-plan
Susan M. Heathfield . “Conduct a job evaluation”
http://office.microsoft.com/en-us/infopath-help/conduct-a-job-
evaluation-HA001189535.aspx

60. Image Credits Flickr Creative Commons
Randy Lemoine photostresm
Slide 1
http://farm7.staticflickr.com/6228/6358531411_61c3c1bca3.jpg
James Vaughan, x-ray delta one photostream
Slide 6 , 28 and 41
http://www.flickr.com/photos/x-ray_delta_one/3865887659/
Phil Hearing ,PhotKing PhotoStearm
Slide 3 and 4
http://www.flickr.com/photos/philhearing/5310002921/
Carmelo Speltino, pigliapost PhotoStream
Slide 16
http://www.flickr.com/photos/pigliapost/238737785/
Tony Hisgett ,ahisgett photostream
Slide 25
http://www.flickr.com/photos/hisgett/5129805518/
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