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Job Evaluation

Definition:

Job evaluation is the systematic process of determining the worth of one job in relation to that of the other jobs in a company, so that a fair and equitable wage and salary system can be established, as well as it forms the basis for various other Human Resources processes.

 

Objectives & attributes

  • Indicates the relative ‘size’ or ‘weight’ of a job
  • Jobs are ranked in terms of complexity
  • Does not look at the volume of work assigned to a person but rather the demands, complexity, responsibility and competencies required
  • Provides a basis for designing an equitable pay structure: internal and external equity
  • The position is graded and NOT the person in the position i.e. do not look at personal attributes, merits and performance
  • Observes grading rules, therefore eliminates potential subjectivity

Management objective:

Compensation is fair and equitable, Human Resources processes follow a structured and defensible sequence

Benefits of Job Evaluation

  • Jobs are graded in the same system, thereby providing a common reference point and consistency of approach
  • Job grades are defensible and have been determined on a rational/logical basis
  • Able to grade specialist positions as effectively as line positions
  • Transparency: illustrates the fairness or otherwise of the current distribution of salaries
  • It illustrates the competitiveness of current pay scales against market rates
  • The job is graded NOT the person doing the job
  • Job is evaluated as is and not in terms of the future/ideals
  • Jobs are evaluated in a more objective process

Misconceptions

  • Job Evaluation = Performance Evaluation/Management
  • Job Evaluation means I will earn more
  • Job Evaluation means I will earn less
  • Job Evaluation will fix all my company’s problems
  • Job Evaluation will mean that my status will change

Job Evaluation Committee

Why does Job Evaluation Fail?

  • Poor communication
  • Poor implementation
  • Poor administration of system
  • Jobs are upgraded to allow the incumbent to earn more but there has been no change in the job content
  • Insufficient buy-in from management/staff
  • Insufficient support from Top Management
  • Lack of understanding resulting in expectations not being met