Key Steps in Job Evaluation and Key Consideration for the Process

Key Steps in job evaluation and key consideration for the process

Steps to develop a job evaluation system using the point system

1. Identify the key compensable factors that differentiate the value of various jobs and develop a clear definition of each factor.

2. Develop a measuring scale for each factor so that the extent to which a certain factor is present in a particular job can be well measured. Each degree within the scale should be carefully defined.

3. Weight each factor based on the value that each of them brings to the firm. A system can then be produced to provide a point total for each factor across the degrees. The weights can then be applied to all jobs included in the job evaluation system.

4. Apply the job evaluation system to every job so that a point total can be generated for each job, which will indicate the importance of the job for the firm .So that a hierarchy of jobs can be created.

5. Test the validity and reliability of the job evaluation system. Make sure the system does measure what it’s supposed to be measuring and produces the same point scores for each factor for a given job for every evaluator who uses the system. Also, calibrate the system to the market and test for market fit.

6. Make necessary revisions based on the test results. Finalize the evaluation system and derive a final hierarchy of jobs according to the point total that each scored.

Key consideration

Job evaluation is an internal ranking process and should be separated from the pay associated with each individual who is performing the job as a pay structure can be heavily influenced by the external market. Job evaluation should focus on the content and the nature of the job itself rather than the level of performance of the job holder.

Possible Drawbacks of the Point Method System of Job Evaluation

1. It is complex to design the system and it is not easily understood.

2. The process of selecting the relevant compensable factors and applying the...