How do you decide how much a job is worth? 2 ways–you can simply pull a figure off the top of your head and hope that it works or, you can conduct a job evaluation. Frankly, we will prefer you to do the latter as this is more effective.
With a job evaluation, you can weigh the risks, value, and competencies required for a job, and leverage this data to decide on the right remuneration for the role. A job evaluation is one of the best ways to translate effort and skills into a healthy pay packet.
Job evaluation is the process of assessing the worth of a job to decide on how much should be paid for it. During a job evaluation, a combination of factors is used to determine the relative worth of a job and how it compares to other jobs in the organization.
Typically, job evaluation is conducted by the Human Resources or Personnel team in your organization; although in some cases, it can be done via self-assessment or peer review. When done correctly, it helps you to create a ranking order for the roles in your organization and develop a pay structure that is fair, equitable, and consistent for everyone.
Usually, the HR team in an organization evaluates different job roles to arrive at the most appropriate reward for them. This process is well spelled out and often results in the establishment of a hierarchy for the different roles in the organization.
The 4 major steps for job evaluation by management are Job assessment, job rating, money allocation, and employee classification. First, the evaluation officer carries out a job analysis where he or she studies the job description, responsibilities, and specifications. Next, the HR personnel rates the job using the assessment criteria and then assigns a score or value to it.
Based on the information gathered, a money rate is assigned to the job from the existing remuneration pay scale. After doing this, the HR officer creates a title for this job role and classifies existing employees and future employees based on the level of tasks they undertake in this role.
As part of workplace peer review, employees working within the same team can carry out job evaluation. While this type of job evaluation may not be in-depth, it can provide useful insights when it is time for job evaluation by management.
For example, during team bonding sessions, employees can discuss the high and low points of their job and if they feel like they are adequately compensated for the work that they do. Job evaluation by employees is mostly informal, unstructured, and spontaneous.
The major advantage of job evaluation by employees is that it provides useful insights into the thoughts and expectations of your workforce. With this information, you can improve your workplace policies to boost organizational output and employee productivity.
Sometimes, job evaluation happens during a moment of introspection. At one point or the other; whether while you’re sitting at your work desk or simply having lunch, you must have caught yourself reflecting on your job and what it means for you.
During self-assessment, the employee evaluates his or her job in terms of the workload, skills required for its execution, growth trajectory, and compensation. The outcome from self-assessment often spurs the employee to make a decision about the job; that is, whether to stay with your organization or look for other opportunities.
Self-assessment is inherently subjective and so, it should not be the sole determiner of the value of a job. However, the outcome of self-assessment can trigger important conversations in the workplace that can improve your condition of service and productivity.
Job evaluation should be conducted regularly; however, the frequency of this process is not cast in stone. This means that you should establish a job evaluation schedule that works best for your organization after considering all the important factors.
Here are a few times you should consider a job evaluation in your organization:
After executing a new project and hitting some milestones, it may just be the right time to conduct a job evaluation. This is because, after a successful project, you may begin to see some jobs in a different light in terms of how important they are to the growth of your organization.
One of the best times to carry out a job evaluation is immediately after conducting employee reviews. Usually, organizations review employee performance in their job roles at stipulated times. Every employee review exercise provides new insights that are very useful for job evaluation.
During quarterly review meetings in your organization, you can conduct a job evaluation for the different roles you have. Quarterly review meetings help you to stay on track with your goals for the corporate year and to make any short term changes that may be necessary.
Just like quarterly review meetings, your organization can choose to carry out job evaluation during its bi-annual performance assessment. The bi-annual organizational assessment is a strategic means of assessing your company's performance for the 1st half of the year and outlining short-term goals for the next half.
End of the year meetings and annual general meetings in the workplace provides the right opportunity for job evaluation. During this meeting, organizations can assess employee performance, review current job roles, and update job rankings based on the insights gathered for the year.
Before carrying out a job evaluation, you must spell out what you want to achieve with the process. This should not be a problem because a job evaluation already has objectives that are intricate to the process. Thus, what you need to do is tailor these objectives to suit the peculiarities of your organization.
After outlining the objectives of your job evaluation process, the next thing to do is decide who would take charge of the process. As we have already said, job evaluation can be done by the management team, employees, or self-assessment.
The objectives of the process should inform your choice. For instance, if you want to create a new job hierarchy for the roles in your organization, then job evaluation by management is the best way to go about this. However, if you simply want to gather information on employees' perceptions of job roles, then self-assessment or peer evaluation can be a good place to start.
A questionnaire or survey is one of the tools for job assessment and you can create this with online or paper forms. The choice of you or survey design plus the type of questions listed in your job evaluation form must reflect the objectives of the assessment process.
Create a rubric for the job evaluation exercise. A rubric is simply a rating system that specifies the criteria and guidelines for job evaluation. Having a rating system is important because it creates a standardized procedure and reduces evaluation bias that can affect the validity of the process.
Without any doubt, every organization must prioritize job evaluation as it is a major ingredient for objective decision making. Understanding job evaluation can help establish standard procedures for your organization while avoiding pitfalls that can be detrimental to the success of your team.
While conducting job evaluation, be sure to avoid the common pitfall of carrying out a performance appraisal instead. In other words, focus on the worry of the job, in itself, and do not allow the performance of the employee who is assigned the job role, to influence your evaluation.
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