Case-Study-on-job-evaluation

Case Study on Job Evaluation

By Garima Saxena, 3EA
Case Study on Job Evaluation

Job evaluation is a traditional tool used by companies to assist in the process of determining pay structures that can be also useful to detect and combat wage discrimination. The aim is to provide a systematic approach to defining the relative worth of jobs within a workplace. It is a process whereby jobs are placed in a rank order according to overall demands placed upon the job holder. Job evaluation does not determine actual pay. It is a technique of job analysis for job assessment and comparison. It is concerned with the demands of the job, such as the experience and the responsibility required carrying out the job.

Job evaluation as a process is advantageous to a company in many ways:

  • REDUCTION IN INEQUALITIES IN SALARY STRUCTURE -
    The main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced.

  • SELECTION OF EMPLOYEES -
    The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees.

  • STANDARDIZATION -
    The procedure of deciding salary discrepancies for different jobs become standardized through job evaluation. This helps in bringing homogeneity into salary structure.

  • RELEVANCE OF NEW JOBS -
    Through job evaluation, one can understand the relative value of new jobs in a concern.

The HR Advisory team of 3EA was recently provided an assignment to conduct job evaluation of a leading jewelry brand. With staff in all the states of India, this organization found that they had an unequal approach to reward across the different regions and cities. Our team worked with them to implement a fair and consistent pay and grading approach. As part of a whole-scale benefits review, the organization wanted to ensure their pay policy was aligned with the different markets they recruit staff from, and at an appropriate level to attract, motivate and retain the right staff cost effectively. As part of this, it was important for them to have a robust job evaluation method that would provide a fair and logical comparison of roles - providing internal equity in pay.

Our experts used the points rating job evaluation technique. It is an analytical method which breaks down each job into a number of factors; for example, skill, responsibility and effort, with the factors sometimes being further broken down into sub-factors. Points are awarded for each factor according to a predetermined scale and the total points decide a job's place in the ranking order. Our experts identified the compensable factors and breaks them down into degrees also weight the factors, determine the number of complexity levels or degrees for each factor, and assign points. The job's total worth was decided by adding up the numeric scores across all factors. This procedure, when conducted across all jobs, resulted in a relative ordering of jobs based on the number of points that each job earns. The team undertook the following steps

STEP 1: SELECT THE JOB CLUSTER AND THE JOBS TO BE EVALUATED
for identification of different job roles across departments.

STEP 2: INPUT JOB INFORMATION
to analyze the job and prepare job descriptions/specifications.

STEP3: SELECT COMPENSABLE FACTORS
to identify factors on which an organization wishes to pay its employees.

STEP 4: DEFINE COMPENSABLE FACTORS
to define what each factor will mean in the context of the job evaluation plan.

STEP 5: DEFINE FACTOR DEGREES
to decide how many degrees should be on the scale for a given factor or sub factor.

STEP 6: DETERMINTE TOTAL POINTS
to assign point values to factors as to how many total points the job evaluation plan will have.

STEP 7: EVALUATE JOBS
to find out evaluation of unique jobs and discover fit between the key jobs.

The results of the activity were written in a job evaluation manual. Documentation included the rationale for the factors chosen, the rationale for weighting the factors, the rationale and procedures for assigning points to factor degrees, and, finally, a description of the factors, sub factors, and the degrees assigned to each. This exercise created a matrix showing the relative position of these roles which was commented on and signed off by their senior management. This ensured the internal acceptability of the results. Our experts facilitated groups of the organization's trained evaluators and line managers to assess where the remaining roles should be positioned within the matrix.

It was also ensured that the methodologies were consistently and fairly applied, and would enable comparison with external benchmarks. Our consultants have been instrumental in the appeals process, ensuring all staff members can be confident that the positioning of their role has been based on correct job information and consistent application of the job evaluation method.

The success in this case has been not only in adopting a standard approach to evaluating and mapping roles, but also tailoring the approach to the needs of this particular organization. Our experts have brought independence and fairness to the process. We worked alongside the HR practitioners to explain the methodology and process to staff members, and trained new evaluators to carry out the evaluation of appeals.

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Article by: Garima Saxena, 3EA