Job Evaluation

Job Evaluation Methods

Whole Job Approaches
Ranking - most basic; used for small firms
Uses subjective ratings on single criterion (e.g., job
complexity)
Simple
Paired-comparisons
Alternation

Classification - mainly for government jobs

18 factors used to score jobs
General, Professional and Executive Schedules

Job Evaluation Methods

Quantitative Approach: Point Method
more complex - uses points assigned to
compensable factors, and subfactors
More structured, thus easier to defend
Hay System most well known and most
complex

Steps in Point Method

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Create Job Evaluation Committee

Select Benchmark Jobs
Choose Compensable Factors
Define Factor Degrees
Determine Weight of each Factor
Determine Point Values
Verify Factor Degrees and Point Values
Evaluate All Jobs

Steps in Point Method

Create Job Evaluation Committee
Advantages of JE Committees
Broader job knowledge from different perspectives
Increased participation leads to increased
understanding and commitment to the Job
Evaluations.

Selecting members to be on the JE committee

Job incumbents, managers, HR expert, union reps
Employees who have knowledge of jobs
Manageable size

Steps in Point Method

Select Benchmark Jobs
Generic jobs with similar and agreed upon
characteristics
Relatively stable
Represent entire range of jobs in company
Generally accepted in the labor market for
purposes of setting pay levels

Steps in Point Method

Choose Compensable Factors
Universal factors:

Skill
Effort
Responsibility
Working Conditions

Custom factors
Sub-Factors

Steps in Point Method

Define Factor Degrees
Provides levels within each factor or subfactor
Best to define each level in job-specific terms
Fewer degrees required if system only needs
to cover a smaller range of jobs

Determine Weight of each Factor

Steps in Point Method

Determine Point Values
Set arbitrary maximum (1000 pts)
Determine weighted maximum per factor
If responsibility was weighted 10%, it can have
maximum score of 100

Divide factor maximum by number of degrees

If 4 factors, 25 pts per degree

Steps in Point Method

Verify Factor Degrees and Point Values
Committee members score random set of
jobs
Review scores to determine logical
consistency and fairness
Make sure points are consistent with business
strategy of your firm
Adjust as necessary