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Employee Relations/Reward

Assessing job size

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Question???????

• Why is one job worth more than another?

• How do you measure or evaluate jobs in a way that is seen as fair?

• One answer – job evaluation

• Another answer– - skills or competency assessment

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Learning outcomesAt the end of this lecture you will understand:

• what job evaluation (JE) is,

• the reasons for using job evaluation,

• methods & process of job evaluation,

• the disadvantages of job evaluation,

• the assessment of jobs according to skills & competencies

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What is job evaluation?

• a systematic comparison of jobs to provide a basis for allocation to grades,

• a focus on the relationship of one job to another,

• not concerned with absolutes-comparative

• measures the size of the job,

• focus on the job not the person

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Job evaluation

• provides a formal system which establishes a ‘feels fair’ hierarchy

• two types– non-analytical (whole job comparisons)

• job ranking, paired comparisons, job classification

– analytical points rating scheme (jobs broken down into component parts)

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Non-analytical JE schemesJob ranking

Each job is looked at as a whole and placed in order from top to bottom

• Advantages: quick, costs little, easy to understand

• BUT– only suitable for a small number of jobs– hard to defend - a matter of opinion– can’t be used for equal value problems

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Non-analytical JE schemesPaired (forced) comparisons

Job A B C D E Total Rank

A - 0 2 0 2 4 2

B 2 - 2 2 2 8 1

C 0 0 - 2 0 2 5

D 2 0 0 - 1 3 3

E 0 0 2 1 - 3 3

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Paired comparisons

• Fairly easy to understand BUT

• Difficult to justify why some jobs are considered more important than others,

• Number of calculations impractical for a large number of jobs (though computer facilities can help)

• Not a defence against an equal value claim

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Job classifications

1. Devise grade definitions ega senior radiographer is a radiographer responsible

for one or other qualified officer or assistant OR working single handed OR carrying

responsibilities greater than those of a radiographer OR mainly undertaking the exercise

of a skill or ability…

2. Slot whole jobs into these grades

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Problems with job classification schemes

• Some jobs don’t fit neatly into a grade

• Is not accepted as a defence for equal value claims

• Can give rise to arguments

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Analytical: the factors

1. Broken down into factors assumed to be common to all jobs in organisation eg– knowledge - decision making– mental effort - communication– physical effort - working conditions– responsibility for resources (human – financial)

How do you choose the factors?

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Analytical schemes (cont)

2. Factors are then weightedBut how do you choose the weighting?3. Job analysis of benchmark jobs

– interview– watching job holder at work– job analysis questionnaire

4. Benchmark jobs scored and scores added up

Haygroup – JE system

• Most widely used JE system in the world

• Uses 8 factors including knowledge, interpersonal skills, decision making

• Long history of successful use (since 1950)

• Produces points scores for jobs

• Links easily to pay market data

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Hay JE - factors

• Knowedge/skills level

• Scope (breadth/planning timescale)

• Interpersonal skills

• Problem solving – routine or complex

• Freedom to take action

• Financial impact

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Advantages of points rating

• Evaluators forced to consider range of factors, helping them to avoid oversimplified judgements

• Appears objective and so more likely to be felt fair

• Acceptable as an equal value defence BUT

• complex • costly to develop, install and maintain

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Ready-made scheme or tailor made?

• Advantages of ready-made schemes– Expertise from consultants– Access to quality pay information

• Disadvantages of ready made schemes– Cannot be tailored to suit the organisation’s

specific circumstances

No JE scheme completely objective, only systematic

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The JE process• Inform and consult staff• Set up a job evaluation committee

– include union/employee reps– include women– train members of the committee

• Decide what JE scheme to use– analytical?– create own?– different schemes for different groups?

• Set up an appeals procedure• Translate JE scheme to pay rates

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Criticisms of JE: whatever the method

• measures job weight– but ignores market pressures

• emphasises the job, not the job holder – but can you separate the two– rewards employees for being non-adaptive

• based on the concept of a hierarchy with some jobs being greater in ‘size’ than others– but organisations becoming flatter– discourages flexibility

NB Job evaluation popular in large organisations

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In conclusion

• Job size has to be assessed somehow.• There is no one best way.• It is important that a pay structure is seen by

employees as fair.• There is a tension between the requirements of

equal value law on the one hand and organisations’ need for flexibility and a process that is quick and not costly on the other hand.