Evaluating Jobs: The Job Evaluation Process

1
Evaluating Jobs The Job Evaluation
Process

• Chapter 6

2
Steps in the Job Evaluation Process

• Understand the jobs to be evaluated
• Decide how many pay structures to use
• Select and apply the most appropriate job
  evaluation method
• Create a pay structure with appropriate pay
  grades and pay ranges
• Develop procedures for evaluating and modifying
  the system

3
Job Analysis

• The process of collecting information on which
  job descriptions are based

4
Job Description

• A summary of the duties, responsibilities, and
  reporting relationships pertaining to a
  particular job

5
Job Specifications

• The employee qualifications deemed necessary to
  successfully perform the job duties for a given
  job

6
Methods of Job Analysis

• Observation
• Interviews
• Questionnaires

7
Functional Job Analysis (FJA)

• Develop generic descriptions of jobs using a
  common set of job functions
• National Occupational Classification

8
Pitfalls in Job Analysis

• Risk of analyzing the person instead of the job
• Job descriptions subject to gender bias
• Job descriptions not kept up-to-date

9
Ranking Method of Job Evaluation

• The relative values of different jobs are
  determined by knowledgeable individuals

10
Paired Comparison Method of Job Evaluation

• Every job is compared with every other job,
  providing a basis for a ranking of jobs

11
Classification/Grading Method of Job Evaluation

• The use of generic grade descriptions for various
  classes of jobs to assign pay grades to specific
  jobs

12
Factor Comparison Method of Job Evaluation

• Assigns pay levels to jobs based on the extent to
  which they embody various job factors

13
Statistical/Policy Capturing Method of Job
Evaluation

• Combines use of statistical methods and job
  questionnaires to derive job values based on
  prevailing external or internal pay rates

14
Point Method of Job Evaluation

• Establishes job values by the application of
  points to each job based on compensable factors

15
Conducting Managing the Job Evaluation Process

• Who conducts the job evaluations?
• Communicating the job evaluation process
• Developing appeal/review mechanisms
• Updating job evaluations

16
Confirming Pay Equity Requirements

• Determine what rules apply
• Identify female and male job classes.
• Establish a body to conduct pay equity.
• Select a gender-neutral job comparison system.
• Collect job information.

17
Confirming Pay Equity Requirements

• Compare jobs.
• Check for permissible differences.
• Adjust compensation.
• Communicate the results.
• Maintain pay equity.

18
Job-to-Job Method

• Establishes pay equity by comparing a female job
  class to a male job class that is comparable in
  terms of job evaluation criteria

19
Proportional Value Method

• Establishes pay equity where no comparator male
  job class exists by extrapolating a hypothetical
  male comparator job class based on other male job
  classes

20
Proxy Comparison Method

• Establishes pay equity in public-sector
  organizations where neither the job-to-job method
  nor the proportional value method can be used

21
Permissible Differences

• Pay differences between female and male job
  classes not considered inequitable because they
  stem from certain specified allowable
  circumstances, such as seniority