Job evaluation

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Information about Job evaluation
Business & Mgmt

Published on February 27, 2014

Author: CollinsonGrantHR

Source: slideshare.net

Description

The aim of job evaluation is to establish a transparent grading framework with a clear route for pay progression. It  measures the job, not the person doing it. It does not measure the volume of work or individuals’ performance.
Why introduce it?
 To ensure that jobs are graded fairly and to achieve equal pay for work of equal value.
 To underpin new pay and grading structures and ensure that the internal system behind them is fair.
 To assist harmonisation of terms and conditions following merger or acquisition.
 To clarify job profiles and ensure relevant comparisons when benchmarking externally.
Collinson Grant's job evaluation scheme, outlined in this document, is an analytical scheme for evaluating all administrative and managerial jobs. It is not suitable for manual jobs.

Job evaluation

Contents Job evaluation 1

Job evaluation Job evaluation The aim of job evaluation is to establish a transparent grading framework with a clear route for pay progression. It: measures the job, not the person doing it does not measure the volume of work does not measure individuals’ performance. Why introduce it? To ensure that jobs are graded fairly and to achieve equal pay for work of equal value. To underpin new pay and grading structures and ensure that the internal system behind them is fair. To assist harmonisation of terms and conditions following merger or acquisition. To clarify job profiles and ensure relevant comparisons when benchmarking externally. Analytical schemes break down a job into its key constituent parts, such as skill, experience, effort (factors). Each factor is given a weight depending on its importance. They offer rigour, consistency and objectivity. They are not scientific so, for example, judgements will need to be made about the educational background appropriate for job holders. Non-analytical job evaluation examines each job in its entirety. It is quicker than analytical schemes, but we would only recommend it as management tool. It would be unlikely to be acceptable to employees and is not acceptable in assessing equal pay for work of equal value. Job evaluation project – roles and responsibilities Group Steering group Project manager Working group Project teams Job holders/ line managers Job evaluation panel Appeal body Collinson Grant Responsibility Manages-high level policy and direction of the project. Does not second guess the actual results of the exercise. Led by a senior manager who is responsible for the project at the highest level Responsible for the day-to-day conduct and implementation of the project The forum that makes decisions about the various stages of the project. May include employee representatives. If large, may need to delegate tasks to project teams Deliver elements of the project Provide information about the job to enable job descriptions to be prepared and agreed. May give ‘evidence’ to job evaluation panel The body that evaluates the jobs. May be the Working Group The body that hears appeals against an evaluation. It should be separate from the job evaluation panel Offers technical advice on methodology and process/assists with job descriptions/chairs or advises the job evaluation panel 1

Job evaluation Project process Plan. Communicate. Select factors to value jobs (or use existing/proprietary scheme). Design initial factor levels and points values/weights. Select jobs for benchmarking. Design job description. Collect job information. Test scheme (using benchmarked jobs?). Amend/refine scheme if necessary. Train evaluators. Evaluate benchmarked jobs. Evaluate remaining jobs. Confirm evaluations. Publish evaluations (with/without points?). Hear appeals. Develop pay structure. Points rating job evaluation This method breaks a job down into several factors that are scored against a numerical scale. The sum of the factor scores gives the total job size. The most common form of job evaluation, it: is analytical can be specific to the organisation examines each job in the same way provides relative scale is not ‘scientific’. Design Factors should: cover all the significant features of the job population avoid double counting, omission or combining features 2

Job evaluation be a manageable number not be sex-biased. According to E-Reward, the most commonly used factor groupings are: knowledge, skills, expertise and experience communication, contacts and interpersonal skills decision-making, problem solving and complexity impact and accountability people management, leadership and team working various types of responsibility, demands and attributes environment and work demands freedom to act/discretion responsibility for financial and other resources innovation and thinking planning. Although visually appealing, forcing the same number of levels for each factor is not recommended. Some factors have a greater range to be measured. Collinson Grant's job evaluation scheme This is an analytical scheme for evaluating all administrative and managerial jobs. It is not suitable for manual jobs. The details of Collinson Grant's scheme are Appendix 1 of this document. Hybrid job evaluation/competency schemes These schemes have: fewer, broader role profiles simpler evaluation schemes broader pay bands looser performance management criteria, with equal emphasis on reward and developmental aspects pay progression based on personal contribution – that is, a combination of competence displayed and results achieved flexible working hours and arrangements personal choice of benefits. 020713 3

Job evaluation Collinson Grant's job evaluation scheme EXPERIENCE 1 KNOWLEDGE 2 3 4 5 6 7 Short work experience More than six months’ work experience, plus understanding of related activities More than 12 months’ experience of commercial, administrative or technical tasks, plus broad knowledge of related activities Considerable experience of commercial, administrative or technical tasks Extensive experience of a specialist function or of several functions generally related in nature and objectives Broad experience of business practice or of several functions diverse in nature and objectives Extensive experience of the widest spectrum of business activity Communication skills D U C A T I O ii iii i ii iii i ii iii i ii iii i ii iii i ii iii i ii iii A Secondary education and general work training E i 29 32 35 38 41 44 47 51 55 59 32 35 38 41 44 47 51 55 59 63 35 38 41 44 47 51 55 59 63 68 38 41 44 47 51 55 59 63 68 73 41 44 47 51 55 59 63 68 73 78 44 47 51 55 59 63 68 73 78 85 47 51 55 59 63 68 73 78 85 92 51 55 59 63 68 73 78 85 92 99 55 59 63 68 73 78 85 92 99 107 59 63 68 73 78 85 92 99 107 118 63 68 73 78 85 92 99 107 118 123 68 73 78 85 92 99 107 118 123 134 73 78 85 92 99 107 118 123 134 145 78 85 92 99 107 118 123 134 145 154 85 92 99 107 118 123 134 145 154 167 92 99 107 118 123 134 145 154 167 180 99 107 118 123 134 145 154 167 180 193 107 118 123 134 145 154 167 180 193 209 118 123 134 145 154 167 180 193 209 225 123 134 145 154 167 180 193 209 225 241 134 145 154 167 180 193 209 225 241 261 63 68 73 78 85 92 99 107 118 123 68 73 78 85 92 99 107 118 123 134 73 78 85 92 99 107 118 123 134 145 78 85 92 99 107 118 123 134 145 154 85 92 99 107 118 123 134 145 154 167 92 99 107 118 123 134 145 154 167 180 99 107 118 123 134 145 154 167 180 193 107 118 123 134 145 154 167 180 193 209 118 123 134 145 154 167 180 193 209 225 123 134 145 154 167 180 193 209 225 241 134 145 154 167 180 193 209 225 241 261 145 154 167 180 193 209 225 241 261 281 154 167 180 193 209 225 241 261 281 301 167 180 193 209 225 241 261 281 301 326 180 193 209 225 241 261 281 301 326 351 193 209 225 241 261 281 301 326 351 376 209 225 241 261 281 301 326 351 376 407 225 241 261 281 301 326 351 376 407 438 241 261 281 301 326 351 376 407 438 469 261 281 301 326 351 376 407 438 469 509 281 301 326 351 376 407 438 469 509 549 134 145 154 167 180 193 209 225 241 261 281 301 326 351 376 407 438 469 509 549 589 B Probably to GCSE level and training in basic procedures or equipment such as a PC C Knowledge normally gained through further education or apprenticeship D Knowledge of commercial, administrative or technical subjects. May require a partprofessional qualification E Professional or technical proficiency normally gained through study for a professional qualification F Proficiency in an advanced or highlyspecialised field N G Requires mastery of principles, practices and theories, or expertise in several specialised fields, probably gained through special development Communications skills: the extent to which achievement of objectives is dependent upon ‘influencing’ others, within or outside the company, over whom the job holder has no direct authority i Ordinary courtesy and effectiveness in dealing with others ii Important, but not essential, to the achievement of objectives iii Critical to the achievement of objectives Appendix 1 Page 1 of 4

Job evaluation SCOPE 1 2 3 4 5 6 1 or 2 people Up to 10 people Up to 25 people Up to 100 people Up to 250 people More than 250 people 10 14 18 24 WORK OF OTHERS A B D E C G Part-time, immediate supervision while doing the same work as the supervised for most of the time 4 Immediate supervision where most of the time is spent assigning, reviewing, checking work and eliminating ordinary difficulties 7 Supervision of a group of employees, without accountability for results 7 10 5 8 6 9 10 8 D E Management of a group of employees, with accountability for results E F Direction and coordination of several departments or functions through subordinate supervision 18 24 26 20 26 33 30 26 51 64 55 59 51 44 55 59 44 47 41 36 51 44 41 38 33 28 41 47 36 44 47 36 38 28 41 36 33 30 22 33 38 28 36 38 28 30 22 33 28 26 24 24 26 30 22 20 18 Integration of several functions through managers who, in turn, are responsible for individual departments 20 28 30 22 24 16 15 20 18 26 22 24 16 15 14 16 15 14 20 18 12 16 E 12 11 9 11 15 14 12 R 11 64 55 69 74 80 69 86 Appendix 1 Page 2 of 4

Job evaluation GUIDANCE RECEIVED 1 COMPLEXITY A N A T U R E B C O F D U T I E S D E F 2 3 4 5 6 Immediate supervision with short work assignments General supervision where standard practice enables job holder to proceed alone on routine work A definite objective is set and job holder plans and arranges own work General direction only, where job holder works from policies and general objectives Job holder plays a major part in setting own objectives, methods and standards of performance Under board control and direction Use of a few well defined procedures and limited judgement, since the work involves little choice of method 7 Duties demand following a range of clearly defined procedures and taking minor decisions under standard practice or instruction Duties demand following diversified procedures and taking decisions in accordance with standard practice or instruction Substantially diversified procedures and precedents require job holder to devise new methods and modify established practices 16 Working with defined policies and principles, making decisions based on conclusions for which there are few precedents Working within broad policies and principles to functional goals 16 52 10 25 19 13 22 25 19 33 29 37 52 47 58 94 78 64 70 94 78 86 114 175 223 190 205 175 148 190 205 148 160 136 175 148 136 124 104 160 160 114 148 136 114 104 136 124 124 86 124 114 104 86 114 104 94 64 70 94 86 78 104 86 78 70 58 78 70 64 86 94 64 58 47 42 58 52 78 64 70 47 42 33 47 42 37 70 58 52 33 29 52 42 37 22 25 37 29 259 223 190 241 280 241 301 Appendix 1 Page 3 of 4

Job evaluation RESULTS OF ERRORS 1 ACCOUNTABILITY A Easily and quickly detected 2 3 4 5 6 Minor confusion or expense in correction Generally confined to a single department. Correction may involve re-working by others May have appreciable effect on departmental performance May mean significant expenditure or losses May involve major expenditure and/or losses May be critical to the company’s success 10 28 16 49 35 22 B Usually detected in succeeding operations 28 42 49 35 E R Detected usually in reviews of progress 57 O D Detected only in reviews of results 73 81 S 106 E Detected only after decisions have been implemented 97 124 106 134 Rarely detected before consequences are irretrievable 124 134 254 317 273 294 254 220 273 294 220 235 205 178 254 220 205 190 166 144 205 235 178 220 235 178 166 205 178 166 190 144 154 166 190 144 154 115 F 134 178 190 144 154 115 166 144 134 124 89 134 154 115 144 154 115 106 97 R 106 124 89 134 115 124 89 81 65 89 81 97 124 106 97 65 73 R 65 57 49 97 81 73 42 C 73 57 317 273 340 366 396 340 426 Appendix 1 Page 4 of 4

Costs People Organisation Productivity Performance Restructuring United Kingdom Mainland Europe United States of America Complexity, Direct costs, Employee relations, Employment law, Implementing change, Integrating organisations, Lean, Managerial controls, Organisational design, Overheads, Performance management, Pricing, Process improvement, Procurement, Reward, Supply chain, Transitional management, Value chain analysis, Workforce planning collinsongrant.com collinsongranthr.com

33 St James’s Square London SW1Y 4JS United Kingdom Telephone +44 20 7661 9382 Facsimile +44 20 7661 9400 Ryecroft Aviary Road Worsley Manchester M28 2WF United Kingdom Telephone +44 161 703 5600 Facsimile +44 161 790 9177 Web www.collinsongrant.com www.collinsongranthr.com

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