Reward Quarter No. 2: Job Evaluation

A quick summary
Reward Quarter No. 2: Job Evaluation

Job evaluation is a systematic way of determining the relative size of roles within an organisation to create internal levels. 

What does good job evaluation look like?

There are many different approaches from complex points and weightings, to simpler ‘job classification’ using descriptions.

We find transparent and intuitive job classification systems often work best.  They enable open and consistent decisions about broad levels rather than ‘pseudo-scientific’ frameworks with secret formulas owned by HR.

Well-designed job classification uses a series of clearly defined factors (as opposed to considering the role as a whole).  So despite being straightforward, still provides equal pay defence.

But the real beauty of job classification is the simplicity.  It can be tailored to reflect the roles, language, values and purpose of your organisation.  Involving employees in the design brings rich content and helps engagement. 

When properly understood, job classification can be used as a basis for career discussions, learning and development planning, and pay structures.

What are the steps for implementing job classification?

  1. Choose your product - consider developing your own bespoke classification system rather than an ‘off-the-shelf’ product  
  2. Train your users – this is usually more about the reasons behind your chosen approach, and ensuring consistent decision-making, as the system is often intuitive
  3. Evaluate your roles -  once a core range of anchor roles have been classified (you will need up to date JDs for this) it’s often straightforward to slot other roles in alongside them
  4. Share with employees – develop a change and communications plan
  5. Integrate into other HR processes - determine which people processes are affected (e.g. pay and benefits structures or competency frameworks) and how they will be impacted

Golden rule

Our golden rule is not to have too many levels in order to keep them clear and distinct.

Too many can blur the understanding of what is required at each level.  Too few levels can result in gaps in operational delivery and lack of career paths.

The ideal is that each factor can be described simply without overlap.  For most organisations, this means having five levels.

Need help with job classification?

A clear grading structure with robust job classification helps employees know here they fit in. It also underpins many people processes such as career development, competency frameworks, learning and development and pay structures. 

If you need help creating a tailored framework, we’d be delighted to hear from you.

 

This short blog is part of the Verditer Reward Quarter.  It’s where we bring clarity to specific topics that combine to create the world of reward.

Think of it like exploring the distinct cultural zones (or Quarters) that make up a city. 

Click here for more.

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Photo: Jewish Quarter, Prague by Loozrboy