A job evaluation is a process in which one can analyze the value of a job in relation to other jobs in an organization. It is a systematic way where one can able to access the relative value of a job by comparing it with other jobs in an organization. In it, the evaluation can be done with the job market outside. It is a worthwhile task as it helps to compare jobs to access their relative worth with an intention to create a rational pay structure.
Do you know? Job analysis is different from job evaluation.
Job analysis is a process where information assembled to know about a job. Job evaluation includes a way to find out the real value of a job by comparing it with other alternatives.
For job evaluation, there is a need to gather accurate information regarding a job. In simple words, job evaluation is a process which starts from the job analysis and terminates once got the right value of a job by comparing it with other alternatives available in the same organization as well as outside.
Generally, Job evaluation is an array to identify, analyze and measure every job against available criteria and weigh the relative value of jobs in a resistant and streamlined way. Kindly note that it is not evaluated with an intention to hike up the salaries.
Why is Job evaluation done?
The basic reason behind this process is that it helps to know about the value of a particular position as compared to other job positions in an organization. It helps to select employees to train or promote them within an intention to strengthen morale or ensure incentive as well as other benefits in the favour of employees.
The process of job evaluation is done at the time when a new post is created or prior to recruitment. Sometimes, this process is initiated at the time of amendment in the existing positions.
What are the methods of Job Evaluation?
Job Evaluation can be done by using the different methods depends upon the organization?
1. Ranking or Grading Method:
In this Job Evaluation method, jobs are arranged in descending order of significance by taking the help of job description and job specification. This level is performed by a committee of experts named as raters. The ranking is allotted as per departmental level, means as per the importance of the job.
This method of evaluation is well-appreciated for small organization’s as it is easy to operate and needs very fewer expenses to process. But it is not recommended for larger organization’s as it has a complex organizational structure where it will not be possible to evaluate the jobs. Hence, they need to choose other methods of evaluation while for small companies, it is perfect as it will take less time, money, and other resources.
2. Factor Comparison or Weight-in-Money Method:
In this process, job evaluation is done by considering common key elements of different jobs which are then weighted and ranked. For the entire process, a monetary valve is allotted to every element of the job and as per these monetary values, individual jobs are weighted. After that, the evaluator becomes able to get the total value of each job.
The factor Comparison method is more accurate as well as systematic as compared to the earlier method. It helps to evaluate the different jobs accordingly different factors. But it is complicated as well as expensive, which endow some organizations to keep away from it.
It is a better option for larger organizations as these can bear more expenses. But it has not been used by organizations, even the large because it is quite complicated to use as the application of weighted and monetary values may comprise bias of rankers.
3. Point Rating Method
This method is well-appreciated. In it, every job is considered individually on the basis of factors like effort, responsibility, skill, and working conditions. All those assembled into a single point score for every job.
The point ranting method has been used by many organizations for years as it ensures a quantitative value for every job. But again, it has disadvantages as it needs to regulate updating which requires extra more. Besides, only skilled workers can use this method.
Can job evaluation do with the computer?
Yes, the job evaluation process that is done by a computer is known as Computer Assisted Job Evaluation. It includes many types of schemes:
Basically, there are two types of job evaluation systems. First, there are schemed known as job analysis in which by taking the help of Link Consultants, the job analysis data are entered either by directly entered into the computer or transferred to it by way of a paper questionnaire.
For this, computer software has used where with the help of algorithms, the organization’s evaluation standards turn the data into scores for every factor and ensure a total score.
In this second method, there are interactive schemes in which they, as well as the manager, takes help to present an array of logically interrelated questions forming a question tree. Whatever answers get by these questions help to calculate the final outcome.
The computer-assisted job evaluation method is worthwhile as it helps to ensure greater consistency. The accurate information will get every time as this scheme is based on algorithms which offer consistent results only. Moreover, this method is well-appreciated in speeding up the process of job evaluation.
Advantages of Job Evaluation
Adjust the Salary Structure
One of the primary reasons that companies use job evaluations is to decide if the organization’ salary structure is accurate. Evaluations can help to discover the high-achieving personnel and help increase organization productivity.
By the use of the outcomes of job evaluations, the executives can determine where pay increases are necessary and where it can also be important to modify pay downward based on worker performance. Moreover, a downward adjustment is not constantly possible when the employee is on a contract or temporary.
Ensure Training Updates
An employee job evaluation requires to be an interactive procedure between the supervisor and the employee. By evaluating employee performance, managers can assist identify areas wherein each employee desires improvement.
Using these statistics, the employer can increase a training agenda so as to assist fortify employee capabilities to the point where every employee is capable of competently carry out his job. Moreover, job evaluation also can perceive amazing employees, and they may be placed in training programs which can assist to intensify their above-average competencies.
Identify Managerial Candidates
The fact is to keep the company successful, there is a need for a competent manager. The process of job evaluation serves to fetch out one’s personnel who might be management prospects. By identifying capability managerial applicants, an organization can develop the employees plan so one can include internal promotions and the utilization of expertise that has experience with the company. Moreover, indulging in job evaluation helps to determine the highest performing employees at the earliest stage.
Analysing the talent
The job evaluation process helps to analyze the ability of employees beyond their current job functions. It endows the company to know about what level of talent is in the house and what sort of jobs, employees can cover.
When the company is going to start a new department, it needs new experienced employees, which needs a high salary to pay but with the job evaluation, the company knows about the talent of employees which can use for new departments.
What is the purpose of job evaluation?
- Analysing and preparing a job description.
- Getting the acceptance from employees once explained them the aim and use of the job evaluation process.
- Know about the experienced employees, HR experts, and union representatives.
- Organisation of jobs accordingly weight age and monetary values.
- Installation of new programs and other amendments after knowing about the strength and weaknesses of the employees.
- Chance the salary packages accordingly the strengthen of the employees
What is the process of job evaluation?
Finding the jobs that need to be evaluated
- Among all the jobs, the evaluator finds out the number of jobs that are needed to be evaluated.
Assembling the relevant information
- The information that needs to evaluate is assembled accordingly the evaluation method.
Determination of job ranking
- To determine the ranking of jobs.
Selection of Benchmarks jobs
- Among all the jobs available, select the benchmarks jobs.
Wage and Salary surveys
- To know about the salary and wages that should give to the employees on the basis of surveys.
Review and feedback
- Check the entire process again before finalising.
Job Evaluation is an effective process which should be made by every company to analyze the real value of a job done by employees. It is a significant task to determine the value or worth of each job done within an organization.
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