Job Evaluation
Old, Bold or a Story Untold
Marcus Downing
Hay Group
Personal introductions
Context from Clive
Mediums: acetates and flipcharts
Materials: slides and je materials
Expectations and previous experience of je
Content
What is Job Evaluation?
Job Evaluation Processes and Guidelines
Job Evaluation and Pay
Setting Reward Structures Using Job Evaluation
Job Evaluation and Salary Management
Job Evaluation Benefits
Job Evaluation Risks and Considerations
Split half and half
What is Job Evaluation?
What is Job Evaluation?
Job Evaluation is a systematic process for ranking or rating jobs logically and fairly by
comparing job against job or against a pre-determined scale to determine the relative importance of jobs to an organisation.
Which is to say that Job Evaluation … …
IS
Comparative
Judgemental
Structured
Job Centred
IS Not
Absolute
Scientific
Unstructured
Person Focused
Hay is just one method
All to do with relativities: internally and externally
Possible Applications for Job Evaluation
JOB EVALUATION
Reward
Organisational Analysis
Grading
Career Development
Succession Planning
Identifying ‘gaps’ in the structure
Understand relationships between roles
Link to market data
Understanding possible career paths
Underpin the framework
Prime use is for pay
Other secondary uses
Your own application is through pay
Prime use is for pay
Other secondary uses
Your own application is through pay
Job Ranking
Job Ranking
Prime use is for pay
Other secondary uses
Your own application is through pay
Elements of Sizing
Depth & Range
of
Know-How
Planning &
Organising
Communicating &
Influencing
Freedom
to Act
Nature of
Impact
Area of
Impact
(Magnitude)
Thinking
Environment
Thinking
Challenge
PROBLEM SOLVING
KNOW-HOW
ACCOUNTABILITY
+
+
=
TOTAL SIZE
Prime use is for pay
Other secondary uses
Your own application is through pay
15. Emotional effort
2. Knowledge, training & experience
3. Analytical skills
4. Planning and organisation skills
5. Physical skills
6. Responsibility – Patient/client care
7. Responsibility – Policy and service
8. Responsibility – Financial and physical
9. Responsibility – Staff/HR leadership, training
10. Responsibility – Information resources
11. Responsibility – R&D
12. Freedom to act
13. Physical effort
14. Mental effort
1. Communication & relationship skills
16. Working conditions
LEVEL
1 5 16 6 6 6 4 5 5 5 4 5 5 3 3 5 3
2 12 36 15 15 15 9 12 12 12 9 12 12 7 7 11 7
3 21 60 27 27 27 15 21 21 21 16 21 21 12 12 18 12
4 32 88 42 42 42 22 32 32 32 24 32 32 18 18 25 18
5 45 120 60 60 60 30 45 45 45 34 45 45 25 25 25
6 60 156 39 60 60 60 46 60 60
7 196 49 60
8 240 60
Prime use is for pay
Other secondary uses
Your own application is through pay
Job Classification
Slot jobs into grades by comparing whole job with a scale in the form of a hierarchy of grade definitions
The Process
Number and characteristics of grades are defined
Grade definitions to include factors like skills, experience, accountability
Usually only a few grades (differentiation a problem if too many)
A Xxxxxxxx
B Xxxxxxxx
C Xxxxxxxx
D Xxxxxxxx
Prime use is for pay
Other secondary uses
Your own application is through pay
Job Evaluation Processes
and Guidelines
Guidelines in Job Evaluation
The job as it is now
Need to keep in mind at all times
Give example of WWF
Guidelines in Job Evaluation
The job as it is now
Fully acceptable Performance
Need to keep in mind at all times
Give example of WWF
Guidelines in Job Evaluation
The job as it is now
Fully acceptable Performance
The Job & NOT the Person
Need to keep in mind at all times
Give example of WWF
Guidelines in Job Evaluation
The job as it is now
Fully acceptable Performance
The Job & NOT the Person
Aim for
Consensus
Need to keep in mind at all times
Give example of WWF
Guidelines in Job Evaluation
The job as it is now
Disregard current pay & status
Fully acceptable Performance
The Job & NOT the Person
Aim for
Consensus
Need to keep in mind at all times
Give example of WWF
Guidelines in Job Evaluation
The job as it is now
Disregard current pay & status
Fully acceptable Performance
The Job & NOT the Person
No understanding No Evaluation
Aim for
Consensus
Need to keep in mind at all times
Give example of WWF
Jobs Exist In A Context
Changes to one job affect those around them
jobs are intimately related to those around them
Job Family Evaluation Process
Review
Business
Information
Evaluation
Method
Job Information
Judgement
Record of
Reasons
Apply Conclusions
Business
Input
Job Evaluation and Pay
The All–Time Enemy of Job Evaluation……..
Some factors influencing pay
Pay
Profit Share
Dept. Performance
Company Performance
Length of service
Market
Positioning
Individual Performance
Market
Comparison
Internal relativity
Pay “heritage”
Job size
Setting Reward Structures Using JE
JOB ANALYSIS
Job Descriptions
JOB EVALUATION
Process
Methodology
Results
REWARD STRUCTURE
Number
Width
Positioning
PAY STRUCTURE
Policy
Practice
Ranges
PAY PROGRESSION
Market Positioning
Corporate Performance
Individual Performance
Setting Up Reward Structures for Base Pay
Job Families
A job family describes a number of roles which are engaged in a similar or related kind of work.
Job family modelling is a process of work analysis and definition which identifies the levels within a family, and defines accountabilities, performance measures and skills for each level of work.
A completed job family considers how many levels of that type of work there are and describes the key factors which differentiate one level from the next.
Using Job Evaluation to Size Job Families
Evaluation Scores
Job Family
Generic Level A
Generic Level B
Generic Level C
Generic Level D
Generic Level E
Job Family Levels
Accountabilities
…………….
…………….
…………….
Knowledge & Skills
…………….
…………….
…………….
Performance Criteria
…………….
…………….
…………….
Using Job Evaluation to Size Job Families
Levels Defined
Using
Chosen
Evaluation
Methodology
JFM 1
JFM 2
JFM 3
JFM 4
Using Job Evaluation to Set Grading Structures
Finance & IT
Using Job Evaluation to Set Grading Structures
Finance & IT
Using Job Evaluation to Set Grading Structures
Finance & IT
Using Job Evaluation For
Salary Management
JE Benefits
Possible Benefits
A structured framework for pay and grading
Greater clarity and transparency for employees
Identify and tackle anomalies
Improved fairness and better equal value protection
Access to market data to inform cost effective decisions on pay
Possible Benefits (2)
Sensitive in measuring job differences
Enables comparison of dissimilar jobs
Enables benchmarking against jobs outside the organisation as well as reflecting hierarchies internally
Is able to reflect jobs as they change with time
Help to improve recruitment and retention for targeted areas within your business
Provide clear development pathways for your employees
JE Risks and Considerations
Possible Risks
Fears that salary costs will rise
Administrative/process costs rise
There is no fit with the strategic agenda
There are no positive benefits for stakeholders
The organisation takes on too much
Implementation Considerations
the need for and possible problems in getting union involvement
the need for and problems in getting wider business involvement
the need to have appeals processes which do provide a safety valve but don't take up a lot of time
the critical nature of communications to success
Implementation Considerations (cont…)
the requirement to look closely at the new pay policy: what to pay for; the role of increments and the basis for progression etc
the difficulties of getting managers to buy in to a new way of working, and of raising their capability to deal with pay and performance processes
the fact that all this attention to grading and pay will raise expectations, and so the big risk is that change leaves large numbers disappointed.
Questions
Contact/Presentation details
Marcus Downing
Hay Group Ltd
0788 411 0669
0207 856 7027
Marcus_Downing@
Personal introductions
Context from Clive
Mediums: acetates and flipcharts
Materials: slides and je materials
Expectations and previous experience of je
Split half and half
Hay is just one method
All to do with relativities: internally and externally
Prime use is for pay
Other secondary uses
Your own application is through pay
Prime use is for pay
Other secondary uses
Your own application is through pay
Prime use is for pay
Other secondary uses
Your own application is through pay
Prime use is for pay
Other secondary uses
Your own application is through pay
Prime use is for pay
Other secondary uses
Your own application is through pay
Prime use is for pay
Other secondary uses
Your own application is through pay
Need to keep in mind at all times
Give example of WWF
Need to keep in mind at all times
Give example of WWF
Need to keep in mind at all times
Give example of WWF
Need to keep in mind at all times
Give example of WWF
Need to keep in mind at all times
Give example of WWF
Need to keep in mind at all times
Give example of WWF
