1 Employee Relations/Reward Assessing job size

2 Question??????? Why is one job worth more than another? How do you measure or evaluate jobs in a way that is seen as fair? One answer –job evaluation Another answer –- skills or competency assessment

3 Learning outcomes At the end of this lecture you will understand: what job evaluation (JE) is, the reasons for using job evaluation, methods & process of job evaluation, the disadvantages of job evaluation, the assessment of jobs according to skills & competencies

4 What is job evaluation? a systematic comparison of jobs to provide a basis for allocation to grades, a focus on the relationship of one job to another, not concerned with absolutes-comparative measures the size of the job, focus on the job not the person

5 Job evaluation provides a formal system which establishes a ‘feels fair’ hierarchy two types –non-analytical (whole job comparisons) job ranking, paired comparisons, job classification –analytical points rating scheme (jobs broken down into component parts)

6 Non-analytical JE schemes Job ranking Each job is looked at as a whole and placed in order from top to bottom Advantages: quick, costs little, easy to understand BUT –only suitable for a small number of jobs –hard to defend - a matter of opinion –can’t be used for equal value problems

7 Non-analytical JE schemes Paired (forced) comparisons JobABCDE Total Rank A B C D E

8 Paired comparisons Fairly easy to understand BUT Difficult to justify why some jobs are considered more important than others, Number of calculations impractical for a large number of jobs (though computer facilities can help) Not a defence against an equal value claim

9 Job classifications 1. Devise grade definitions eg a senior radiographer is a radiographer responsible for one or other qualified officer or assistant OR working single handed OR carrying responsibilities greater than those of a radiographer OR mainly undertaking the exercise of a skill or ability… 2. Slot whole jobs into these grades

10 Problems with job classification schemes Some jobs don’t fit neatly into a grade Is not accepted as a defence for equal value claims Can give rise to arguments

11 Analytical: the factors 1. Broken down into factors assumed to be common to all jobs in organisation eg –knowledge - decision making –mental effort - communication –physical effort - working conditions –responsibility for resources (human – financial) How do you choose the factors?

12 Analytical schemes (cont) 2. Factors are then weighted But how do you choose the weighting? 3. Job analysis of benchmark jobs –interview –watching job holder at work –job analysis questionnaire 4. Benchmark jobs scored and scores added up

Haygroup – JE system Most widely used JE system in the world Uses 8 factors including knowledge, interpersonal skills, decision making Long history of successful use (since 1950) Produces points scores for jobs Links easily to pay market data 13

Hay JE - factors Knowedge/skills level Scope (breadth/planning timescale) Interpersonal skills Problem solving – routine or complex Freedom to take action Financial impact 14

15 Advantages of points rating Evaluators forced to consider range of factors, helping them to avoid oversimplified judgements Appears objective and so more likely to be felt fair Acceptable as an equal value defence BUT complex costly to develop, install and maintain

16 Ready-made scheme or tailor made? Advantages of ready-made schemes –Expertise from consultants –Access to quality pay information Disadvantages of ready made schemes –Cannot be tailored to suit the organisation’s specific circumstances No JE scheme completely objective, only systematic

17 The JE process Inform and consult staff Set up a job evaluation committee –include union/employee reps –include women –train members of the committee Decide what JE scheme to use –analytical? –create own? –different schemes for different groups? Set up an appeals procedure Translate JE scheme to pay rates

18 Criticisms of JE: whatever the method measures job weight –but ignores market pressures emphasises the job, not the job holder –but can you separate the two –rewards employees for being non-adaptive based on the concept of a hierarchy with some jobs being greater in ‘size’ than others –but organisations becoming flatter –discourages flexibility NB Job evaluation popular in large organisations

19 In conclusion Job size has to be assessed somehow. There is no one best way. It is important that a pay structure is seen by employees as fair. There is a tension between the requirements of equal value law on the one hand and organisations’ need for flexibility and a process that is quick and not costly on the other hand.