A job evaluation is a tool used by an organization, often by the human resources department, to identify the value of a job. It does not focus on how well an employee is doing the job. Rather, it involves examining the functions of the job itself. A job evaluation allows an organization to make well-informed decisions on recruitment, retention and compensation. The job evaluation exercise involves several steps that will help the organization long into the future.
How to Conduct a Job Evaluation Exercise
Dedicate a team to conduct the job evaluation. The job evaluation process should include input from a variety of people within the organization. This allows you to gain a full understanding of a job and its role within the organization. A well-balanced, diverse team also promotes support of the organization’s efforts to improve the quality of its human resources practices. You should ensure that the job evaluation team communicate what it is doing to the entire organization, so every employee knows what a job evaluation is and what the process will entail.
Examine the job functions and requirements. Job functions include all of the activities conducted within the job and many other details. You should examine what the job does, how much or how little the person in the job interacts with internal or external stakeholders, and where the job falls in the chain of command. You should also determine the requirements of the job, including mental ability, educational requirements, levels of experience and physical requirements. Many of these details should already be included within the job description for the position. Additional information can be gathered by meeting with employees and department managers.
Determine the value of the job to the organization. Once you are aware of what the job actually does, you must identify whether or not those activities are meaningful to the mission of the organization. You should consider the amount of people or money the job involves managing, as well as the effects the job has on other areas of the organization. You may rank or classify jobs based on the value or benefits they present to the organization.
Use the job evaluation to develop human resources strategies. Once you have identified the importance of a particular job to the organization you may use this information to administer compensation and benefits appropriately. If you have classified or ranked jobs by levels of importance, your organization may be able to eliminate positions that do not support its mission.
Before conducting a job evaluation you should ensure you have accurate and up-to-date job descriptions to serve as a basis.
Ranking and classifying jobs can be a subjective process, which can lead to poor decisions involving administering compensation and benefits. By having a diverse team, you can avoid the negative consequences of subjective job evaluations.