Best Job Evaluation Methods in 2022

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Best Job Evaluation Methods

In these pandemic times, every industry is constantly changing strategies to optimize efficiency and productivity. In pursuit of the same, employers have started treating employee needs and demands as a priority. For instance, wellness and safety during this time of upheaval.

Blame it on the tussle to rethink and define the best practices; that it is two years in the pandemic, and the curve went from “the Great Firing”  to “The Great Resignation”. But, thanks to technology advancements that provided various solutions in form of recruitment software hi-tech-based job evaluation methods, and many others.

In this blog, let us discuss how various job evaluation methods are helping employers to evaluate the worth of their employees and everything necessary about job evaluation.

What is Job Evaluation?

Job evaluation is a systematic process for identifying the job’s relative value concerning others’ roles and responsibilities in an organization. It can be broadly defined as process for-

  • providing the basis for deciding categories and  salary structure
  • analyzing and assessing jobs to realize the worth of the similar
  • achieving pay equity between jobs and worth

Job evaluation process is necessarily-

  • Subjective and systematic
  • Conducted by specially trained personnel
  • Differentiated from job analysis

Why is Job Evaluation required?

Job evaluation is required to ensure that employees are being compensated fairly and equitably. Employers can identify the specific skills and responsibilities that contribute to each position by conducting job evaluations and then assigning a corresponding salary. This process also helps to ensure that employees are being paid based on their individual productivity and not simply on their seniority or rank within the company.

Let us list a few of the significant reasons to understand why employers conduct job evaluation:

  • To assess and rank the worth of different jobs within the organization
  • For compensation planning by allowing organizations to identify which jobs are more important and need to be compensated more highly
  • For workforce planning and helping organizations identify which positions need to be filled to meet the goals and objectives
  • For identifying areas of skill gaps and identifying training needs for their employees
  • For benchmarking the jobs offered by the organization and ensuring that they are paying their employees fairly

Best Job Evaluation Methods of 2022

There are many reasons why an organization might need to conduct a job evaluation. For example, perhaps the organization is considering a change in its pay structure and needs to determine which jobs deserve higher salaries. Or maybe the company wants to create a more equitable pay system by ensuring that all jobs within the organization are fairly compensated. 

Regardless of the reason, conducting a job evaluation is a complex process. Many different job evaluation methods can be used, and each has its own advantages and disadvantages. The best method for a particular organization will depend on the specific goals that it is trying to achieve.

Job Evaluation Methods
Best Job Evaluation Methods in 2022 1

Let us brief some of the best job evaluation methods in 2022: 

1. Ranking System

The ranking system job evaluation method is a systematic way of assessing the relative worth of jobs within an organization. It is based on the principle that each job can be assigned a rank, from lowest to highest, based on its value to the organization.

The ranking system job evaluation method uses a point rating scale to measure the worth of each job. Points are awarded for factors such as skill level, responsibility, and working conditions. The points are then totaled to give a final score for each job. The jobs with the highest scores are ranked at the top, and those with the lowest scores are at the bottom. 

The ranking system job evaluation method has several advantages such as-

  • easy to use and understand 
  • provides a clear ranking of jobs from lowest to highest
  • compare different jobs within an organization and those in other organizations

The ranking system job evaluation method has some limitations, however. For example, it does not consider the level of skill required to perform a job or the amount of training and experience needed. It also does not consider the working conditions or the amount of responsibility involved in a job.

2. Job Classification or Grading Method

A job classification method is a way of grouping jobs together based on their similarities and assigning a value to each job in a classification system. This value reflects the relative importance of the job within the organization.

For example, all clerical jobs might be classified as “office support,” while all technical jobs might be classified as “technical support.” This system is often used in unionized environments where different pay rates are established for each job classification.

There are many advantages of using the grading system of job evaluation such as-

  • provides a way to measure the value of a job
  • helps employers determine how much they should pay employees for specific jobs

The disadvantages of using the grading system of job evaluation are: – It can be time-consuming and expensive to implement. In addition, there is always the possibility that the rankings will be inaccurate, and it is not always possible to find a job that matches the ranking assigned to it.

3. Points Rating System

The point rating system of job evaluation assigns points to each job according to its relative value in the organization. Positions are then compared and ranked according to their total point scores. 

The point rating system is one of the most commonly used job evaluation methods. It is relatively simple to use and understand, and it can be applied to a wide range of jobs. Jobs are then compared and ranked according to their total point scores. 

The point rating system can be subjective. Assigning points to a job can be arbitrary, and different evaluators may assign different values to the same position. In addition, the method does not consider factors such as skill level or complexity, so more complex jobs may receive lower rankings than less complicated or skilled jobs.

4. Factor Comparison System

Flanders developed the factor comparison method. It involves creating a list of job evaluation factors based on their importance when evaluating the position. Factors that play a significant role in the job duties are assigned a higher weight, while elements that have little influence on the job position are assigned lower weights. 

The point factor method is similar to the ranking method when evaluating positions. However, both ways do not consider how much weight should be assigned to each factor when determining which grouping they belong to. 

The factor comparison method has several advantages over other job evaluation methods. It is simple to employ, does not require complicated formulas, and considers the entire range of factors in a position’s duties. In addition, it allows for variations in job responsibilities because all aspects are considered, which helps keep employees satisfied with their compensation.

Disadvantages of the factor comparison method include that it may not accurately reflect a job’s worth. It can create disparities in compensation with peers.

Wrapping Up

From recruitment to upskilling to the exit of an employee, every organization performs various tests and analyses to determine the relative worth of employees, improve their performance, ensure their productivity, support their mental wellness, and much more.

Job evaluation is one such process to create an industry standard for measuring. It is the value of a person’s work. It has become more important in recent years since globalization has increased competition among businesses, and the highly qualified workforce demands better pay and benefits.

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Tarulika Jain

Hi.. I am Tarulika Jain. I work as a content writer in HROne. I am an Electrical Engineer by degree, and a pragmatic writer by profession. I bring you insights about Human Resource Management and how digitalisation can make your workplaces happier. When I’m not writing, researching and reading, I walk around the woods, sip my coffee and listen to Indie Music.

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