CIPD Pres2

Job Evaluation
Old, Bold or a Story Untold
Marcus Downing
Hay Group
Content
1. What is Job Evaluation?
2. Job Evaluation Processes and Guidelines
3. Job Evaluation and Pay
4. Setting Reward Structures Using Job Evaluation
5. Job Evaluation and Salary Management
6. Job Evaluation Benefits
7. Job Evaluation Risks and Considerations

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 IS Not
 Comparative Absolute
 Judgemental Scientific
 Structured Unstructured
 Job Centred Person Focused
Possible Applications for Job Evaluation
Reward JOB EVALUATION Grading
Succession Career
Planning Development
Organisational
Link to Analysis Underpin
market the
data framework
Understand Identifying
relationships ‘gaps’ in Understanding
between the possible career
roles structure paths
Different Types of Evaluation Method
Method of Analysis Used

Method of
By considering By considering
Comparison Used
Job Elements the Entire Job
Comparing Job
Against Some Point Method Classification
Method
Scale
Comparing Job Factor Comparison Ranking

Method Method
Against Job
Hay is a Modified Factor Comparison Method

Job Ranking
Chelsea
Arsenal
Bolton
Total Rank
Arsenal X 3 3 6 1
Bolton 0 X 0 0 3
Chelsea 0 3 X 3 2
Job Ranking
Executive
Manager
Security
Chief
Total
HR
Rank
Chief
Executive X 3 3 6 1
HR
Manager 0 X 3 3 2
Security 0 0 X 0 3

Method of
Comparison Used
Comparing Job
Method
Scale

Method Method
Against Job

The Underlying Principle
1 2 3
To achieve this end Therefore, the job holder

Jobs exist to achieve result, job holders must requires a level of knowledge
an end result address problems, create, and experience commensurate
analyse and apply judgement with the scale and complexity
of the deliverables
Know-How
Problem Solving Problem Solving
Accountability Accountability Accountability

Elements of Sizing
TOTAL
KNOW-HOW + PROBLEM + ACCOUNTABILITY =
SOLVING SIZE
Depth & Range Freedom
of Thinking to Act
Know-How Environment
Nature of
Planning & Thinking Impact
Organising Challenge
Area of
Communicating &
Impact
Influencing
(Magnitude)

Method of
Comparison Used
Comparing Job
Method
Scale

Method Method
Against Job

LEVEL
8
7
6
5
3
2
1
4
1. Communication & relationship skills
60
45
21
12
5
32
2. Knowledge, training & experience
240
196
156
120
60
36
16
88
3. Analytical skills
60
27
15
6
42
4. Planning and organisation skills
60
27
15
6
42
5. Physical skills
60
27
15
42
6
6. Responsibility – Patient/client care
60
49
39
30
15
9
4
22
7. Responsibility – Policy and service
60
45
21
12
5
32
8. Responsibility – Financial and physical
60
45
21
12
5
32 9. Responsibility – Staff/HR leadership,
60
45
21
12
5
32
training
10. Responsibility – Information resources
60
46
34
16
9
4
24
11. Responsibility – R&D

60
45
21
12
5
32
12. Freedom to act

60
45
21
12
5
32
13. Physical effort

25
12
7
3
18
14. Mental effort

25
12
7
3
18
15. Emotional effort

18
11
5
25
16. Working conditions

25
12
7
3
18

Method of
Comparison Used
Comparing Job
Method
Scale

Method Method
Against Job

Job Classification
Slot jobs into grades by comparing whole job with a scale in the form
of a hierarchy of grade definitions
A Xxxxxxxx
B Xxxxxxxx
C Xxxxxxxx
D Xxxxxxxx
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)
Job Evaluation Processes
and Guidelines
Guidelines in Job Evaluation
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
Business
Input
Job
Information
Business
Information
Record of Apply
Judgement Conclusions
Reasons
Evaluation
Method
Review
Job Evaluation and Pay
The All–Time Enemy of Job Evaluation……..
Some factors influencing pay
Internal
Market relativity Profit
Share
Comparison
Dept.
Individual Performance
Performance Pay
Pay
“heritage”
Job size
Market Company
Performance
Positioning Length of
service
Setting Reward Structures Using JE
Setting Up Reward Structures for Base Pay
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
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
Job Family
Job Family Levels
Accountabilities Performance
Generic Level A • …………….
Criteria
• …………….
• …………….
Generic Level B • …………….
• …………….
Evaluation Scores Generic Level C • …………….
Knowledge & Skills
Generic Level D • …………….

• …………….
Generic Level E • …………….
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
Finance
Director
Financial Systems Mgr

Controller Tech Mgr
T, F, H&S Credit Control

Mgr Mgr Systems Analyst
IT Support
Asst Developer
Asst
T, F H&S
Asst
Finance
Admin
Finance
Asst
Finance & IT
Finance
Director

Controller Tech Mgr

IT Support
Asst Developer
Asst
T, F H&S
Asst
Finance
Admin
Finance
Asst
Finance & IT
Finance
Director

Controller Tech Mgr

IT Support
Asst Developer
Asst
T, F H&S
Asst
Finance
Admin
Finance
Asst
Using Job Evaluation For
Salary Management
40,000
30,000
%
Currently Paid (£)
20,000
10,000
0
0 500 1000 1500
Job Evaluation Rating (e.g. Hay Units)

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
[email protected]
http://www.haygroup.co.uk/Events/Events.asp

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Job Evaluation

Old, Bold or a Story Untold

1. What is Job Evaluation?

2. Job Evaluation Processes and Guidelines

3. Job Evaluation and Pay

4. Setting Reward Structures Using Job Evaluation

5. Job Evaluation and Salary Management

6. Job Evaluation Benefits

7. Job Evaluation Risks and Considerations

Reward JOB EVALUATION Grading

Method of Analysis Used

Comparing Job Factor Comparison Ranking

Hay is a Modified Factor Comparison Method

Method of Analysis Used

Comparing Job Factor Comparison Ranking

Hay is a Modified Factor Comparison Method

To achieve this end Therefore, the job holder

Problem Solving Problem Solving

Accountability Accountability Accountability

Method of Analysis Used

Comparing Job Factor Comparison Ranking

Hay is a Modified Factor Comparison Method

32 9. Responsibility – Staff/HR leadership,

10. Responsibility – Information resources

11. Responsibility – R&D

12. Freedom to act

13. Physical effort

14. Mental effort

15. Emotional effort

16. Working conditions

Method of Analysis Used

Comparing Job Factor Comparison Ranking

Hay is a Modified Factor Comparison Method

 A job family describes a number of roles which are engaged in

Generic Level D • …………….

JFM 1 JFM 2 JFM 3 JFM 4

Financial Systems Mgr

T, F, H&S Credit Control

Financial Systems Mgr

T, F, H&S Credit Control

Financial Systems Mgr

T, F, H&S Credit Control

Job Evaluation Rating (e.g. Hay Units)

 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

 Enables comparison of dissimilar jobs

 Enables benchmarking against jobs outside the organisation as

 Is able to reflect jobs as they change with time

 Help to improve recruitment and retention for targeted areas

 Provide clear development pathways for your employees

 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

 the need for and possible problems in getting union

 the need for and problems in getting wider business

 the need to have appeals processes which do provide a safety

 the critical nature of communications to success