Using Job Evaluation in Your Organization

JUDGING THE RESULTS

After you have created a job evaluation plan, top management should participate in approving the results and hierarchy of jobs. Organizational acceptance of the hierarchy of jobs is important to an organization’s success and to transparency of the compensation program.

Three things to consider for a job evaluation plan:

1. A job evaluation program should always include a:

   • Formal appeals process: A formal appeals process with management approval will ensure appropriate due diligence in the process. Organizations are wise to include such a process in their job evaluation system.
   • Employee surveys: When surveying employees, consider adding a question such as: "Is the internal hierarchy of jobs fair and equitable in the organization?"" This will help to identify employee satisfaction with the results of the job evaluation program.

2. Are the Results Reliable?

   Evaluating jobs requires a good deal of judgment. The reliability of the job evaluation results and hierarchy of the organization can be improved with:

   • top management support and approvals
   • carefully defined benchmark jobs
   • carefully selected, unbiased job evaluators
   • quality job descriptions
   • well-trained job evaluators
   • knowledge of jobs
   • consensus decisions by a job evaluation committee if used
   • use of a formal appeals process

3. What is the Cost?

   Job evaluation involves the costs of design, administration, and the increased labor costs of installation. Labor-cost effects vary for each installation. Design and administrative costs also vary with the type of plan, the time spent by organization members, and with consulting fees (if any).

Setting up a program has been estimated at 0.5% of payroll and administering it at 0.1% per year.