As defined by ACAS (2014), ‘Job evaluation is a method of determining on a systematic basis the relative importance of a number of different jobs.’ ACAS also noted that, ‘A job evaluation scheme is a way of systematically assessing individual jobs objectively, while avoiding prejudice or discrimination.’
This book is largely about formal methods of comparing the value of jobs to assess their relative value to the organization (internal relativities). A distinction is made between formal job evaluation schemes such as point-factor rating, analytical matching and levelling, which are solely concerned with internal relativities, and market pricing, which is concerned with ensuring as far as possible that internal pay rates are competitive by comparing them with those in other organizations (external relativities). In its extreme form, market pricing is used alone without any attempt to assess internal relativities through a formal job evaluation system. In the United States, but not in this book, it is classified as a job evaluation process.
Although the focus is on formal job evaluation schemes it is recognized that evaluation takes place every time a decision is made on how much a job is worth on the basis of broad comparisons with other jobs internally or information on the rates paid for similar jobs by outside organizations (market rate comparisons). Such informal approaches are also considered in this book.
Formal job evaluation schemes attracted a lot of criticism in the 1980s and ’90s mainly on the grounds that they were rigid, bureaucratic, perpetuated unnecessarily extended hierarchies and ignored market rate considerations. Yet, as the Institute for Employment Studies (Brown et al, 2016) commented on the basis of extensive research: ‘Job evaluation seems to be alive and well in UK organizations.’ XpertHR’s 2013 job evaluation survey revealed that 71 per cent of UK organizations used a job evaluation scheme and 76 per cent of the respondents to the 2017 e-reward survey had one. But, as mentioned in the final chapter of this book on issues and trends, considerable changes have been taking place recently in approaches to job evaluation, with less reliance being placed on traditional point-factor schemes.
The book is divided into the following parts:
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Part 1 |
deals with the fundamental characteristics of job evaluation, its methodology, approaches to reviewing and introducing job evaluation schemes and the basic technique of job analysis. |
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Part 2 |
describes the three main formal job evaluation schemes: point-factor rating, matching and levelling. It also covers market pricing. |
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Part 3 |
is concerned with applications of job evaluation in the areas of grade and pay structure design. |
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Part 4 |
deals with the practice of job evaluation – maintaining job evaluation schemes and an analysis of issues and trends. |
References
ACAS (2014) Job Evaluation: Considerations and risk, London, ACAS
Brown, D, Bevan, S and Rickard, C (2016) A review of pay comparability methodologies, Institute for Employment Studies [Online] https://www.gov.uk/government/publications/a-review-of-pay-comparability-methodologies [accessed 1 May 2017]
e-reward (2017) Job Evaluation Survey, Stockport, e-reward
XpertHR (2013) How to select, devise, and use a job evaluation scheme [Online] http://www.xperthr.co.uk/how-to/how-to-select-devise-and-use-a-job-evaluation-scheme/155642 [accessed 28 September 2017]