Job Evaluation and Compensation Principles

Job Evaluation and Compensation Principles

Job evaluation is a process that is structured to evaluate job content.  The three major factors of job content that are found in all jobs are:-

• Results creations (Freedom to act)
• Problem solving (Freedom to think)
• Competency

All jobs create some end results and the job design prescribes different levels of freedom to act.  For example, the job of a cleaner is to follow strict routines prescribed.  The cleaner is not free to act in terms of changing the prescribed routines.  The job of a cleaner would be rated level 1 on the results creation chart.

The Job Evaluation Scales

Conduct of Job Evaluation

Job evaluation is always conducted by a trained panel.

Job evaluation must be conducted properly because the evaluation answers must be correct and they must be acceptable to all.

In our experience, a panel consisting of 3 or 4 members together with the HR manager acting as a secretary seems to produce good results.  The panel must always seek to establish accurate ratings based on consensus.

Determining Career Levels of Employees

The process of Job Evaluation produces job size. It is not a measure of the job holder’s capability. In compensation management where an organisation practices the principle of job rating – the salary range is attached to the job grade and this practice is in line with the principle of rate for the job.

In order to attract, retain and motivate professionals, organisations must communicate remuneration principles and processes in a rational manner. In an organisation that subscribes to the principle of “pay-for-capability”, the appropriate rate for the individual is determined by the level of capability (Career Level) of the employee.