A recent advertisement for a consultant to conduct a job evaluation exercise read, in part: "The consultant is expected to gather information on all internal jobs, conduct situational analysis through (the) study of the current organizational structure, job families and groupings, grading structures and the current remuneration strategy … to determine the relative worth of each job in the organization and develop a comprehensive job grading structure."
The advertiser proceeded to outline the minimum requirements that the consultant was expected to meet. The fact that the requirements were, in my view, irrelevant to a knowledge-based consultancy, is not a point I wish to emphasize, or elaborate on. Rather, the fact that the advertisement was structurally flawed, and the likelihood that this might lead to results that could never be implemented, concerned me enough to send the following message to the advertiser:
I have read your tender notice … and my concern is that, as drawn, the tender is defective and you are unlikely to get results you desire from the consultancy you seek. I would be more than happy to do a free presentation to the team that is dealing with the tender. A 1 to 2 hrs. presentation would be adequate. This offer is without any obligation whatsoever.
The main purpose of a job evaluation exercise is to remove, or minimize, disparities in a compensation structure. Compensation, in this case, refers to payment for work performed. It is important to differentiate between compensation and remuneration with respect to job evaluation. Remuneration includes pay for work performed, plus all other benefits and allowances. Job evaluation focuses on the compensation structure.
A job evaluation exercise establishes the relative importance, or the relative worth, of jobs throughout the organization. It is a process of judgment in identifying and assessing differences between jobs. The process entails the determination of relative job weights, which are then applied to the compensation structure.
Before a job evaluation can take place, jobs must be thoroughly analyzed and understood. Written job descriptions provide the basic source of information about jobs. In practice, to achieve full understanding, this information will need to be amplified and discussed in a job evaluation committee created for conducting the exercise. The committee should be representative of the key stakeholders in the organization. It is also necessary that appropriate senior managers be ready to answer questions that may arise. In this respect, job evaluation is a demanding process in terms of time and resources, for the organization electing to conduct the exercise.
It is important to mention that, the responsibility to set pay levels lies with the organization, based on its ability to pay, considering the prevailing community pay levels. Job evaluation seeks to establish equity in a compensation structure.
A well conducted job evaluation exercise can be used for other organizational development purposes. These may include: training and development, promotions, transfers, job re-design, to mention just a few.
Finally, the selection of an appropriate job evaluation system, ultimately determines the success, or failure, of the job evaluation exercise. This should not be a problem where a qualified job analyst is identified to guide the exercise.
October 20, 2017
Website: www.od-internationalconsult.com
