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Read the highlightsA job evaluation plan is a tool that helps your startup determine the internal value of a job in order to assign the appropriate salary level. The job evaluation plan defines the compensable factors used to assess the relativity of jobs within an organization. The job relativity can be aligned with the external worth of the same jobs by reviewing benchmark data (described in more detail below). Primary compensable factors of a job evaluation planThe point factor method is the most commonly used approach to job evaluation. This method identifies four primary compensable factors used to determine pay. These factors include:
Tailoring the compensable factors for your startupWhen identifying compensable factors, ensure that employees as well as management are part of the job evaluation process so that you gain their buy-in. To be useful in comparing jobs, compensable factors should possess the following attributes:
Creating a job evaluation planA job analysis describes a job. A job evaluation involves a means to compare jobs in terms of what the organization wants to “pay for” or to decide what is of value to them. Creating a job evaluation plan involves a number of steps:
Ontario pay equity legislation and job evaluation requirementsAll organizations in Ontario with 10 or more employees are responsible to ensure that they meet Ontario’s pay equity legislation, so it is necessary for even small companies in the province to have a job evaluation plan. Having a job evaluation plan will enable you to compare female and male jobs according to their job value, to ensure pay equity. Another method of job evaluation, market pricing, while easier to implement, does not meet Ontario’s Pay Equity Act requirements without the addition of an internal job-based valuation system. Getting started with job evaluations at your startupJob evaluation is often seen as a cumbersome, complicated and time-consuming process, especially for small companies without a human resources (HR) staff to support it. Employees may regard it as a “black box” that generates a mystifying salary rate. The good news is that with some guidance, the job evaluation process can be simplified and understood by executives and employees. If you are unsure where to start, create standard job descriptions for each employee that include the compensable factors mentioned above. This will act as the foundation for your job evaluation plan. It is highly recommended to seek the advice of an HR professional who has experience with job evaluation. Summary: By comparing different compensable factors, a job evaluation plan helps you assess the value of one job relative to another in order to assign the appropriate salary level; in Ontario, such a plan is required by law if you have 10 or more employees.Which system of job evaluation is being used when jobs are listed according to a series of predetermined wage grades?Job ranking is a simple method that provides a precise measure of each job's worth. HR professionals establish predetermined wage grades as a basis for evaluating jobs in the job classification system of job evaluation. The job classification system is commonly used by smaller employers.
Which system of job evaluation is being used when jobs are classified?The job classification system is a quantitative job evaluation procedure that determines a job's relative value by calculating the total points assigned to it. The job classification system is used commonly by smaller employers.
What is the term for the process used to determine the worth of a job?A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.
Which term refers to the systematic process of determining the relative worth of jobs in order to establish which should be paid more than others within an organization?A definition. Job evaluation is the systematic process of determining the relative value of different jobs in an organization. The goal of job evaluation is to compare jobs with each other in order to create a pay structure that is fair, equitable, and consistent for everyone.
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