Don’t wait for a grievance or equal pay claim to tell you that your pay and grading frameworks are not up to scratch. These are, some tell-tale signs that it might be an opportune time to undertake a job evaluation.
What is a job evaluation?
A job evaluation is an analysis of the various jobs performed in a company that systematically determines the relative importance of each. The goal of the evaluation is to have a uniform, fair and objective method for evaluating pay and performance. While defining job roles and pay rates sounds simple enough, for many medium to large-sized companies, this process can actually be incredibly complex and time-consuming. That’s why HR departments often look to expert consultants to provide an outside, objective view and do the leg work to create a compliant, analytical scheme.
However, given the increasing number of fines and legal action over equal pay issues, if any of these situations sound familiar, it may be time to undertake a job evaluation scheme:
Recent organisational changes
Is your organisation growing quickly? Did it recently undergo a merger or acquisition? Then it may be prudent to review job roles and pay grades to ensure consistency and rational remains throughout the business.
Too many job roles and grades
Is there a unique job title and grade for seemingly every individual at a company? That’s a recipe for disaster when it comes to justifying pay and rewards. Providing some harmonisation across the company – and ensuring your scheme is in line with industry standards – is crucial to employment law compliance.
Can you systematically demonstrate that individuals receive the same rate for the same work? If you can’t or you’re unsure, then that should be red flag that action may be needed. With a rising trend in equal pay claims, organisations with the most robust documentation of job roles and rates based on analytical measurements and determinations will be best positioned to fight these claims.
Employee dissatisfaction and retention issues
Do you have a challenge recruiting and retaining employees for certain job roles due to pay? Or have employees raised issues about compensation. A job evaluation can ensure transparency and provide rationale for employees as well as providing HR with effective tools and validation during hiring and reward negotiations.
Confusion over responsibilities and training
Have the day-to-day realities of job roles evolved, but formal job titles and descriptions not changed to match? Are managers unclear about the training required for those on their team? This uncertainty may be systematic of unclear job descriptions, responsibilities and career paths. A job evaluation can help address these issues. Companies without job evaluation scheme risk a great deal, including employee dissatisfaction, turnover and even equal pay claims.
For an in-depth look at implementing a job evaluation scheme, watch our free webinar.