Prof.

Anubha Dadhich, PhD- IIT Delhi

Course Instructor
• Job evaluations are a step-by-step process to determine how much money a
position should earn.

• Different methods of job evaluation, but the objective of each method is

determining the

• JE: To ensures the salary is equal to the work.

• Job evaluations are conducted rather than on the employee

who holds the position.

• This typically occurs when a company is

• There are two main types of internal job evaluations methods: qualitative and
quantitative.

• Qualitative methods, such as job ranking and classification, are faster.

• Quantitative methods, such as factor comparison and point factor, consider the
skills and responsibilities each role requires.

• There is also an external job evaluation method called market pricing.

• This method requires you to rank each role in a hierarchy based on the value they bring to the
company or how difficult the role's duties are.

• Job ranking is a good job evaluation method for smaller companies as it is simple and you can consider
up to 100 jobs.

• It is also a good method for reducing positions.

• One can pair when ranking them and choose to keep the one that has the
on the company.

• The job ranking method has limitations as it is so combining it with a quantitative method
can help make the results more accurate.
• The job classification method first requires you to or
to help you sort roles.

• For example, you could create the following four categories: executives, skilled
workers,semiskilled workers, and unskilled workers.

• Then, sort each role into a category, helping you determine the salary for each
position in that category.

• This method is also subjective and it can be hard to fit every unique role into a
category.
• Market pricing is an external job evaluation method.

• It requires you to determine a role's salary based on the amount

employees in the

• To determine the amount other companies are paying, you can look through third-party

• This allows you to create a for your employees.

• Market pricing overlooks internal equity.

• This means an employee may receive a lower salary than their colleagues or that their work
demands if the market rate for their role is low.

• To counteract this, combine market pricing with one of the internal job evaluation methods.
Market Benchmarking survey Links

• https://www.kornferry.com/capabilities/intelligence-cloud-hr-
platform/korn-ferry-pay/2023-salary-benchmarking-and-
compensation-
data?utm_source=google&utm_medium=ppc&utm_campaign=23-10-
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misc&utm_term=kf_pay_data_2023&utm_content=search&gad_sour
ce=1&gclid

• https://www.onetonline.org/
• With the point factor method, you evaluate jobs by assigning each role points and then rank them.

• Start by developing a detailed point system.

• For example, a position requires , or each job responsibility could be a

point.

• Once you have your point system, you can go through each role and assign it a total number of
points.

• Then, from the highest number of points to the lowest to help you determine their
salaries.
• The factor comparison method is a combination of the

• Start by ranking each job based on certain factors, such as the number of skills each role requires
or the knowledge candidates need to have.

• Then, assign these points.

• The total number of points each role has determines the job's ranking.
• What is our budget for this process?
• How long will it take?
• Who participates and what are their roles?
• What method of job evaluation are we using?
• What roles are we evaluating?
• How will we collect data?
• What is our communication plan (i.e. will we meet every week or update each other via email)?
• The next phase consists of designing and developing your job evaluation plan.

• One need to determine the for how you're going to evaluate each role.

• For example, if you used the point method, you can create your point system in this design and
development stage.

• You can also collect and analyze data about the roles you're discussing, such as their job
descriptions or market pay.
• Using the results from the research and analysis in the second stage, one can categorize jobs, rank
them, and

• This step may take the longest as you have to until

you're happy with the list.

• If you have jobs that are a or benchmarks, you may need to

discuss them with your team separately to determine a ranking for them.
• Once you have a pay structure you're happy with, you can implement it.

• If you have existing employees whose pay structure changed, you need to communicate those
changes with them.

• You can do this by preparing individual letters, scheduling individual meetings, or even scheduling
a team briefing to discuss the job evaluation you performed.

• Some employees may be unhappy with the changes, so it's important you listen to their concerns.

• Offer them an opportunity to appeal your decision to show that you want to make the company's
pay structure as fair as possible.
• To perform a job evaluation, complete a job analysis first. is the process of creating a
job description.

• You do this by determining what roles and responsibilities a position holds and the skills and
experience a candidate needs.

• For example, if you're creating a cashier role at your store, you need to determine aspects of the
role, such as whether candidates should have a high school diploma or higher education.

requires this information to determine the amount an employee should earn for
meeting the position's requirements and fulfilling their roles and responsibilities.
• There are a number of times you or your company may want to perform a job evaluation.

• One of the most common times is when a company is new and establishes the roles in the company.

• Similarly, when a company creates a new role, you need to perform a job evaluation.

• In this scenario, the job evaluation is typically a shorter process, as it is only for one role.

• Another good time to perform a job evaluation is when a position's description or responsibilities change.

• For example, if you require your software engineers to learn a new coding language, you need to reevaluate
their pay to match their new responsibilities.

• You may also have to reevaluate existing roles routinely, such as once a year or every other year. This
ensures all employees are consistently earning equitable pay.