Total Rewards icon

Create a Job Worth Hierarchy

Prove the value of job evaluation by implementing an effective and efficient process that is aligned with organizational strategy.

Unlock This Blueprint
  • Many organizations do not conduct job evaluation due to the perception that it is too complex and time consuming to produce a return on investment (ROI).
  • Instead, these organizations use a compensation-setting model that relies exclusively on market pricing – showing unjustified confidence in its reliability and an overreliance on external equity.

Our Advice

Critical Insight

  • Job evaluation and market pricing need to be treated as complements to one another, not substitutes.
  • A job worth hierarchy reflects the characteristics of an organization, is aligned to strategy, and is critical to determining internal equity, making job evaluation a key component of developing successful compensation programs.

Impact and Result

  • Identify the best-fit method of job evaluation, customize the method to the organization, then conduct job evaluation to create a job worth hierarchy.
  • Overcome the challenges of job evaluation by focusing on ensuring the process is strategically aligned, flexible, and as painless as possible.
  • Use the job worth hierarchy to find the right balance between internal and external equity in order to allocate the compensation budget effectively.
Unlock This Blueprint

Create a Job Worth Hierarchy Research & Tools

1. Prepare for job evaluation

Select the best-fit method and determine the approach to job evaluation.

2. Perform job evaluation

Customize the job evaluation method, complete job evaluation, review the results, and document the process.

3. Communicate and maintain job evaluation

Determine the target level of transparency, obtain approval, and establish associated processes.

Unlock This Blueprint

Workshop: Create a Job Worth Hierarchy

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Assess Current State

The Purpose

  • Discuss the organizational factors influencing compensation.

Key Benefits Achieved

  • Organizational insights that will impact the approach to compensation.

Activities

Outputs

1.1

Identify and discuss compensation challenges.

1.2

Discuss internal and external factors influencing compensation.

  • Compensation Philosophy Worksheet

Module 2: Craft the Compensation Philosophy

The Purpose

  • Conduct a competitor analysis.
  • Develop compensation principles.
  • Determine target market positioning strategies.

Key Benefits Achieved

  • Drafted compensation philosophy.

Activities

Outputs

2.1

Identify competitors for talent.

2.2

Uncover fundamental compensation principles.

2.3

Determine market positioning strategies and targets.

2.4

Draft the compensation philosophy.

  • Compensation Philosophy Worksheet
  • Compensation Philosophy Template

Module 3: Customize the Point Factor Tool

The Purpose

  • Select and customize factors aligned with the organization’s context.

Key Benefits Achieved

  • Customized and aligned point factor job evaluation tool.

Activities

Outputs

3.1

Select strategically aligned factors.

  • Strategically aligned Point Factor Tool
3.2

Customize factor definitions and levels.

Module 4: Customize the Point Factor Tool

The Purpose

  • Weight the factors and allocate points across factor levels.
  • Test the tool for bias and accuracy.

Key Benefits Achieved

  • Tested Point Factor Tool.

Activities

Outputs

4.1

Weight the factors.

4.2

Check for bias.

4.3

Allocate points to each level.

4.4

Test the tailored Point Factor Tool.

  • Customized and tested Point Factor Tool

Module 5: Next Steps and Wrap-Up

The Purpose

  • Ensure the point factor method is implemented and maintained effectively.

Key Benefits Achieved

  • Created action plan to continue the job evaluation process.

Activities

Outputs

5.1

Review tool testing results.

5.2

Develop an action plan.

  • Action plan

About McLean & Company

McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Need Extra Help?
Speak With An Analyst

Get the help you need in this 3-phase advisory process. You'll receive 5 touchpoints with our researchers, all included in your membership.

Guided Implementation #1 - Prepare for job evaluation
  • Call #1 - Select the best-fit method of job evaluation, review the appropriate tool, and determine the approach to conduct job evaluation.

Guided Implementation #2 - Perform job evaluation
  • Call #1 - Review customization of job evaluation tool.
  • Call #2 - Examine results of job evaluation.

Guided Implementation #3 - Communicate and maintain job evaluation
  • Call #1 - Determine target level of transparency and develop a rollout plan.
  • Call #2 - Establish associated processes (e.g. maintenance, appeals).

Contributors

  • Erin Berg, Senior Compensation Analyst, Mayo Clinic
  • Joel De Los Santos, Compensation Expert, Bayer
  • Kimberly Fleming, HR Specialist in Total Compensation & Job Evaluation, Trent University
  • Samantha Harak, Manager of Compensation & Benefits, Goldcorp
  • Josephine Lee, Manager of Compensation & Recognition, PwC Canada
  • Rick Radulski, Compensation Professor, University of Calgary
  • Mathew Sebastian, Human Resources Specialist in Compensation, University of Ontario Institute of Technology (UOIT)
  • Toni Umerez, Manager of Total Compensation Services and HRIS, Sheridan College