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Create a Job Worth Hierarchy Based on Internal Worth

Select a best-fit job evaluation method to effectively assess the relative worth of positions in the organization.

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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

Your Challenge

Many organizations have moved to 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 worth hierarchies and market pricing should be treated as complements to one another, not substitutes.
  • When selecting a job evaluation method, err on the side of defensibility.
  • Job evaluation doesn’t need to be burdensome.
  • Establish a maintenance process to regularly verify that the job worth hierarchy is aligned to strategy, incorporating flexibility.

Impact and Result

  • Organizations need to find the right balance between internal and external equity in order to allocate scarce labor dollars effectively.
  • To accomplish this, organizations must first determine their internal job worth hierarchy via job evaluation.
  • This blueprint will help you bring job evaluation and job worth hierarchies into the 21st century: reduce the bureaucratic burden, ensure strategic alignment, and increase flexibility.

Research & Tools

2. Perform job evaluation

Complete the job evaluation, review the results, and document the process.

3. Communicate and maintain job evaluation

Set a target for organizational job worth transparency, get executive sign-off, and create an appeals process.

Guided Implementations

This guided implementation is a three call advisory process.

Guided Implementation #1 - Prepare for job evaluation

Call #1 - Call content includes project rationale, job evaluation method selection, and committee considerations.

Guided Implementation #2 - Perform job evaluation

Call #1 - Call content includes approach for selected job evaluation method, including required stakeholders, process information, and common pitfalls. (Note: more than one call may be required for members employing the point factor approach.)

Guided Implementation #3 - Communicate and maintain job evaluation

Call #1 - Call content includes target transparency, ongoing maintenance planning, and establishing an appeals process.

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Module 1: Align Point Factor Tool With Organizational Strategy

The Purpose

Select and customize factors to align with organizational strategy.

Key Benefits Achieved

Strategically aligned point factor tool.

Activities

Outputs

1.1

Determine key value criteria.

  • Key value criteria defined.
1.2

Select strategically aligned factors.

  • Strategically aligned factors selected.
1.3

Customize factor definitions and levels.

  • Factor definitions and levels are customized for the organization.

Module 2: Tailor the Point Factor Tool

The Purpose

  • Weigh the factors and allocate points across factor levels in order to customize the tool.
  • Test the tool for bias and accuracy.

Key Benefits Achieved

  • Customized and tested point factor tool. Completed evaluation of identified job family(ies).

Activities

Outputs

2.1

Weigh the factors.

  • Factors are weighed based on importance.
2.2

Check for bias.

  • Factor weightings are checked for bias.
2.3

Allocate points to each level.

  • Points are allocated across levels.
2.4

Test the tailored point factor tool.

  • Customized point factor tool is tested for bias and accuracy.
2.5

Evaluate selected job family(ies).

  • Job evaluation completed for selected job family(ies).

Module 3: Plan for Tool Implementation and Maintenance

The Purpose

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

Key Benefits Achieved

  • Transparency level determined for the job evaluation process.
  • Associated processes established (e.g. maintenance, job additions, appeals).
  • Action plan to continue the job evaluation process.

Activities

Outputs

3.1

Determine the transparency level of the job evaluation process.

  • Transparency of the job evaluation process determined.
3.2

Establish a maintenance process.

  • Job evaluation maintenance process established.
3.3

Determine how to add new jobs to the hierarchy and an appeals process.

  • Process for appeals and for adding new jobs to the hierarchy determined.
3.4

Develop an action plan.

  • Action plan developed.