Employee Job Evaluation Policy
As a metric for evaluating the job itself, rather than employee, the job evaluation policy serves as a framework for assigning relative weight to each role within the company. It outlines job analysis specifications, explaining how to evaluate, who and when. It also includes a Point Factor Evaluation Table.
Created by
Naif O. Alawbathani
|
Human Resources Adviser
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What’s included in the job evaluation policy?
The job evaluation policy establishes a systematic framework for fair and competitive wage structures. It uses a point-factor method to evaluate jobs, assigning weights to specific factors. This ensures organized job classification and promotes both internal and external transparency.
The policy mandates a thorough job analysis process to determine each role's purpose, tasks, and required knowledge and skills. It also designates responsible parties for conducting evaluations, including representatives from all departments.
Regarding salary comparison, the salary benchmarking policy outlines a process involving data collection from reliable sources and comparison with similar market roles. It emphasizes aligning salary recommendations with the company's budget and strategy.
Furthermore, it clarifies how the results of this comparison process impact salaries, promotions, and professional development opportunities.
The policy also includes a Point Factor Evaluation Table that considers criteria such as knowledge and experience, problem-solving, responsibility, communication, leadership and supervision, and working conditions.
Employee Job Evaluation Policy - Table of contents
1. Overview
2. Objectives
3. Job Analysis Framework
4. Evaluation Methodology
5. Evaluation Governance
6. Evaluation Frequency
7. Salary Benchmarking Process
8. Benchmarking Report Requirements
9. Applying Benchmark Results
10. Market Positioning
11. Link to Other HR Policies
12. Legal Reference
13. Review and Update
14. Annex: Point Factor Evaluation Table
Why do you need a job evaluation policy?
Ensuring fairness in employee salaries, reflecting responsibilities and duties.
Managing salary expenses efficiently and economically.
Classifying new or changed job roles effectively.
Guaranteeing equal pay for jobs with similar skills, effort, and responsibilities.
How do you use the model?
Download the template and review the content.
Customize it with name, logo and the company's job structure and the market.
Share it with the Human Resources department and make reading it mandatory.
Ensure compliance by getting a job evaluation policy reviewed by a legal/HR expert.
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FAQ
How to do salary benchmarking?
Salary benchmarking involves five key steps:
Choose Data Sources: Select sources that align with your company's job descriptions, industry, and location, favoring accurate, often paid, aggregated data.
Categorize Positions: Clearly define and group your company's roles based on responsibilities, skills, and experience to ensure meaningful market comparisons.
Apply Compensation Strategy: Align your salary and benefits approach with overall company goals, determining your competitive stance for attracting talent.
Create Salary Ranges: Develop fixed salary ranges, data-driven by benchmarking, to predict costs, reduce inequities, and facilitate clear communication of pay criteria to employees.
What are the 4 methods of job evaluation?
The four common methods of job evaluation are:
Ranking Method / Paired Comparison: A qualitative method for small companies, creating a job hierarchy by comparing pairs based on perceived impact, resulting in a forced ranking.
Job Classification: A qualitative method that ranks jobs into pre-determined grade levels based on criteria like responsibility, skill, or seniority, common in many organizations.
Factor Comparison Method: A quantitative method that ranks jobs on various compensable factors (e.g., knowledge, decision-making), assigning points to each factor for direct comparison.
Point Factor Method: A widely used quantitative method assessing jobs(used in Job Evaluation Policy Template) based on required know-how, problem-solving, and accountability, assigning points to factors to determine job score and ranking.
What is an example of a job evaluation?
Job evaluation is the systematic process of assessing a job to determine its relative value within a company. For example, a company might use a point-factor method to evaluate roles. They would identify key factors like required skills, experience, education, complexity, and responsibility. Each factor is assigned points based on its level within a specific job. A marketing manager role, requiring advanced strategic thinking and greater responsibility, would accumulate more points than a customer service representative role, thus justifying a higher compensation rate. This ensures that pay reflects the job's contribution and demands, not just the individual performing it.
How to write a job evaluation?
To write a job evaluation, begin by analyzing and documenting the job content, detailing required knowledge, skills, effort, and how the role fits organizational objectives. Next, assess the job's value by evaluating elements like complexity and contribution to revenue, rather than the employee's qualities. Then, examine the requirements of each job, considering its inherent challenges. Choose a suitable job evaluation method (e.g., job ranking, point factor) based on organizational size, budget, timeline, and data accessibility. Finally, determine the basis for assessing each job role, selecting factors like education or experience that reflect the job's value and align with company preferences.
How often should you benchmark salaries?
Salary benchmarking should ideally be conducted at least annually for most companies. This regular review allows companies to remain competitive by aligning compensation with market changes, inflation, and evolving employee expectations. However, businesses experiencing rapid growth, operating in highly competitive industries with high talent demand, or undergoing significant restructuring (like mergers) may need to benchmark more frequently to effectively attract and retain talent.