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  • Essay / Factors of a Job Evaluation System - 2180

    Factors of a Job Evaluation System A job evaluation system is “a method of determining the value of each job relative to all jobs within the organization. A job evaluation process is useful because sometimes job titles can be misleading - either unclear or unspecific - and in large organizations it is impossible for human resources managers to know each position in detail. The use of job evaluation techniques depends on individual circumstances. Job evaluation is often used to: establish the relative value or size of jobs or roles, provide as objective a basis as possible for placing jobs or roles within a grade structure, ensure that consistency of decisions will be made regarding the classification of jobs or roles and certifying that the organization meets the legal and ethical requirements of equal pay for work of equal value and the legal and ethical requirements of non-discrimination based on race, disability, sexual orientation or religion. Companies should evaluate whether certain tradeoffs are necessary and use a job evaluation method to provide an objective standard from which changes can be made. Job evaluation programs have different objectives. First, although there are different job evaluation systems that can be chosen, analytical or non-analytic, a job evaluation system must be analytical so that gender discrimination is not a problem. In its Good Practice Guide on Gender-Free Job Evaluation Systems, the Equal Opportunity Commission (EOC) states that: “Non-discriminatory job evaluation should lead to a transparent pay system and "Second, a job evaluation system must be objective. This suggests that the value of the employee's salary should be based on the work performed and not on the job title Third, the organization implementing the job evaluation program must benchmark itself against other competitors in the industry to ensure that its employees are treated and compensated equally. Consideration when implementing a job evaluation program is cost. A company has different options when choosing an evaluation system, whether analytical or non-analytical. Obviously, one of the least expensive methods would be for the organization to design its own job evaluation system. However, other companies may choose to purchase a package describing how to implement a job evaluation system..