A robust position evaluation process is critical to your HR success as it provides reliable, precise job leveling and a systematic method to assess the relative worth of every job within your company.

Position evaluation contributes to effective job design by establishing the organizational context and value of every role. Additional benefits include:

  • A better hiring and promotion process: Your evaluation provides a complete analysis of the skills and competencies required to successfully meet job requirements.
  • A consistent approach for determining pay levels: Fair compensation based on internal relative worth – or internal equity – is critical.

Position evaluations should be conducted for every new job and whenever a role changes substantially. This ensures that your organization is hiring the correct level based on expected tasks, qualifications and role responsibilities. Your goal is to identify whatever is required to ensure optimal performance and career progression.

Optimizing Evaluations for Hiring Purposes

There are a number of effective methods for conducting position evaluations. In order to ensure transparency and maximal efficiency, you should choose one and apply it to all the jobs within your company. Options include:

  • Whole job ranking: This is the simplest method. It employs job-to-job comparisons to rank positions in order from highest to lowest.
  • Job classification: This method groups similar positions into classes based on predefined specifications.
  • Point factor: This is the most widely used method. Job descriptions are compared to compensable factors, to which points are assigned. Then a total overall score and appropriate pay level are determined.
  • Factor comparison: Benchmark positions are identified and ranked based on compensable factors. The factors are then assigned monetary values based on current market rates. Pay for benchmark positions is set based on the total monetary value of the factors. Other jobs are then compared to the benchmark positions.

In choosing an approach, consider the ability of your organization to access all required information and the value delivered from each. Your staffing partner can help you make an informed decision.

Whether your philosophy is to compare roles within your company or against the broader sector or market, clearly established criteria allow for fair, consistent evaluation and compensation.

Who Should Do It?

Position evaluation may be conducted internally or externally. Either way, it’s imperative that evaluators maintain consistency and that their work is based on current, up-to-date job descriptions.

  • If you use a committee, ensure that all members are properly trained. Membership should consist of senior employees who thoroughly understand job functions. Their role is to evaluate the job, not the incumbent employee.
  • External specialists are another option. They offer less bias and more fairness, as well as extensive multi-industry experience.
  • Have the necessary tools and steps in place. In addition to company job descriptions, make all other relevant documentation accessible. This may include organizational charts or benchmark and comparison job descriptions. Outline how the approach will work and develop an employee appeals process.

Developing a successful position evaluation process can be daunting at first. Yet it will be well worth your investment in the right team, resources and tactics to make it work for your company. Consider partnering with the executive search consultants at BrainWorks to launch or fine-tune your approach. Contact us today to learn more.

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