The creation of a functional Job Evaluation Plan is one of the biggest steps an organization can take towards an effective, efficient, and equitable compensation structure. One of the greatest benefits of the emergence of the Human Resources profession has been the move towards logical, objective procedures and away from the "seat of the pants" approach that was common in the past. A Job Evaluation Plan, based on a weighted numerical "point-factor" system, allows even very different jobs to be accurately and objectively compared. This comparison can then be used to create a fair system of compensation, free from gender and racial discrimination, or other subjective influences.
Pay equity, or equal pay for equal work, is an important consideration in the current work world. It's important to the government and the various Pay Equity and Human Rights Commissions, it's important to your people, and by extension it is therefore important to you.
A Job Evaluation Plan is not only the best way to ensure you have achieved a reasonable system of pay equity, it's also the most effective way to prove your commitment to pay equity if you are ever challenged on the subject. A Job Evaluation Plan can pay major dividends in improved employee morale and engagement by increasing fairness and transparency.
Unfortunately, it is well beyond the scope of this article to explain in detail how to conduct a Job Evaluation Plan. These plans are normally created by veteran Human Resources specialists with decades of experience and training. It's a complex process and unless you've been down that road before, there are countless places you can easily make a costly wrong turn. While we can't begin to cover everything that needs to be considered in putting together an effective Job Evaluation Plan, we can give you a brief overview of how a Job Evaluation Plan is created, and what benefits it can bring to your organization.
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