This article explores the importance of incorporating market value considerations when assigning points for skill, effort, responsibility, and working conditions factors in job evaluation. By integrating these factors into the evaluation process, organizations can simultaneously establish equitable compensation structures that enhance recruitment success, employee satisfaction and engagement, while proving pay equity compliance.
In today’s competitive job market, many organizations are looking to find a fair and effective job evaluation methodology that will meet 3 significant compensation needs:
- Consistently determine the relative value of various roles within their organization.
- Align job evaluation results as closely as possible with marketplace realities. And,
- Implement a methodology that will objectively and efficiently meet the highest standards required to prove pay equity compliance.
Understanding Job Evaluation
Job evaluation is a systematic process used to assess and assign a relative value or worth to different roles within an organization. By evaluating job factors under the categories of Skill, Effort, Responsibility, and Working Conditions, organizations can establish internal job hierarchies and determine the relative value of each job.
Understanding Market Value with Job Evaluation
There are certain jobs recognized by the marketplace as demanding a compensation premium for their uniquely complex and/or specialized skills, uncommon efforts, distinctive responsibilities, and exceptional working conditions. To effectively blend marketplace realities with job evaluation, the methodology used to establish job compensation hierarchy needs to be sufficiently granular and detailed to isolate and separately identify each of these unique job characteristics. Only then can each of these characteristics be appropriately defined, weighted, and employed within a process to generate results recognizing market values.
Understanding Pay Equity Compliance
Organizations in a growing number of sectors are currently, or soon will be, required to have a pay equity plan in place. Within Canada for instance, all organizations in the public sector with more than 10 employees will be required to prove their compliance with pay equity legislation by the fall of 2024. Expectations are organizations will have measures in place to prove every (female dominant) job within their organization has been evaluated consistently and in accordance with the relative Skill, Effort, Responsibility and Working Conditions required of the work.
Very few job evaluation methodologies are capable of reflecting market values because there are relatively few factors measured, and the identified levels within each factor are generically defined. That lack of granularity makes it impossible to identify the unique characteristics of a job, and without the ability to isolate unique characteristics, they simply cannot generate job evaluation results reflecting market realities. Not only is that unfortunate, but the non-specific measures and generic job evaluation results give good reason to question the objectivity and thoroughness of the methodology employed.
The granularity of Encompassing Visions (ENCV) is unique in the field of job evaluation methodologies. Not only does it enable organizations the opportunity to recognize and value unique job characteristics important in their marketplace, but also those characteristics uniquely important to supporting the organizations culture and assuring its operational success.
ENCV’s measures of Skill, Effort, Responsibility, and Working Conditions not only have 85 detailed touch-points for identifying the unique characteristics of every job, but the survey provides organizations with the opportunity to specifically assign value to each of those distinctive touch-points.
As a proven pay equity compliant survey tool, only Encompassing Visions can provide organizations with a seamless process for melding market value with job evaluation results to support the assurance of equal pay for work of equal value.
By integrating market value considerations into our job evaluation methodology, organizations create an environment where employees feel valued, motivated, and rewarded for their contributions, resulting in increased productivity and organizational success.