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How to promote fairness and transparency through Job Evaluation

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Posted by Spencer Hughes on 06 May 2021

How to promote fairness and transparency through Job Evaluation

Pay Fairness | Job evaluation | Transparency

Correctly executing and implementing Job Evaluation is vital in ensuring jobs of equal value receive equal reward across your organisation. At its core, Job Evaluation is a systematic method of determining the relative value of a job, enabling comparison to other jobs across your organisation. Although Job Evaluation exists in many variations, the fundamental methods are Classification, Ranking and Factor Comparison (or Point Method).

Fairness
In the context of Job Evaluation, fairness refers to making sure jobs of equal value receive equal reward. This can be achieved by the development of a Pay Structure you can have confidence in due to the fact it directly links to your robust Job Evaluation methodology. Whether you use Classification, Ranking or Factor Comparison, the alignment to a single methodology makes the daunting task of Pay Structure development much simpler.

Much in the same way Job Evaluation exists in many variations, so do Pay Structures. Whether bespoke or ‘off the shelf’, the four underlying frameworks behind a Pay Structure are Individual Ranges, Banding, Pay Spine Points or Job Families. The ideal Pay Structure will vary based on organisation-specific variables, such as Industry and Growth Plan.

When undergoing any organisational change, especially change that impacts the entire workforce (such as Job Evaluation or creating a Pay Structure), communication is key. Involve all relevant stakeholders and make sure your guiding principles are clear before you set out to make change. Any fundamental Job Evaluation method can help development of a Pay Structure using any of the underlying frameworks. All combinations can promote a fair system in which work of equal value receives equal reward. It is important to make sure employees across the business understand the systems in place; you must have a level of transparency aligned to your goals.

Transparency
The process of Job Evaluation aims to remove all subjectivity. By applying a logical and consistent methodology, you gain the ability to make transparent decisions. With each role having undergone the same evaluation process, by any of the three fundamental methods, transparency can be achieved by enabling both managers and employees to have open conversations and understand the decision-making process. 

 With Job Evaluation providing clarity for employees regarding their position within the organisation it gives an understanding of how they fit into the bigger picture. Career progression that could have gone unnoticed without Job Evaluation in place is now made clear, and a career pathway can be established. This benefits both the individual and the organisation; development programmes and means of training can now be better implemented with a clear structure to follow. A clear view across the organisation of equal working value also enables renumeration and benefits to be aligned across the organisation; transparency and fairness working hand in hand.

Transparency is not only important for an internal audience but also an external one. If you can demonstrate clear career progression opportunities and show work of equal value receives equal reward, you will be a very appealing employer when recruiting. Perhaps even more importantly, if an external third party is ever required to investigate, such as investigating an Equal Pay claim, provided you have followed a robust Job Evaluation methodology and have clear evidence for pay decisions, you will have a sound defence.

Find out more about how Innecto can help with job evaluation – call us on 020 3457 0894 or email spencer.hughes@innecto.com 

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