You may be surprised to learn that there are different types of job evaluation scheme (and there are numerous different providers), each with its own approach and methodology. Some are paper based, some are on-line/portal led, some are simple, some are complex.

The choice of scheme you will prefer will depend on the needs, size, complexity, and the level of detail required for your organisation.

Common types of job evaluation scheme we regularly encounter include:

1.     Points Factor Method: This method is probably the most detailed approach. It breaks down jobs into various factors, such as skills, responsibilities, working conditions, decisions, influence and effort. Each factor is assigned a certain number of points, and the total points for a job determine its overall value. This method allows for a more granular evaluation of job differences. This is generally recognised as being the most consistent, objective, and therefore robust methodology.

2.     Classification or Grading Method: This method involves grouping jobs into predefined grades or classes based on factors such as skills/capabilities, responsibilities, and complexity.  This is commonly adopted in organisations who prefer a less detailed methodology. That said, this approach is probably more structured/objective than the ranking method below.

3.     Ranking Method: In the ranking method, jobs are listed in order of their importance or value to the organization. Jobs are compared based on overall worth, and ranked from highest to lowest. This approach is relatively simple and quick but may not provide a precise measurement of job differences and may be perceived to be quite subjective, especially if specific skills are considered disproportionately more valuable.

4.     Paired Comparison: This approach is a variation of the ranking method where evaluators compare jobs in pairs and determine which job is more important. In more sophisticated schemes a points system can be used to assign scores based on the number of times each job is chosen as more critical, resulting in a final ranking. However, this is another methodology that is often accused of being too subjective. 

There are other methods of course and they are often a based on a combination of the approaches above.

Most businesses start out using some form of informal paired comparison or ranking method. It’s often not a conscious decision, just the most pragmatic approach when a business starts growing needs to bring in more roles, and build a hierarchy.

Each job evaluation scheme has its advantages and limitations, and you should choose a scheme that aligns best with your needs and resources. The goal is to implement a fair and consistent system to determine the relative worth of different jobs within your organisation. My next blog will focus on what you will need to consider when choosing a scheme. In the meantime, if you want to know more, get in touch.

If you already have a scheme I would be interested to hear about your favourite approach; especially if you are using a bespoke or in-house designed scheme. What made you decide to do that?