job evaluation explained.
Since mankind began exchanging money for goods and services, businesses and their staff have been negotiating the price of work. For the purposes of fair pay, organisations would ‘evaluate’ the jobs performed within them to determine their value to the organisation.
By considering a job’s cognitive and physical requirements, as well as working conditions and responsibilities, businesses were historically able to assess the worth of a specific role.
It became clear in the early 20th century that a system of job evaluation could bring far more benefits than just fair pay. It could boost efficiency, improve recruitment and provide a strong foundation for operations.
In the years ahead, two methods of job evaluation - analytical and non-analytical – became prominent. Levelling systems in collective labour agreements and for compensation surveys are often non-analytical and strongly linked to the price of labour, whereas analytical job grading schemes have a stronger focus to determine the internal relativities within an organisation.
Methods of Job Evaluation
The following methods assess the overall jobs’ requirements. The grading decision is made by assessing the job in direct comparison with other jobs by making a discretionary decision.
The simplest form of job evaluation. A whole-job, job-to-job comparison which results in an internal job value hierarchy from highest to lowest. Ranking is very uncommon nowadays and is widely considered to be unreliable and biased. It would not stand up in court in a trial for equal pay.
A qualitative form of job content evaluation that compares jobs to predefined class descriptions established for each job level. Jobs are placed in whichever classification best describes them. This approach is most common in compensation surveys and collective labor or shop agreements.
A quantitative form of job evaluation that uses defined factors and levels within each factor. Job requirements are compared to the definitions of the factor levels, with corresponding points assigned to the appropriate level awarded to the job and added for all factors to determine the total job score. The total job scores are used to create a job hierarchy by using either the original points (job ranking) or a translation into a grade structure (job grading). A prominent example for a job ranking method is the International Labor Organization’s Scheme of Geneva from 1950.
Purpose of Job Evaluation
Internal Job Evaluation:
- ensures internal pay equity & defense against equal pay claims,
- builds & maintains grade-based salary structures with pay bands
- supports a job architecture for process optimisation and digitalisation
- determines & manage job-specific competencies
- supports talent management with succession planning
This approach is not as common in the USA as it is in Europe.
(External) Market pricing:
Compensation benchmarking focuses entirely on determining external market prices for jobs found within the organisation.
- Under this method either the non-analytical approach of job classification or the analytical approach of a point factor system are used to determine the value of the job.
- Job content will be taken into account by matching the job against pre-defined disciplines, job families or benchmark functions. From this combination the market prices of a job will be derived.
- Additional factors may be taken into account to determine the labor market / peer group, such as region / locality of operations, company size and sector of operations.
The exclusive use of this approach is most common in the USA and much less common in Europe.
A combination of internal and external job evaluation:
This is where the internal values determine equal value of work and serve as a basis for the above mentioned use cases. Here, market rates are often used as an additional source of information to determine the height and spread of pay bands or the market going rates for specific jobs in a hiring process.
The gradar approach.
When it comes to job evaluation, the consulting industry has made the process increasingly vague and complex in recent years. And they almost always use proprietary systems that need the “secret knowledge” of their specialised staff.
We’ve introduced an easy-to-use, affordable software suitable for every business. Considering wider factors such as professional knowledge, specific responsibilities and interpersonal skills, we offer a progressive, transparent job evaluation service.
We designed the gradar system with our clients in mind. We are committed to providing a simple, standardised service with a number of user-inspired features which your business can operate independently.
We evaluate jobs across 25 grades in three different career paths; individual contractors, management roles and project management roles.
Management positions place their emphasis on disciplinary management of employees and organizational units, as well as budget responsibility. Their achievements are typically of an indirect nature through leadership, promotion, support and motivation, along with the functional use of the resources available to achieve their goals.
The core objective of project managers is delivery through coordination, personnel distribution, resource allocation and budget control in the context of time-limited, one-off projects.
Position holders contribute mainly through the application and development of specific skills. Employees add value either individually or as members of an organizational unit. The responsibility may extend from the execution of individual tasks of an unskilled worker to the technical management of a discipline as an expert. Disciplinary leadership does not belong to the core tasks.
job evaluation with gradar.
gradar provides consistent and objective results on all job levels. From unskilled workers to strategic experts, from project to people managers, it follows a strict requirements-based approach. One of gradar’s key characteristics is this qualitative approach to job evaluation. By providing clear factor definitions and distinctive verbal level descriptions, the evaluation process is easily understandable for everybody involved and provides a high level of objectivity.
The well-balanced choice of input, throughput and output-factors makes gradar the ideal tool to evaluate positions in organisations of all sizes and in all industry sectors.
Professional Knowledge and Experience
Thinking and Cognitive Requirements / Problem Solving
Project Responsibility and Leadership Span
Leadership Span and Guided Group of Employees
Processes and Complexity
Scope of Decisions
Project Size and Project Budget
Processes and Complexity
Scope of Decisions
And our three-step process has never been easier.
- Set up the job in the gradar system
- Evaluate the job based on its requirements
- Compare the results across job families and business units
Global Job Families
The 132 gradar global job families are a standard variable available to all users that allows for a translation of job evaluation results into benchmark surveys job codes and job-specific competencies of TMA’s competency library.Learn more about our global job families
Benchmark survey job matching
Our job matching module is a web-based translation matrix for converting the analytical job evaluation results into benchmark job matches from global and local salary surveys
gradar’s job matching module is a major timesaver for all compensation professionals as you can manage all your jobs and their matches to compensation surveys in our system.Learn more about our job matching module
Job evaluation and competencies
We translate our job grading results out-of-the-box into a level and job-family-specific selection of TMA competencies. The competency management module allows for a manual definition of job-specific competencies.
The competency editor allows to set up company specific models based on almost any variable available in the system. Such client-specific models between gradar results and TMA’S competency library can be developed and implemented with the help of QPM and gradar implementation partners.Learn more about our competency management
To ensure full compliance with local equal pay laws and pay equity acts, gradar provides an optional module for the evaluation of working conditions. This module can be customized and provides the data basis for fair and transparent allowance payment practises.
Built for a global audience
The system is available in 15+ languages at no extra cost, including English (UK & US), Arabic, Dutch, French, German, Russian, Spanish and Turkish. It’s been implemented in organizations across the globe.Explore full features
Static physical efforts
Dynamic physical efforts
Unilateral physical efforts/ forced posture
Skill requirements (fine motor skills / dexterity)
External influences: Heat, dirt, dust, cold (mechanical / physical)
External influences: Nuclear, biological, chemical (NBC)
pricing & feature overview
gradar is for every business.
We’re one of the most affordable job evaluation systems on the market.
All the fundamentals with minimal setup. Available after seven days trial of Evaluation Edition. Advanced features are not accessible.
The perfect solution for job evaluation and competency management in Small and medium-sized enterprises (SMEs).
$1,500 / yr
Everything needed to build and maintain a professional job architecture in a larger company.
Packed with enhanced features, such as a real-time cross comparison, custom job families, custom organizational units and enterprise-grade access management.