Three reasons why job evaluation is more relevant than ever
From our perspective, it seems like job evaluation (JE) has never been more important – not only for tackling issues around pay and reward, but also supporting wider business aims.
It’s a tough job, but I’ve whittled it down to three reasons to keep the faith with JE.
1. Equal Pay claims
Three words which strike fear into the heart of any HR Director – Equal Pay claims have recently risen to greater prominence. High-profile employers like Tesco, Next and the BBC are facing claims from large numbers of female employees who assert their roles are underpaid compared to male-dominated roles rated as ‘like work’ or ‘work of equal value’.
If applied correctly, using a non-discriminatory analytical job evaluation scheme to evaluate roles across the organisation is an automatic defence against Equal Pay claims. Not having such a scheme in place can be extremely risky. For example, supermarket giant Tesco is facing the largest ever Equal Pay claim brought in the UK, with a potential bill for £4 billion. It’s possible that Tesco might struggle to prove their case. This is because, according to a case study report in e-reward, they’ve used job slotting – a non-analytical method of matching jobs – since the early 2000s instead of JE.
Using a consistent, objective JE system is essential for protecting your business against Equal Pay claims. Make sure it’s up to date and doesn’t perpetuate gender bias – there are still systems out there which over-emphasis working environment, for example, or use loaded language in their descriptors.
Many businesses seem to exist in the “never never” when it comes to Equal Pay claims, confident that it couldn’t happen to them. As recent examples have proved, now is not the time to be complacent. Today’s workforce is increasingly well-informed, mobilised and prepared to ask difficult questions about their pay. JE means you’ll have a good answer for them.
2. The transparency trend
In recent years we’ve noticed a definite spotlight on clarity, equality and openness. Legislation that allows employees greater access to the details of their own and colleagues’ pay has come thick and fast, from Gender Pay Gap Reporting to CEO pay ratios, and it seems BAME Pay Gap Reporting is also on the way.
Organisations need to reflect this development sooner rather than later, and be better prepared for evolving governance demands. Having a decent JE system in place means an organisation can further understand and evaluate its existing workforce in the context of new challenges and the wider business aims and goals, ensuring it is done in an equitable, fair and consistent manner.
3. Organisational design
“We want to double our turnover by 2020”, “this year our business goes fully digital”, “we’re expanding across the globe”, so saith the Board. But there’s no way to deliver high-level strategy goals without a detailed and accessible knowledge of your organisation’s people strength. Evaluating roles and fitting them into clearly-defined levels allows you to identify whether the right people are doing the right jobs to get you there.
Using JE for organisational design means you can focus in on changing role parameters, or identify where you’re missing key levels. For example, you may be aiming for high growth in a particular department or territory, but it’s doomed to fail if there’s a gap in the chain of command.
No job ever stands still, and keeping up to date with role responsibilities means you can deploy key talent where’s it most needed, and maximise the benefit to the business.
Those are my top three reasons to why JE isn’t going anywhere, but there’s plenty more to add.
Author is Alastair Cole, Reward Consultant at Innecto Reward Consulting.
This article was provided by Innecto Reward Consulting.
In partnership with Innecto Reward Consulting
We have more than 20 years' experience in getting employers' pay and reward working harder for them.
