The goal of job evaluation is to determine the extent a given job contributes to creating economic value at a given company. As a result, the management understands the weight and importance of a certain job within an organization.
This quantified value will, on the one hand, make it possible for us to compare the value creation capacity of jobs of the same name in different organizations (a bookkeeper at a small organization, who manages all the finances, accounting and labor processes alone does not represent the same value as another bookkeeper in an accounting office of 100 employees). On the other hand, we get a picture of the importance of the various jobs at the given organization.
Job evaluation helps us clear the hierarchical relationships of the different jobs within the company, provides the basis for a fair system of basic compensation, creates the basis to apply the “principle of equal pay for equal performance” and establish the fair compensation system. Thus it facilitates planning and analyzing the compensation structure of the organization.
MOST FREQUENTLY THIS QUESTION NEEDS TO BE ADDRESSED IF …
- … the goal is to establish or redesign the compensation systems.
- … the organization has admitted a large number of employees in a short time
- … it is necessary to harmonize the compensation structure of the organizations after acquisitions
- … everybody is dissatisfied with the compensation structure.
- … the labor costs are hard to plan.
RESULTS OF THE PROJECT:
- We create a basis for establishing a fair compensation system.
- The positions become easier to compare within the organization.
- Our wages become comparable with the market average/median.
- It becomes possible to plan wage development and we create the basis to establish wage development models for wage development alternatives.
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