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¶ … Job Evaluation:
As evident in the works of many professionals and scholars, job evaluation is described as a way that helps in establishing a justified rank order of jobs. This process is considered as the starting point for developing the virtual variations of wage rates. In some cases, job evaluation is considered as a systematic process that is geared towards developing pay variations among jobs within a single employer. In the past few years, several methods of job evaluation have been developed to help understand this process and make relatively easier to carry out. In addition to being used as a formal method for setting wage rates and pay scales by an employer, job evaluation methods are used for assessing the value links between jobs. Some of the most common methods of job evaluation include Lott's Point Method, Benge's Factor Comparison, and Multiple Regression method.
Benge's method of job evaluation is based on five compensable factors i.e. responsibility, mental requirements, working conditions, skill requirements, and physical requirements (Henderson, 2006, p.181). The method is based on these factors because they are most commonly used for creating base wage differences....
Notably, the compensable factors are described as particular job content features or requirements that are common to nearly every job. On the contrary, Lott Point Method proposed the use of fifteen compensable factors to determine various aspects of a job such as pay rates and content features. These factors are used to determine the value of jobs through ensuring that every factor has numeric or point values. Some of the fifteen compensable factors used in Lott Point Method include skill, responsibility, effort, and working conditions. Multiple Regression is a job evaluation method that is based on scientific investigation or empirical application instead of hypothesis and theory. As a result, this method is based on objectives and scientifically statistical processes to determine and evaluate compensable factors that generate fair reliable variable data such as pay or probable increase in payment for a job.
These job evaluation methods have some major similarities with regards to their use in determining pay differences between various jobs and use in a bias-free environment. One of the major similarities between the three job evaluation methods is that they use statistical processes…
References:
Henderson, R.I. (2006). Compensation management in a knowledge-based world (10th ed.).
Upper Saddle River, NJ: Prentice Hall.
"Position Evaluation is the Foundation of Pay Program Design." (2007). Exempt Pay Program
Design. Retrieved from The Evergreen State College website:
http://www.evergreen.edu/committee/exemptemployees/docs/Exempt%20Staff%20Pay_%20Job%20Evaluation%20System-2007.ppt
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