HR MANAGEMENT - Example of a Company Job Evaluation System

Example of a Company Job Evaluation System

by Charlie Gaston, Demand Media

As a small business owner, you want to know which jobs are essential to the success of your business and which jobs can be eliminated or scaled back. There are a number of job evaluation systems, but the analytical job evaluation scheme is the most widely used method for job evaluation, according to HR.com, an online resource serving human resources professionals.

Objective

The objective of any job evaluation scheme is assessing jobs, not people. Further, job evaluation schemes help small business owners monitor and maintain high levels of employee productivity and employee satisfaction. For a job evaluation scheme to be effective, you must be diligent and make evaluations based on performance and productivity levels.

Definition

An analytical job evaluation is a method of evaluating a job using a points system in comparing one job with another, according to the HR Dictionary. The analytical job evaluation seeks to compare all jobs based on four or five major job elements, determining which job possesses the greatest importance to the overall company.

Factors

The analytical job evaluation involves identifying key elements -- also known as factors -- of a job, such as skill, mental and educational requirements, physical requirements and working conditions. You must rank each job under each factor and assign points based on the relative importance of each job. The analytical job evaluation scheme takes a less subjective stance, but it can explain why jobs are ranked differently in terms of importance. The use of points makes it easy for small business owners to evaluate a large number of jobs at once.

Advantages

Small business owners may favor the analytical job evaluation scheme for a number of reasons. The procedure of rating jobs is logical and relatively easy to accomplish. The scheme requires few factors and, thereby, reduces the likelihood of overlapping, which can occur with other job evaluation schemes. You can also assign a monetary value to jobs. By translating the value of a job into money, you can more easily decide which job can be eliminated during an economic downturn or recession.