Create a Job Worth Hierarchy
Prove the value of job evaluation by implementing an effective and efficient process that is aligned with organizational strategy.
- Many organizations do not conduct job evaluation due to the perception that it is too complex and time consuming to produce a return on investment (ROI).
- Instead, these organizations use a compensation-setting model that relies exclusively on market pricing – showing unjustified confidence in its reliability and an overreliance on external equity.
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Speak With An Analyst.
- Get on-demand project support
- Get advice, coaching, and insight at key project milestones
- Go through a Guided Implementation to help you get through your project
Our Advice
Critical Insight
- Job evaluation and market pricing need to be treated as complements to one another, not substitutes.
- A job worth hierarchy reflects the characteristics of an organization, is aligned to strategy, and is critical to determining internal equity, making job evaluation a key component of developing successful compensation programs.
Impact and Result
- Identify the best-fit method of job evaluation, customize the method to the organization, then conduct job evaluation to create a job worth hierarchy.
- Overcome the challenges of job evaluation by focusing on ensuring the process is strategically aligned, flexible, and as painless as possible.
- Use the job worth hierarchy to find the right balance between internal and external equity in order to allocate the compensation budget effectively.
Workshop: Create a Job Worth Hierarchy
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Assess Current State
The Purpose
- Discuss the organizational factors influencing compensation.
Key Benefits Achieved
- Organizational insights that will impact the approach to compensation.
Activities
Outputs
Identify and discuss compensation challenges.
Discuss internal and external factors influencing compensation.
- Compensation Philosophy Worksheet
Module 2: Craft the Compensation Philosophy
The Purpose
- Conduct a competitor analysis.
- Develop compensation principles.
- Determine target market positioning strategies.
Key Benefits Achieved
- Drafted compensation philosophy.
Activities
Outputs
Identify competitors for talent.
Uncover fundamental compensation principles.
Determine market positioning strategies and targets.
Draft the compensation philosophy.
- Compensation Philosophy Worksheet
- Compensation Philosophy Template
Module 3: Customize the Point Factor Tool
The Purpose
- Select and customize factors aligned with the organization’s context.
Key Benefits Achieved
- Customized and aligned point factor job evaluation tool.
Activities
Outputs
Select strategically aligned factors.
- Strategically aligned Point Factor Tool
Customize factor definitions and levels.
Module 4: Customize the Point Factor Tool
The Purpose
- Weight the factors and allocate points across factor levels.
- Test the tool for bias and accuracy.
Key Benefits Achieved
- Tested Point Factor Tool.
Activities
Outputs
Weight the factors.
Check for bias.
Allocate points to each level.
Test the tailored Point Factor Tool.
- Customized and tested Point Factor Tool
Module 5: Next Steps and Wrap-Up
The Purpose
- Ensure the point factor method is implemented and maintained effectively.
Key Benefits Achieved
- Created action plan to continue the job evaluation process.
Activities
Outputs
Review tool testing results.
Develop an action plan.
- Action plan
About McLean & Company
McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Need Extra Help?
Speak With An Analyst
Get the help you need in this 3-phase advisory process. You'll receive 5 touchpoints with our researchers, all included in your membership.
Guided Implementation 1: Prepare for job evaluation
- Call 1: Select the best-fit method of job evaluation, review the appropriate tool, and determine the approach to conduct job evaluation.
Guided Implementation 2: Perform job evaluation
- Call 1: Review customization of job evaluation tool.
- Call 2: Examine results of job evaluation.
Guided Implementation 3: Communicate and maintain job evaluation
- Call 1: Determine target level of transparency and develop a rollout plan.
- Call 2: Establish associated processes (e.g. maintenance, appeals).
Contributors
- Erin Berg, Senior Compensation Analyst, Mayo Clinic
- Joel De Los Santos, Compensation Expert, Bayer
- Kimberly Fleming, HR Specialist in Total Compensation & Job Evaluation, Trent University
- Samantha Harak, Manager of Compensation & Benefits, Goldcorp
- Josephine Lee, Manager of Compensation & Recognition, PwC Canada
- Rick Radulski, Compensation Professor, University of Calgary
- Mathew Sebastian, Human Resources Specialist in Compensation, University of Ontario Institute of Technology (UOIT)
- Toni Umerez, Manager of Total Compensation Services and HRIS, Sheridan College
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