Conducting job evaluations is a systematic way of determining the value of one job in relation to other jobs in the company, regardless of the characteristics or experience of the individual occupying the position.
The process involves the comparing of jobs against each other, to determine their worth for the purpose of establishing a fair and equitable pay structure.
With the changes in legislation, namely the Employment Equity Act (No. 55 of 1998), it has become necessary for employers to ensure that they are implementing equal pay for work of equal value, which means that employers are needing to substantiate that differences in remuneration are based on fair and equitable criteria such as skills, responsibility and experience.
Job grading allows employers to demonstrate the rationale for allocating different levels of remuneration.
The process of job evaluation or job grading involves determining the level of complexity, decision making, and skills required for each job, which can then be categorised.
There are many methodologies that have been developed over the years to assist employers in their job evaluation and grading process; If you would like some assistance in finding the right one, please give us a call.