According to Employment Services.gov, "The aim of job evaluation is to provide a systematic and consistent approach to defining the relative worth of jobs within a workplace, single plant or multiple site organisation." This process is designed to make companies more efficient and increase the worth of the individual employee, because tasks are often consolidated into fewer positions. Still, there are also several disadvantages worth considering before performing a comprehensive job evaluation.
As a company grows, it often changes the way it does business, and this alters many of the internal processes of the organisation. While new jobs are often created as a result, many jobs are also made redundant, either being overlapped by other employees or automated by computers and machinery. Job evaluations are performed occasionally and serve to shed light on positions that may be redundant. While this sometimes means layoffs, many companies retrain their employees to work in new or related positions. Either way, the advantage to the company is a decrease in non-essential or overlapping personnel, which translates into savings.
Job evaluations usually involve analysts who observe the workplace in addition to reviewing statistics and procedures. Even when unannounced, these analysts can create a panic in some workers. The resulting impact can range from mild to catastrophic and can include lower productivity, cause widespread worry about job security and bring about an increase in the number of mistakes and even outbursts of anger and frustration from the staff. This can be moderated through subterfuge but is better handled by being up front with the staff and explaining that no one is being targeted for lay off or dismissal.
Advantage: Pay Restructuring
As jobs change and inflation rates cause raises in minimum wage, the pay structure of an organisation can become skewed toward those with more time in the company. Situations in which lead phone reps make more money than their managers or arc welders make only a few cents more than entry level employees can discourage employees from excelling at their position. Job evaluations help to keep pay rates in check and restore the incentive to work within the system to achieve more. While occasionally this means pay cuts or the relieving of long-term employees to hire fresh employees on a lower pay scale, more often it means giving raises and bonuses to upper-level staff and raising the bar for achievement in order to get a raise.
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