Job evaluation
The Job evaluation feature within PayAnalytics enables users to implementJob evaluation frameworks that objectively compare jobs based on standard, consistent criteria. Job evaluation is a feature to support equal pay for work of equal value. It allows the user to create Job evaluation schemes and assign values to jobs (and when relevant, employee characteristics). These job evaluations can then be used with datasets and analysis.
This process is essential for ensuring equal pay for work of equal value across the organization. PayAnalytics offers a way to capture the result of a Job evaluation but does not in itself replace the process or project that is involved. When a dataset has been connected to a Job evaluation, that evaluation is automatically chosen when using the Value based comparison feature.
In this article, we will introduce you to Job evaluation by covering three main topics:
The relevance of job evaluation within pay equity
Job evaluation is closely tied to the principle of equal pay for work of equal value, a concept upheld by various pay equity laws and aimed at reducing pay disparities, particularly between men and women or between different racial and ethnic groups. It is a systematic process of assessing and comparing jobs within an organization based on certain factors, like skill, effort, responsibility, and working conditions. By using a structured Job evaluation process, organizations can assign value to jobs objectively, ensuring they pay based on the content and requirements of a role rather than subjective or discriminatory criteria.
Job evaluation and pay equity legislation
Pay equity laws require that jobs that may differ in nature but are of similar value to the organization (e.g., a nurse and a technician) should be compensated equally if the skill, effort, responsibility, and working conditions are similar.
In countries with robust pay equity legislation (e.g., the United States, Canada, and the European Union), laws mandate that employers must evaluate jobs in a way that addresses potential bias in compensation. This includes looking at traditionally male and female-dominated roles to ensure fair pay across all job types, for example, in Canada's Pay Equity Act.
The step-by-step process for effectively using the job elevation feature in PayAnalytics
From the navigation bar navigate to Admin > Job evaluation > Create a new job evaluation to get started with this feature. The Job evaluation page is illustrated in the following figure:
Job evaluation page
1. Select a method to create job evaluation criteria
To get started with the Job evaluation process, you’ll first need to create the Job evaluation factors (criteria) on which all job comparisons will be based. PayAnalytics provides three options to create these factors, as presented below:
Job evaluation factors section
Starting from scratch using a wizard - if you choose to create an evaluation scheme from scratch, the evaluation creation wizard leads you through it step by step. It provides a list of common factors and you can also define your own custom factors, making the Job evaluation scheme tailored to your organization. You start by choosing factor types and then choose evaluation factors for each factor type. For each factor, you can tailor the number of levels and associated points to your organization's needs.
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Using one of our built-in templates - PayAnalytics offers two pre-designed templates with common Job evaluation factors already populated.:
First template is comprehensive and covers a broad range of common evaluation factors. This template is well suited to perform a complete evaluation.
Second template is smaller and includes only a few evaluation factors. This template is a good starting point for those getting familiar with Job evaluations.
Templates can save time by providing criteria that can be modified as needed. This option is especially useful for organizations that want a quick start based on best practices.
Importing your own template - for organizations with established evaluation criteria stored in a spreadsheet format, importing an Excel file can save time and allow for seamless integration. PayAnalytics will map the data fields, making it easy to upload criteria that align with the organization’s existing evaluation structure. The Import instructions window is presented in the following figure:
Import instructions window
2. Define Job Evaluation Factors
Once you've selected your method for creating factors, refine the criteria based on your organization's unique requirements. Common criteria include:
Skill level - competencies and qualifications required.
Responsibility - the level of decision-making and accountability.
Effort - physical, mental, or emotional exertion required.
Working conditions - physical work environment, including potential hazards.
Independently of the method selected above, the process in PayAnalytics is similar and involves:
Factors - select them from our common factors list (responsibilities, skills, effort, etc.), add your own custom factors (optional), and set or customize the relative points for each factor, as illustrated in the following picture:
Factors section
Sub-factors - for each factor, select and assign sub-factors either from our common list or add your own custom sub-factors, again set or customize the number of levels for each sub-factor, as the following figure illustrates:
Sub-factors section
Levels - finally, customize the level names, assigned points, and add a description to enable an objective assignment to each job.
Once you have completed the above steps, your Job evaluation factors are ready.
3. Assign factors to jobs
After setting up your evaluation factors, you can begin rating each job using the Job evaluation feature. PayAnalytics uses a point-factor system where each sub-factor is rated on a scale (levels), with points assigned according to the level. Each job accumulates a score, allowing you to compare its relative value within the organization.
For example:
Skill Level - 1-5 points, with higher scores for more advanced skills.
Responsibility - 1-5 points, based on decision-making authority.
Now you have to add a list of jobs that need to be evaluated based on your Job evaluation scheme. PayAnalytics provides three options to create the jobs that need to be assigned:
Get jobs from a dataset - this option allows you to select an existing dataset that already has been imported into PayAnalytics. From the available data fields in the import, you can select the relevant job column (mandatory) and description column (optional). Examples of job columns might be “Job type”, “Job family” etc. This option is illustrated in the following figure:
Get jobs from dataset section
Upload job evaluations from an Excel file - you can upload an Excel sheet (.xlsx) with job evaluations. This file should include a column with job names and consecutively list the factors and levels in additional columns. Note that the contents of the cells (e.g. Level 1) must match the names of the levels as defined in the system. This option is illustrated in the following figure:
Upload job evaluations from Excel file section
Add jobs manually - finally, you can also add job names manually directly into the system and assign the relevant levels in PayAnalytics.
After completing this step, you need to assign relative levels for each of the selected sub-factors to each job in the list, and you will see how the Total points add up as the value points are defined for each criterion. The job points allow you to compare jobs of relatively equal value within your organization, even when the jobs are very different in nature.
4. Create employee evaluation and assigning value to employees
In addition to defining Job evaluation factors, you may also define employee evaluation factors (this is optional). To do this, click on the third tab Employee evaluation factors. These factors describe employee-related attributes that you wish to value in the compensation structure (e.g., education, experience or performance). Before creating any employee evaluation factors, you must specify the total points you wish to assign to such factors, that is the combined points for employee evaluation factors. The percentage share between employee-factors and job factors as the following figure illustrates:
Percentage share between employee-factors and job factors
The employee evaluation scheme is created with the same operations as a Job evaluation scheme, and we refer to that section for further instructions. We do not provide any template as these factors are fewer and depend on the company.
After creating an employee evaluation scheme, you can assign value to employees in the fourth tab Assign factors to employees. As the operations in this tab are identical to when assigning values to jobs, we refer to that section for further instructions.
5. Link a job evaluation to a dataset
When importing a dataset into the platform, you now have the option of linking your dataset to a Job evaluation in the Dataset Configuration page, as the following figure illustrates:
Linking Job evaluation
Select what Job evaluation scheme you would like to use, and then chose what column in your dataset includes the jobs you have evaluated. To learn more about uploading data, see Uploading your data article.
After saving the dataset settings, you are taken to the dataset overview page. In addition to the variables from your input data, the results table now includes columns related to the job evaluation as illustrated in the following picture:
Employee list
If your evaluation includes evaluation factors for employee attributes, PayAnalytics presents a column with the total points by default, but you may see the columns for both job points and employee points if you wish.
6. Incorporate job evaluation into your pay equity analysis
Once all jobs are evaluated in the Job Evaluation feature, you can use the PayAnalyticsValue-based comparison feature. For further information on how to conduct equal pay for work of equal value comparison, Value-based comparison feature see article.
You can now run a regression analysis based on the value points by selecting the Job points as numerical variables when running an analysis. Then the system will measure the impact on compensation for each additional value point. Note that when conducting a regression based on value points, you should only use Job evaluation points in the analysis. All other variables should have been incorporated into the value when creating the Job evaluation.
If you try to delete a Job evaluation that has been used in an analysis, you will be presented with a list of all the analyses that used the Job evaluation. To delete the Job evaluation you must first delete the corresponding analyses.