Select and write about a job evaluation method, in 3-4 pages, using the company and job from the previous assessments.
Introduction
Along with the job analysis and job evaluation, companies must determine how they will structure their pay and which model is the most appropriate for their company. Companies also have to consider the competitive position of their pay policy. As an HR professional, it is important to understand the different pay structures, and the process of gathering and interpreting data to determine a competitive pay position. What does it mean to be competitive and pay a salary that is not only internally equitable, but is also externally effective at attracting and retaining the appropriate labor force for your business? This assessment challenges you to consider all the issues that go into that decision making.
Job evaluation is the process of comparing a job against other jobs within the organization to determine the appropriate pay rate. There are four primary methods of job evaluations used to set compensation levels: point factor, factor comparison, job ranking, and job classification. Historically, evaluations have mainly been internal comparisons of job worth; however, in recent years employers often prefer to use a combination of internal comparisons and external market benchmarking to obtain the most accurate data.
Instructions
In this assessment, select the most appropriate job evaluation method for the organization you identified in your first two assessments.
In a 3–4 page paper:
Analyze the advantages and disadvantages of each of the four job evaluation methods: point factor, factor comparison, job ranking, and job classification.
Describe how an employer would use external market benchmarking during the job evaluation process.
Analyze which job evaluation method would be the most effective for the same company you used as the focus in the previous assessments. Also consider whether you would use internal comparisons of job worth only, or you would use a combination of internal comparisons and external marketing. Justify your reasoning.
Additional Requirements
Your assessment should also meet the following requirements:
Written communication: Written communication is free of errors that detract from the overall message.
