EQUITY IN ACTION: START BY ESTABLISHING EQUIVALENT WORTH
In the first blog of our equity series, we showed that equity emphasizes fairness, consistency, and transparency in compensation. Now, we shift our focus to the practical steps organizations can take to translate the discussion surrounding equity into tangible action.
Achieving equity in the workplace goes beyond good intentions and adhering to a set of principles. It hinges on establishing a clear, objective understanding of the equivalent worth of different jobs within your organization. This entails evaluating each role based on the purpose, responsibilities, and complexities inherent in the work. And that’s where the invaluable tool of job evaluation—a process for assessing and comparing jobs—comes in.
The foundation: Job evaluation
Job evaluation is a systematic process used to determine the equivalent worth of various jobs within an organization. It is the foundation for achieving equity. The process involves organizing and understanding the vast array of roles that make your company function, creating a clear picture of how they relate to each other.
Why does job evaluation matter so much? Because it plays an essential role in establishing a fair and equitable workplace:
- Fair compensation. Job evaluation helps ensure employees are paid fairly for the work they do, based on the complexity, purpose, and responsibilities of their roles.
- Clear career progression. Clear career progression hinges on defining job hierarchies and relationships through job evaluation, which is critical for determining the appropriate job level. This establishes a transparent framework for career progression. Staff can then understand how their current roles fit into the bigger picture and can tailor a roadmap for the steps they can take to grow within your organization.
- Equity and fairness. Job evaluation helps identify potential equity issues, such as pay disparities between similar roles. A fair and equitable workplace recognizes employees who contribute and deliver more to their jobs and the organization. Staff who contribute more through their growth in skills and knowledge, even if they are in the same job grade, can be recognized through higher pay within the range.
- Objective benchmarking. Job evaluation enables organizations to fairly compare their compensation program against the wider labor market.
The cornerstone: Establishing equivalent worth
Job evaluation isn’t simply about ranking jobs from “highest” to “lowest.” It’s about understanding the value different roles bring to fulfill your organization’s mission. It provides a common language to discuss the complexity and impact of various roles, fostering better understanding across departments and teams.
Moreover, job evaluation provides a structured and justifiable approach to determining and managing compensation, ensuring internal equity, helping your organization comply with pay equity laws, and showing a strong commitment to fair treatment for all employees.
Bringing clarity: Hierarchical relationships
Job evaluation establishes a hierarchy of roles within your organization, informing the creation of job grades and salary ranges. This is a critical step towards achieving equity, as it brings a structured approach to your compensation program.
Similar roles, based on their inherent value to the organization, are grouped together. These groups are then assigned specific pay ranges, ensuring that employees performing work of similar complexity receive comparable compensation, regardless of their occupation, tenure, or background.
A structured approach to compensation management fosters a sense of internal cohesion and transparency and promotes trust in the compensation program. Establishing hierarchical relationships helps staff understand how their pay is determined and relates to other roles in the organization, reducing the potential for misunderstandings and perceptions of inequity.
Birches Group’s job evaluation approach
At Birches Group, we understand that traditional job evaluation methods can be complex and time-consuming. That’s why we’ve developed a unique approach that considers only three factors:
- Purpose: Why does this job exist within the organization?
- Engagement: How does this job communicate and collaborate with internal and external stakeholders to carry out its function?
- Delivery: How does this job plan, organize, and deliver work to fulfill the organization’s mission?
Our approach is simple, consistent, and easy to understand. It focuses on the complexity and impact of the work itself, rather than just job titles or vague descriptions. This ensures a comprehensive and accurate assessment of job complexity, enabling you to make informed decisions about compensation.
The journey to equity continues
Job evaluation is the essential first step toward building a compensation structure that is fair, transparent, and competitive. Birches Group’s job evaluation approach provides a clear, unbiased path to establishing equivalent worth for every role within your organization.
In our upcoming blog post, we’ll explore the next critical step: building a grading structure that aligns with your job evaluation assessments and organizational needs. In the meantime, we invite you to schedule a call with our experts to discuss your job evaluation needs and challenges.
Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.
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