A job evaluation is the process whereby the relative worth of positions within the organization is established. The job description is the basis for a job evaluation. The result consists of assigning jobs to salary ranges. It is important to remember that job evaluation is a measurement of the internal relativity of the position and not the incumbent in the position. This analysis can also contribute to effective job design by establishing the organizational context and value of the job, and to hiring and promotion processes by providing job analysis on skill and competencies required to successfully meet job requirements. The job evaluation methodology used to establish relative worth is a market pricing and slotting approach that focuses on the following components:
External Value: HRS reviews and analyzes published competitive salary survey information, which has been gathered and prepared by internationally recognized consulting firms. The analysis takes into consideration strength of job match, company size, industry, geography, and ownership.
Internal Value: HRS reviews and analyzes the job documentation to determine the position scope, complexity, and potential impact to the University as well as specific factors such as skill, effort, responsibility and working conditions required to successfully perform the job.
When establishing the worth of a position, issues of internal equity are considered. Internal equity is defined as fairness in the relationship of a job’s salary range when compared with the salary ranges of similar jobs within the organization. The salary range for a job is considered internally equitable if the salary is commensurate with responsibility level of the position. The salary range represents fair wage rates for the job compared to similar positions at the University.
Directors/Managers should not use an incumbent's base salary as a guide to slot a new position into a range. HRS must determine the range assignment through the evaluation process.