HR Toolkit


HR Policies & Employment Legislation

Sample Policies on Common HR Topics

Job evaluation

Job evaluation is a process for assessing jobs to ensure equitable and defensible compensation structures. Job evaluation starts with a comprehensive analysis of the tasks, responsibilities, knowledge and skill requirements, and so forth. 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. While contributing to job design and staffing processes, it is important to reinforce that job evaluation is an evaluation of the position and not the incumbent in the position.

  • The job evaluation approach or system the organizations will use to evaluate all jobs
  • The process that will be used to evaluate jobs
  • The expected outcomes of job evaluation (in a unionized organization the policy and approach to job evaluation may be stipulated in the collective agreement)

 

Legal requirements for job evaluation

While establishing a job evaluation policy and procedure is not a legal requirement, job evaluation is an effective tool organizations use in meeting requirements of pay equity legislation. Furthermore, provincial human rights codes require employers to treat employees equitably and fairly, without discrimination. A comprehensive job evaluation policy and process can serve to both ensure, and demonstrate, objective and fair decision-making regarding compensation structures, staffing and promotion.

 

Job evaluation systems

There are a number of job evaluation approaches or systems that organizations can use to evaluate jobs. In order to ensure equity, transparency and process efficiency, organizations should choose one approach or system for job evaluation and apply it to all jobs in the organization.

Approaches or systems to job evaluation include:

  • Job content evaluation
  • Ranking
  • Classification
  • Factor comparison
  • Point factor method

In choosing an approach to job evaluation, organizations need to consider the costs associated with each method, the ability of the organization to access all the information required for the method, and the value derived from a simple versus a complex system.

It may be prudent to involve a job evaluation specialist in helping to determine the most appropriate method for your organization, and in the initial setting up of the job evaluation system.

 

Job evaluation process

Regardless of the approach or system used for job evaluation, the process for job evaluation should be clearly established and designed to ensure transparency and objectivity in job evaluation. The job evaluation process may include:

  • Training in the selected job evaluation system
  • Writing and updating job descriptions: job evaluation needs to be based on current up to date job descriptions
  • Identifying the relevant documents to be used in the evaluation process should be identified, collected and available at the time of the job evaluation; in addition to job descriptions, documents could include organization charts, benchmark or comparison job descriptions
  • Outlining the steps in the actual evaluation: these will be largely dictated by the job evaluation system or approach used by the organization
  • Identifying who conducts the job evaluation: the use of a job evaluation committee adds objectivity and transparency to the process; there are also specialists that will conduct job evaluation on behalf of the organization, but this is an expensive option beyond the funds of many voluntary sector organizations
  • Developing a employee appeal process

 

Outcomes of job evaluation

The job evaluation policy should identify the expected outcomes of the job evaluation process. Results of a job evaluation process can be used for:

  • Establishing a salary range for a new position
  • Creating of a position hierarchy in the organization
  • Salary increases and/or promotion of an employee in the position
  • Reclassifying the position to a higher or lower grade with or without a change in salary of the position incumbent
    Note: reducing an employee's salary can be considered constructive dismissal - an alternative is to red-circle (freeze) or green circle (limit increases to cost of living increases) an employee's base salary to accommodate a change in salary range
  • Confirming that positions are properly classified

 

Sample policies

Job Evaluation - National Organization (PDF - 48KB)

  • Lists the objective of job evaluation
  • Clearly identifies the roles and responsibilities for completing a job evaluation

Job Evaluation - Youth Organization (PDF - 29KB)

  • States the system that will be used for job evaluation
  • Lists the criteria that will be considered
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