Job evaluation and building a pay structure
Step 1 / 4·Job evaluation values the ROLE, not the PERSON
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Learning objectives — after this module you will:
- Evaluate the relative value of roles using a point method
- Group roles into grades and design pay ranges
- Calculate and interpret compa-ratio
Job evaluation values the ROLE, not the PERSON
Understand the founding principle of every pay structure.
This is the most misunderstood principle in C&B: job evaluation measures the VALUE OF THE ROLE to the organisation, NOT the ability or performance of whoever sits in it. Two people in the same role sit in the same grade; differences in capability show up in their POSITION WITHIN THE RANGE, not in different grades.
Confusing the two has very real consequences: an excellent employee gets their role 'upgraded', and when they move on, that role now carries an illogical salary compared with equivalent roles.
Four common scoring factors
| Factor | What it assesses |
|---|---|
| Know-how | Knowledge, skills and experience needed to do the work |
| Problem solving / Complexity | Whether problems are routine or ambiguous, procedure-led or self-directed |
| Accountability | Scope of influence, budget/headcount managed, consequence of error |
| Working conditions | Specific environment, safety risk, intensity (where relevant) |
Key takeaway: Job evaluation values the ROLE; individual performance shows in position within the range, not the grade.