Steps involved in job evaluation process are explained below
1. Identification of Jobs for Evaluation: The first step is the determination of jobs to be covered under the evaluation process. It is usually difficult for an organization to evaluate all the jobs of the organization. It,therefore,choose few key jobs which can represent a group of similar jobs for job evaluation purpose. Once the jobs are identified for evaluation, the next step is the determination of the factors to be evaluated in a job. The evaluator may evaluate one or more of the job factors like physical efforts, mental efforts, concentration, communication and leadership skills, education and experience, job complexity, and pressure.
2. Gathering the Relevant Data: The next phase of the job evaluation process is the collection of necessary information about the jobs being evaluated. For this, the evaluators may adopt data collection techniques like interviews, questionnaires, and observations etc.
3. Determination of Job Ranking: After analyzing all the information relating to the jobs, the evaluator assesses the extent of the presence of the chosen factors in the jobs. Based on the result of such an assessment, the evaluator determines the rating for each job. Since similar factors are assessed in an evaluation process, the ratings reflect the relative worth of a job in comparison to other jobs in the organization.
4. Selection of Benchmark Jobs: The primary purpose of job evaluation is the development of pay grades for each category of jobs. In this regard, it is necessary for an organization to know what the other organizations are paying for similar jobs. However, it may not be feasible for an organization to ascertain the comparative pay scales of all the jobs in the organization. Due to this reason, the evaluators may select a few jobs which are normally found in every organization and are comparable in nature. These jobs are usually called benchmark jobs and serve as yardsticks for determining the pay scale of all other jobs in the organizations.
5. Wage and Salary Surveys: In this stage, an organization conducts a survey of pay scales of the benchmark jobs in other organizations in the industry. Salary surveys may be conducted by an organization in a formal or informal way. Similarly, an organization may either conduct a direct a direct survey to gather relevant information or use the published reports of professional agencies or magazines. Based on such survey, the monetary value of each job is determined. Many organizations often use informal sources like telephones, newspapers, and the internet for conducting salary surveys.
6. Review and Feedback: Developments in the external environment influence the organizations continuously and also cause changes in the internal factors. For Example: Technological changes influence the job characteristics and requirements profoundly. Consequently, organizations are forced to review the jobs at periodic intervals to determine their worth in the changed context. Feedback should also be collected from different shareholders like job-holders, supervisors, managers, and unions about the various aspects of job evaluation to constantly improved the job evaluation process.