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Poll Shows That Most Organizations Used Market-Based Job Evaluation

I was searching this morning for data on the prevalence of different job evaluation approaches for a client and came across this WorldatWork poll published early in 2005 (a few years old, but very relevant stil, particularly since this question does not appear to be addressed in any more recent research I could find).

The WorldatWork poll asked participants to identify the dominant job evaluation method used in their organization.  Nearly 450 members responded, as follows:

  • Market pricing - 61.0%
  • Point factor - 23.0%
  • Whole job (e.g., ranking or classification) 8.8%
  • Job component - 3.8%
  • Do not use (formal) job evaluation - 3.4%

The data confirm my assertion in an earlier post that most organizations use a market or external-based job evaluation method.  There is also confirmation here, however, that point factor (or internal job content-based) approaches - while they are not currently and probably never will be (save a government mandate) the dominant method - continue to represent a valid choice for a certain minority of organizations.  (See also earlier post on when internal or job content based job evaluation is a good fit.)

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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