The Role of Job-Content Based Job Evaluation in Establishing Global Equity

A client and a reader's comment, both this week, helped call my attention to a need that is driving renewed interest in job content based job evaluation.

In response to my post When Is Job Content (e.g., Point Factor) Job Evaluation Appropriate?, a reader who heads compensation and benefits for an international company added another situation to my list:  the need for a tool to help structure an entire global organization through comparing jobs across countries in order to create a boundary-less organization.  In his mind, this is a key reason why many global companies are considering the move back to "traditional" job evaluation.

I had a number of discussions this week with a client who has hired me to help the organization figure out whether they should replace their current point factor job evaluation system with a market-based approach.  This company is in the early stages of what will eventually be a significant global expansion.  A senior executive confided to me that their current job evaluation system - for all the troubles it has been giving them in other areas - was absolutely instrumental in setting up a pay structure for a new Asian location where valid local market compensation data was very difficult to come by.

Perhaps globalization will indeed spur a new level of interest in point factor job evaluation.  This is a trend that I will watch with interest.

Comments

[Frank Giancola]

Ann,

Your observations agree with what the Hay Group has told me about the growing interest in their point factor job evaluation system. They indicate that people have a need for a structured approach to setting pay rates that is more transparent than the market approach. Also, Japanese and European firms generally like job evaluation plans. One reason is their objectivity.

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AB - Frank, the renewed interest that Hay Group is seeing makes sense. Perhaps there is a real renaissance afoot! I also have seen the international interest in job evaluation here on my very own blog - most of the "hits" on job evaluation related posts come from outside the U.S. Thanks, as always, for your comment!

Frank

[bala]

Hi Ann,

Nice report.. i would be more interested in understanding the compensation trends in the UK..

kindly interested you to share any reports that may be available with you. I assure you that whatever has been shared by you will be for my personal use only.

regards
Bala
India

[bala]

HI Ann,

It will really helpful, if you can share with me further details/ reports on the compensation trends for the UK region..

Thanks
Bala
India