Compensation is possibly the most important thing Human Resources must get right. If you underpay people, they will be unhappy or leave. Even more so, it is wrong. Though, if you overpay people, everyone is going to want a raise to match, and your compensation costs will rise.
The solution? Job evaluations. Job evaluations are how we ensure that employees are paid fairly and equitably based on rational means of comparing. It is not about how the wind is blowing today, and it is foundational to HR.
Robert Mosley, who has worked for Hay–the leading job evaluation methodology, walks us through how we size a job. Here is a sample of what you will learn in this episode:
Job evaluation and sizing are the same thing;
#️⃣ ‘Sizing’ means to assign points to jobs, and ‘grading’ is grouping ranges of points together for a manageable compensation system.
4️⃣ There are four common job sizing methodologies. Pick one and use it. It might seem expensive up front, but it manages the risk of getting comp wrong.