We would probably all agree that, when buying something, we should know what the item’s purpose is and what service it is expected to deliver to us? Equally then, it’s probably a good idea that when employing people- particularly those with a 6 figure price tag- we should have a clear definition of our expectations for deliverables. Obviously an outline job description has to be a fundamental requirement - But every job description must contain a clearly defined view of the expected outputs of that role and how it fits with the overall business need. At Board level the deliverables must not just be couched in terms of strategy and governance. Specific measurables closely geared to performance must feature - particularly if there is to be any form of bonus element.
Is Our Pay Fair - and Unlikely To Lead To An Employment Tribunal Claim?
Few HR activities have the degree of impact on the organisation as job evaluation. Contrary to popular belief, all organisations operate a system of job evaluation. Even if you only employ 3 people - say a Chief Executive, a Sales Manager and a Secretary / Administrator - by deciding a rank order of their worth to the company, you have undertaken a form of job evaluation called “Ranking”. Unfortunately this does not work so easily if you have just a few more employees- and you need a form of “analytical” job evaluation to ensure you do not fall foul of employment (equal value or discrimination) law. The author has been involved in advising on a number of claims, in Employment Tribunals, that have related to Board level - in Manufacturing, Finance, Logistics, Retail and other service sectors. At a time when all the legislation surrounding inequality, discrimination, information and consultation issues clamour for our attention in a seemingly never ending battery, a 'light touch' form of job evaluation can provide us with a key to setting the right pay levels and improve employee communication and engagement in the process. In particular, of course, job evaluation should be used as the foundation for a robust pay structure, but first of all we have to understand that it is not a stand- alone “panacea” for all the employment ills of the organisation- a fact that is not always recognised in the rush to implement. Remember it is just a means to an end (or several ends if used properly). Job Evaluation provides the basis for a fair reward structure that supports the business structure and can help you control and run the business the way that you want it to be run.