AS a consultant who has worked on numerous job evaluation projects, I have observed a recurring challenge: many leaders and executives do not fully understand why job evaluation is conducted.
Job evaluation serves as a systematic method to determine the relative worth of different positions within an organisation. Many leaders often see it as a box-ticking exercise — a process to grade jobs and move on. But job evaluation serves a much bigger purpose. Its ultimate goal is to provide a solid foundation for establishing an equitable and defensible pay structure. Without this critical follow-up step, a job evaluation exercise is, quite frankly, a waste of time and resources.
In my experience, several indicators signal that it may be time to revisit your job evaluation system. Here’s a deeper look at these scenarios:
Frequent job grade queries and complaints
When employees frequently question the fairness of job grades or pay disparities, it’s often a sign that the existing job evaluation system is no longer serving its purpose. This typically happens when:
l Pay is not properly aligned with market realities.
l Employees in similar roles are placed in different grades without a clear rationale.
l Pay structures are outdated or poorly implemented.
If left unaddressed, these issues can lead to widespread dissatisfaction and higher turnover.
Political interference and
arbitrary grade adjustments
Job evaluation is meant to be an objective process, but in some organisations, it can become a tool for advancing personal agendas. When certain individuals are elevated to higher grades for political or personal reasons, it undermines the entire system. This lack of transparency erodes trust and demoralises employees who see the system as unfair and manipulated. Ethical leadership is non-negotiable for a job evaluation system to succeed.
A disconnect between job grades and market competitiveness
Even the most rigorous job evaluation systems will fail if the resulting pay structures are not competitive with the market. An outdated pay structure not only creates dissatisfaction but also makes it difficult to attract and retain top talent. If your organisation hasn’t reviewed its pay structure in several years or if you are struggling to compete for talent, a comprehensive job evaluation exercise coupled with a pay structure review is essential.
Lack of alignment with organisational changes
Organisations evolve, and so do the roles within them. Mergers, acquisitions, restructuring, or the introduction of new technologies can fundamentally alter the nature of work. If your job evaluation system doesn’t reflect these changes, it becomes irrelevant. When jobs no longer align with their current grades, it’s a clear sign that your system needs an overhaul.
Ethical and transparent leadership styles
A job evaluation system can only thrive in an environment where leaders are committed to fairness and transparency. Unfortunately, I’ve seen cases where unethical leaders have used job evaluation as a weapon to punish opponents or reward allies. This destroys the system’s credibility and the trust employees place in it.
When seeking to redo your job evaluation system, it’s crucial to work with ethical and principled consultants. The right partner will prioritise objectivity and resist attempts to manipulate the process for personal gain.
Past evaluation failures
If previous job evaluation projects have failed to achieve their intended goals, it’s crucial to understand why. Perhaps there was too much political interference, a lack of transparency, or a failure to link the evaluation to a robust pay structure. Learning from past mistakes is essential for future success.
Choosing the right consultant
If you decide to redo your job evaluation system, it’s crucial to select a consultant who shares your commitment to ethics and transparency. Some consultants may be willing to compromise their principles to please their clients, even if it means creating an unfair system. Choose a consultant with a proven track record of integrity and a genuine desire to help you build a fair and equitable workplace.
Lessons from the field
Through years of consulting, I’ve learned that job evaluation is not just about creating grades; it’s about ensuring equity, transparency, and alignment with business objectives. However, even the best-designed systems can fail if:
l They are not supported by a competitive pay structure.
l Leaders do not commit to ethical and transparent practices.
l The system is not regularly reviewed and updated to reflect changes in the organisation and the market.
Redoing your job evaluation system should never be an impulsive decision. It requires careful planning, the right expertise, and a genuine commitment to fairness. When done right, it can create a foundation for sustained employee satisfaction and organisational success. But when neglected or misused, it can become a source of conflict, dissatisfaction, and lost credibility.
n Nguwi is an occupational psychologist, data scientist, speaker and managing consultant – Industrial Psychology Consultants (Pvt) Ltd, a management and HR consulting firm. Email:mnguwi@ipcconsultants.com or visit our websites https://www.thehumancapitalhub.com/ and www.ipcconsultants.com