PART THREE

Strategy, Rewards, and Behaviour

Determining
Compensation
Values

Chapter 7
Evaluating Jobs: The Job Evaluation Process
Comparing Jobs…
— Most organizations must be able to
compare jobs of different types.
— The ESA requires ‘equal pay for equal
work’
— Pay Equity require ‘equal pay for work of
equal value’
— Requires:
◦ A job description (see page 266)
◦ A method for evaluating jobs in a gender-bias
free manner.
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 Job Analysis
The process of collecting information on which job descriptions are based.

job description:
job specifications:
a summary of the duties,
the employee qualifications deemed
responsibilities, and reporting
necessary to successfully perform the
relationships pertaining to a particular
duties for a given job
job

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Copyright (c) 2010 by Nelson
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Education Ltd
Pay Equity Requirements
— Job descriptions must contain sufficient detail to
determine the following characteristics of the job:
◦ Skill
◦ Effort
◦ Responsibility
◦ Working Conditions
— Each section must make up at least 10% of the points
used to determine ‘value’.

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Methods of Job Analysis:

observation interviews

functional job
questionnaires
analysis

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Methods of Job Analysis
— Observation – observations are made by a trained
individual directly or through video. Most often used
with manual labour.
— Questionnaires – employees and/or managers complete
a standardized questionnaire. More common with
clerical or manual labour.
— Interviews – employees are interviewed by a trained
individual. Most common form of gathering
information.
— Functional Job Analysis – jobs are matched to NOC
standards. Rarely used due to the limitations of the
NOC descriptions.

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Ranking

• ranking method the relative values of different jobs are determined by

knowledgeable Individuals

Paired Comparison

• every job is compared with every other job, providing a basis for a
ranking of jobs

classification/grading

• the use of generic grade descriptions for various classes of jobs to

assign pay grades to specific jobs

factor comparison method

• assigns pay levels to jobs based on the extent to which they embody
various job factors

Point method

• establishes job values by the application of points to each job, based on

compensable factors
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 Conducting and Managing the
Job Evaluation Process
Who Conducts the Job Evaluations?

Communicating the Job Evaluation Process

Applying Job Evaluation Results

Developing Appeal/Review Mechanisms

Updating Job Evaluations

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When to Update Job Evaluations
• the job itself changes significantly
1

• the strategy of the organization changes

2

• signs that the job evaluation system is no longer

3 working effectively

• labour market conditions change significantly

4

• legislative conditions require it

5

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 Ontario Pay Equity Act
1 Determine what rules apply
2 Identify female and male job classes
3 Establish a body to conduct pay equity
4 Select a gender-neutral job comparison system
5 Collect job information
6 Compare jobs
7 Check for permissible differences
8 Adjust compensation
9 Communicate the results
10 Maintain pay equity

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 Web Links:
—The Canadian National Occupational
Classification, HRSDC website:
http://www.hrsdc.gc.ca/en/hip/hrp/noc
/noc_index.shtml
— Information on the U.S. occupational
classification system can be found on the
O*Net site:
http://online.onetcenter.org

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Web Links:
— The Pay Equity Task Force:

— http://www.collectionscanada.gc.ca/w
ebarchives/20071121061932/www.jus
tice.gc.ca/en/payeqsal/6000.html

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 Web Links:
— The Ontario Pay Equity Commission
provides a website that describes the steps
required to achieve pay equity, along with
links to the specific guidelines for each
step.

— http://www.payequity.gov.on.ca/peo/e
nglish/pubs_10steps.html

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 Using the Internet

— To trace through the steps required to create a

gender-neutral job evaluation system that complies
with Ontario Pay Equity legislation

— http://www.payequity.gov.on.ca/peo/
english/pubs_10steps.html

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 Using the Internet

— To test your knowledge of pay equity provisions in an

interactive way, take the “Pay Equity Quiz” developed
by the Ontario Pay Equity Commission.

— http://www.payequity.gov.on.ca/peo/english/quiz/start.htm
l

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