How do you deal with the challenges and limitations of job ranking and job grading methods?

1 What is job ranking?

Job ranking is a simple and qualitative method of job evaluation that involves ordering jobs from lowest to highest based on their overall worth to the organization. Usually, a committee of managers or experts ranks the jobs based on their perception of the skill, responsibility, effort, and working conditions required for each job. The ranking can be done by assigning numbers, letters, or titles to the jobs, or by placing them into categories such as unskilled, semi-skilled, skilled, and professional. The main advantage of job ranking is that it is easy and inexpensive to implement, especially for small organizations with few and similar jobs. However, the main disadvantages of job ranking are that it is subjective and prone to bias, that it does not provide clear criteria or standards for ranking the jobs, and that it does not account for the differences in the degree of difficulty or importance among the jobs.

2 What is job grading?

Job grading is a more complex and quantitative method of job evaluation that involves grouping jobs into predefined classes or grades based on their similarities and differences in terms of compensable factors. Compensable factors are the characteristics of a job that determine its value to the organization, such as skill, responsibility, effort, and working conditions. Each factor is assigned a weight and a score based on its relative importance and level. The total score of a job determines its grade and pay range. The main advantage of job grading is that it is more objective and consistent than job ranking, that it provides clear criteria and standards for evaluating the jobs, and that it allows for flexibility and adjustment of the grades and pay ranges over time. However, the main disadvantages of job grading are that it is time-consuming and costly to develop and maintain, that it may not capture the uniqueness or diversity of the jobs, and that it may create rigidities and inequities in the pay structure.

3 How to deal with the challenges of job ranking?

To deal with the challenges of job ranking, you need to ensure that the process is fair, that the rankers are qualified, and that the results are validated and communicated. It is important to define the purpose and scope of the job ranking exercise and communicate it to all stakeholders. Additionally, a diverse and knowledgeable committee of rankers should be selected who have a good understanding of the jobs and organizational objectives. The rankers should be provided with clear and updated job descriptions as well as relevant information on market rates and internal equity. Multiple methods of ranking, such as pairwise comparison, ordinal ranking, or categorical ranking, should be used in order to compare results for consistency and reliability. Finally, the ranking should be reviewed and revised periodically to reflect any changes in the jobs or organizational needs.

4 How to deal with the challenges of job grading?

To address the challenges of job grading, you must ensure that the grading system is valid and reliable, that the grades and pay ranges are in line with the market and the organizational strategy, and that the employees are content and engaged. To accomplish this, conduct a comprehensive job analysis to determine the compensable factors and their weights and scores for each job. Additionally, use a standardized, transparent method of grading, such as point method, factor comparison method, or market pricing method, applying it uniformly across the organization. Benchmark the grades and pay ranges against external market data and adjust them accordingly to guarantee competitiveness and fairness. Make sure to communicate the grading system and its rationale to employees, providing them with feedback and appeal mechanisms. Finally, monitor and evaluate the grading system regularly to guarantee its effectiveness and efficiency.

5 How to choose between job ranking and job grading?

There is no definitive answer to which method of job evaluation is better or worse, as it depends on various factors such as the size, complexity, and culture of the organization, the nature and diversity of the jobs, the availability of resources and data, and the objectives and expectations of the stakeholders. Therefore, you need to consider the pros and cons of each method and choose the one that best suits your situation and needs. Alternatively, you can use a combination of both methods or adopt a different method altogether, such as job classification, job component method, or competency-based method. The key is to ensure that the method you choose is aligned with your organizational goals, values, and policies, and that it supports your human resource management practices.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?