Compensation Management
HR 434
“Conducting Job Evaluations” by Carmen Campbell for Professor David Gebhardt

My position pays what? How does my job rank among other jobs in the area? Responsibilities which encompass a job determines compensation, from which, a company will pay an employee’s for their time, skills or services used to complete assigned work. Job evaluation consists of factors which describe the responsibilities required of a particular job and the value the company has assigned to factors the employee accomplishes. As an employer and an employee understanding the factors associated with job evaluation are important to determine if the responsibilities and pay are associated with services provided are fair. For simplicity we will use the following factors to compare two evaluation methods: skill, effort, responsibility and working condition. (U.S. Equal Employment Opportunity Commission, 2010). The way a company choses their pay scales vary; however we will compare the Hay Method and the Factor Evaluation System. Job evaluation encompasses numerous areas of a job and the skills factor is a starting point for a company to determine importance of skills possessed by the employee. Skills refer to required abilities to accomplish assigned tasks. Skills are “measured by factors such as the experience, ability, education, and training required to perform a job.” (U.S. Equal Employment Opportunity Commission, 2010). Skills required can vary from heart surgery to mopping the floor to reprogramming a computer and are determined by the company evaluating or creating the company’s job evaluation program. Experience refers to how knowledge has been gained or used. Work experience can be gained by an apprenticeship working and learning under a master technician or by gaining knowledge through experiencing a wide array of duty