Definition
A systematic process for assessing the relative size, complexity, and value of jobs within an organisation to establish a fair and consistent pay structure.
UK Context
Job evaluation is closely linked to equal pay obligations under the Equality Act 2010. An analytical job evaluation study that meets the requirements of section 131 of the Act can provide a defence to equal pay claims by demonstrating that pay differences are based on genuine job value rather than sex discrimination. The Local Government Association's NJE scheme and the NHS Agenda for Change scheme are widely used in UK public sector.
Best Practices
- Use an analytical method rather than a non-analytical one for greater defensibility in equal pay claims
- Include employee representatives in the evaluation panel to ensure transparency and buy-in
- Evaluate roles based on job requirements, not the characteristics of current jobholders
- Review evaluations regularly, especially when job content changes significantly
- Communicate the process, criteria, and outcomes clearly to all employees
Frequently Asked Questions
What is the Hay Method?
The Hay Method (now Korn Ferry Hay Guide Chart-Profile Method) is the most widely used analytical job evaluation methodology globally. It assesses jobs on three main factors: know-how (knowledge and skills required), problem-solving (thinking challenges involved), and accountability (the impact and consequences of the role). Each factor is scored using guide charts to determine the job's relative size.
Is job evaluation legally required?
Job evaluation is not legally required, but it is strongly recommended for equal pay compliance. Under the Equality Act 2010, an analytical job evaluation study can provide evidence to defend pay differences between roles. Without one, it may be harder to justify pay disparities if challenged.
How often should job evaluations be reviewed?
Best practice is to review job evaluations whenever a role changes significantly, when new roles are created, and at least every three to five years as a routine exercise. Regular reviews ensure the pay structure remains fair and reflects the current demands and value of each role.