Job Evaluation Methods
Three job evaluation methods used for determining compensation strategy are point-factor rating, job classification, and job ranking. Point-factor is an analytical approach in which jobs are broken down into factors – the necessary skills or responsibilities. Each factor is assigned a score, and these scores are then summed up to determine the numerical value of the job for the organization. The advantage of this method is that, if the job analysis is done appropriately, it provides evaluators with specific criteria for determining compensation, thus increasing objectivity and consistency (Armstrong, 2018). However, the point-factor rating can be complex and difficult to amend should the organization’s priorities or values change (Armstrong, 2018). Job classification is a non-analytical approach in which evaluators determine grades depending on the level of responsibility. After that, jobs are allocated to grades by matching the job description with the grade description (Armstrong, 2018). The advantages of this method are its simplicity and standardization of evaluation since grade descriptions allow for comparisons between different jobs (Armstrong, 2018). Its disadvantage is that complex jobs can be difficult to fit into one grade.
Job ranking is considered the most primitive approach to job evaluation. When using this scheme, the evaluator arranges jobs hierarchically depending on the job’s value to the organization. The disadvantages of this method are that it is inappropriate for large organizations and that it relies on subjective judgments instead of defined standards (Armstrong, 2018). Its advantages are simplicity and effectiveness for small organizations because it is easy to arrange a small number of jobs.
Recommended Job Evaluation Method
Since the organization from the scenario is small because it employs only 40 workers, the recommended job evaluation method is job ranking. As was mentioned, this approach to determining compensation is often used in small-sized organizations and is effective in this setting. It is easy to develop and provides a simple and fast method of grading jobs and establishing relations among them (Armstrong, 2018). However, if the organization decides to expand over time, it will need to shift to another job evaluation method because job ranking will become cumbersome and difficult to manage.
Recommended Benefits
The organization already provides legally mandated employee benefits, so these recommendations will be concerned only with voluntary benefits. First, the organization should consider providing retirement plans, such as 401(k) plans. It would help support employees who are concerned about their financial situation after retirement (Baluch & Bottorff, 2022). Second, the company may provide a flexible spending account (FSA) to help employees manage their healthcare expenses. The funds for an FSA are deducted from employees’ earnings before tax, thus reducing employees’ tax burden, and they can be used to cover eligible medical costs (Baluch & Bottorff, 2022). Third, the organization may offer a health savings account (HSA), which enables workers to set aside tax-free money for medical expenses. The funds from the HAS stay with employees if they decide to change jobs, so it provides them with an increased sense of security (Baluch & Bottorff, 2022). Fourth, the company can offer employee assistance programs (EAPs) through the health insurance plan or as a standalone program (Baluch & Bottorff, 2022). EAPs help workers cope with situations affecting their job performance.
Fifth, the organization can provide employees with life insurance, which is especially helpful for employees who have families dependent on them financially. Sixth, remote work options and flexible working hours should be considered if the job specifics allow for such modalities. This benefit is important nowadays as employees seek greater freedom and improved work-life balance. Finally, the company may provide wellness programs to enhance employee motivation and satisfaction.
Signs of Employee Engagement
To determine whether its employees are engaged, the organization should look at their job performance, emotional state, and interpersonal relationships in the workplace. Engaged employees usually do more than is expected of them, are energetic and accountable, treat colleagues respectfully, offer ideas for improvement, and volunteer to take on extra work (Mishra & Delgado, 2021). Low employee turnover, happy customers, and quickly resolved customer complaints are also signs of engaged workers.
References
Armstrong, M. (2018). Armstrong’s job evaluation handbook: A guide to achieving fairness and transparency in pay and reward. Kogan Page Publishers.
Baluch, A., & Bottorff, C. (2022). Small business employee benefits (2022 guide). Forbes. Web.
Mishra, S., & Delgado, D. (2021). Engineering engaged employees. Quality Progress, 54(6), 16-24.