Organisations of all types, including public agencies, private businesses, and non-profits are changing their ways of working in today’s financial constrained environment. As a result of falling incomes, rising costs and increasing pressure to cut expenditure, HR departments are forced into discussions about cost-savings.
The continued investment in formal Job Evaluation (JE) schemes is one of the areas that are being questioned. Some may question whether maintaining the job evaluation framework still is a priority if recruitment is on hold or if new roles aren’t being created. This assumption could be a costly mistake.
It may seem like a good idea to reduce job evaluation, but this is a mistake. It’s not just about the new jobs that a credible and well-established process of job evaluation is important. It is the basis for fair, transparent and consistent pay decisions across the board.
As many organisations do right now when they adapt roles, streamline services or restructure teams, these job changes must be properly evaluated. If this is not done, employers may be exposed to unfair claims about inequality and their decisions on pay will lack rigor.
Even during contraction, compliance is still ongoing
The law on equal pay does not pause during a recession. When organisations change roles without evaluating if those roles are more complex, less complex, or have a fundamentally different complexity, they run the risk of undermining their own pay structures that they’ve spent years developing.
They may also find that they are unable to prove compliance with the equal pay laws. This not only poses a legal but also a public relations risk. This exposure is greater in unionised environments and highly visible public services.
Even when reducing the size of your business, strategy still matters
The job evaluation process should not be viewed as an HR function, but rather a strategic tool. Even in a shrinking organization, it is important to identify roles that are similar or duplicated, as well as ensure that the key responsibilities of each role are fairly distributed. The data and structure of job evaluation can help you make these decisions.
During periods of change, organisations who maintain a consistent and clear approach to JE will be better able manage their talent, retain staff trust and make informed decisions about where to invest or where to cut back.
It is not the goal to make job evaluation complex but to ensure that it delivers value where it is most needed.
Look at the big picture
In times of difficulty, it may be tempting to go back to basics. Job evaluation , however, is the foundation for fair employment practices. Reduced investment in JE may result in short-term cost savings but will have significant long-term consequences: low morale, loss of trust, misaligned structure or even pay dispute.
Organisations with a strong commitment to JE will be more resilient and better equipped to handle change. They will also appear more credible to their employees.
It’s more important than ever to ask yourself if you can afford or not your job evaluation system.
www.ecc.ac.uk
