Job evaluation is a term that comes from Human Resources departments, and refers to the value given to each task within a company, which determines aspects such as the salary of each particular job, as well as the elements to be taken into account when increasing it. In order to do so, various aspects are taken into account methodologies that aim for the most objective assessment possible, This is one of the ultimate objectives of job evaluation in the strict sense of the term.
Job evaluation is the procedure that deals with defining the value of each of the tasks performed in a company. In turn, these tasks are associated with different job roles, which allows the target value of the company's tasks to be transferred to the concrete value of each of the employees who carry them out.
The importance of job evaluation lies in its ability to objectively and tangibly analyse the importance and value of each of the tasks that need to be carried out for a company to function. This also allows to analyse and assess in an equally objective and tangible manner the importance of each of the job roles that undertake these tasks, which allows us to discern the importance of said role within the company and, consequently, the financial resources that should be allocated to each role. In other words, job evaluation allows establish a salary structure, determine the value of the different positions and, in the long term, establish the periodic review of salaries.
Of all the existing methodologies when it comes to job valuation, The Factor Points Method is the most widely used and which has the greatest prestige, as it is considered the most objective of all methodologies that can be used in this regard.
The Factor Point Method divides the different tasks that are carried out in a company, which are called “factors”. Each of these factors is assigned a specific value, which adds points when carrying out job evaluation. Likewise, each of the factors has different “degrees”, which refer to the intensity with which each of the aforementioned factors is carried out. In this way, each of the jobs in a company can be assessed, taking into account the tasks (factors) and the intensity (degrees) associated with each of the jobs, which allows for the establishment of a hierarchy of these jobs with the objective perspective provided by a analysis based on a specific and easily quantifiable score.
When it comes to improving employee remuneration, it's important to consider that, while salary is the main and most valued part of that remuneration, it's not the only part. In this regard, it's possible to improving the purchasing power of employees without the need to implement a direct wage increase, which can be achieved by improving workers' social benefits through options such as Ticket Restaurant, Nursery Ticket or Transport Ticket, among others. These options allow the employee to increase his or her purchasing power without the need for the company to directly increase wages, which translates into an improvement in the employees' working conditions without affecting the company's expenses.
