Reward strategy and Job Evaluations

In recent years there has been a trend towards large organ­i­sa­tions util­is­ing “job eval­u­a­tion” sys­tems such as the Mer­cer “Cullen Egan Dell (CED)” or “Inter­na­tional Posi­tion Eval­u­a­tion (IPE)” sys­tem. These are fan­tas­tic sys­tems, but are really only part of what is needed for a reward strategy.

It’s well and good to decide that a par­tic­u­lar job deserves an arbi­trary score, but what of exter­nal fac­tors? There are many other fac­tors to take into account, includ­ing the pre­vail­ing labour mar­ket con­di­tions for the indus­try, spe­cific tech­nolo­gies involved in the job, and of course organ­i­sa­tional size and finan­cial position.

If you are con­sid­er­ing a revised reward strat­egy, embrace the job eval­u­a­tion sys­tems, but do not do so in iso­la­tion. The approach taken really needs to embrace fac­tors exter­nal to the job itself.