Factors are the primary means of communicating the values of an organization and the elements of a job that deserve recognition.
(IDS1)
As described in Chapter 2, job evaluation factors are the characteris- tics or key elements of jobs that are used to analyse jobs in an analyt- ical job evaluation scheme. The factors must be capable of identifying relevant and important differences between jobs that will support the creation of a ranking of the jobs to be covered by the scheme.
They should apply equally well to different types of work, including specialists and generalists, lower-level and higher-level jobs, and not be biased in favour of one gender or group. Although many of the job evaluation factors used across organizations capture similar job ele- ments, the task of identifying factors can be challenging.
There are a number of different approaches to identifying factors.
Whatever approach is used, the final tests are that they:
ឣ are seen as important and acceptable criteria for creating pay differences between jobs;
ឣ describe the same characteristic or element at different levels in order to differentiate meaningfully between jobs;
ឣ are understandable and written in a way that is meaningful to those who will be covered by the scheme;
ឣ are comprehensive, but avoid double counting;
ឣ are acceptable to those who will be covered by the scheme;
ឣ are not biased.
If the above tests are met, a simple scheme with relatively few fac- tors can meet organizational requirements as much as a more sophisticated scheme. As stated in the ACAS job evaluation guidance notes,2‘simple job evaluation techniques acceptable to both parties can be just as effective as complex ones’. The advice from respon- dents to the E-Reward survey3was also to keep it simple. In practice, however, larger, more complex organizations typically include more factors to ensure that the scheme is balanced and fair to all the employee groups covered by the scheme. For example, the scheme developed for the National Health Service has 16 factors, the local government NJC scheme has 13 and the scheme developed for fur- ther education has 11 factors with a total of 23 sub-factors.
Sources of information
The following sources of information and approaches to support the development of factors are available:
ឣ Reviewing internal strategy/business documents: looking through existing written materials such as organization or human resources strategy documents can give an insight into the current values and language.
ឣ Reviewing people-related frameworks or processes: in the past, job evaluation criteria were not necessarily linked to other human resources processes or frameworks; however, many organizations have now accepted the need to have a more coherent approach by applying the organization’s values and language across related processes. Reviewing existing job descriptions may be a place to start. However, the most obvious potential link is with an organization’s competency framework, as many of the concepts reflected in
competencies are similar to job evaluation criteria, albeit expressed in behavioural or skills-based language. How closely a link can be made with an existing competency framework will, of course, depend on how the competency framework has been defined. However, the desirability of achieving a degree of linkage was a finding from the E- Reward survey, and was one of the main reasons for companies favouring a tailor-made scheme.
ឣ Interviews with line managers and other stakeholders:discussions with key managers can help to get an early perspective on the senior management priorities for the scheme. This group is most likely to have a view about the future demands on the organization and what work will be valued. Early senior manager involvement can also help to dispel myths and misconceptions about job evaluation, and can support the overall communications process – particularly if the
managers concerned are those who will later be responsible for approving the scheme.
ឣ Focus groups:structured meetings with employees can be an effective way of understanding what aspects of jobs are currently valued, and what people think should be of most importance. The process can also provide a positive
contribution to the overall involvement and communications process. As employees may be unfamiliar with job
evaluation concepts, the agenda will normally need to cover:
an overview of what job evaluation is, the rationale for introducing job evaluation, what factors are and what makes a ‘good’ factor. Then views can be explored on possible factors. Focus groups can also be used to explore employee views about how the scheme should be communicated further.
Focus groups can be particularly useful for organizations with geographically or functionally diverse constituencies or for developing sector-wide schemes. In developing the further education scheme, focus groups were run in about a dozen colleges around the country. They were selected to represent different types of institution as well as geographic diversity. The focus groups generated a long list of possible factor headings, which showed a high degree of consistency across the institutions. This input was clustered into 11 main groups, which became the factors.
Consideration should also be given as to whether to get input from other stakeholders. For example, a voluntary organization may want to involve volunteers in focus groups, or to solicit the views of key trustees. But this is unusual. It is more common and necessary to involve trade unions or other employee representatives at an early stage.
ឣ Project team input:the project team can explore possible factors in a number of ways, for example:
– Open discussion – drawing on the inputs that are available to the team from other sources.
– Selecting a number of jobs/roles and exploring the differences between them – what makes one ‘bigger’ or
‘smaller’ than another. This can be done informally or through a process such as whole-job ranking or paired comparison. Another exercise that can be used for the same purpose is ‘stacking’. This process involves putting job titles on cards, and splitting the cards into ever- smaller groups, discussing and documenting the criteria as the decisions on group allocation are made (see illustration of process in Appendix 5).
– Using an existing database or list of common factor headings; posting these up on a flipchart and drawing out and clustering the job dimensions that seem most relevant to the organization. If a consultant is being used, this exercise is likely to use headings from their factor database.
Job evaluation factor headings
When the main job dimensions have been identified, they need to be sorted into clusters, for the purpose of identifying the main fac- tor headings. An analysis of job evaluation factors show that they typically fall into six main areas:
1. the combination of the skills, knowledge or experience that the employee needs to do the job;
2. the thinking challenges of the job, for example planning, analysis, decision making and problem solving;
3. interpersonal skills, including communication and relation- ship building skills;
4. the responsibilities that the job has for resources, eg human, financial or physical resources;
5. the kinds of impact that the role has, either on internal opera- tional effectiveness or on the external customer or environment;
6. the environmental, emotional or physical demands that are made in a job, for example difficult working conditions, involvement in dealing with challenging behaviour or opera- tional dexterity.
Within these six areas there are many different ways in which jobs can be described. This will depend on the extent to which the organization wants to express jobs in terms of responsibility or the effects of the job on the organization, or in terms of the ‘inputs’ that a job requires, ie what combination of applied knowledge, skills or behaviours (ie competencies). For example, most organizations include a factor relating to communication skills in their scheme.
However, one organization may define this as the interpersonal skills needed to build relationships; another might place emphasis on the level and type of internal or external contacts that the job is required to have; yet another might focus on core verbal and aural communication skills required at different levels. Factors are a vehi- cle for communicating values – what is important to the organiza- tion, so there is no ‘right’ answer to factor selection, subject to rea- sonableness tests discussed later in the chapter. Appendix 6 pro- vides a matrix of factors used by participants in the E-Reward sur- vey, separated into ‘skills and behaviours’ and ‘responsibilities and effects’ headings. Appendix 8b lists the factors contained in the scheme developed by the writers of this book for the Association of Colleges (further education).
To ensure that the scheme is fair across the whole employee pop- ulation, it is important to identify factors that are balanced across the population. If the scheme includes a factor that is oriented towards one type of job, it needs to be counterbalanced by factors that are relevant for other staff. A charity specializing in providing community care included a factor about responsibility for caring for others, while balancing this with factors relating to responsibility for resources and for staff. From an equality perspective this balance
is particularly important if any factors are more likely to relate to one gender. In a company that tended to employ male warehouse operators and female clerical staff, a working conditions factor and an operational dexterity factor were included.
Sub-factors
Some points factor schemes break down broad factor categories into sub-factors. For example, if an organization decides to include a fac- tor or factors relating to ‘Impact’, ie the internal operational and external impact of jobs, there are a number of ways of capturing this:
1. a single factor that encapsulates both the internal and exter- nal aspects of impact;
2. one factor for internal impact and a separate factor for exter- nal impact, recognizing that while some jobs have an internal focus and impact, others have an external focus, and some have both;
3. one factor called ‘Impact’ containing two sub-factors, one relating to internal and one relating to external impact.
It could be argued that there is no difference between points 2 and 3. However, the difference between the two is more likely to be apparent when points are attached to each of the factors. A decision on how to cluster factors and whether to have sub-factors may well anticipate how the scheme will be scored: whether a separate inter- nal and external ‘impact’ factor are each considered to be as impor- tant as other factors, or whether a single ‘impact’ factor made up of two sub-factors is more likely to have a similar weighting to the other main factor headings.
This decision might also be steered by how simple or complex the organization wants the scheme to be. Does the organization want a simple scheme that is capable of being administered on a simple spreadsheet or is it prepared to support greater sophistication?
Developing the factors
In developing the factors, a logical sequence is first to define and get agreement within the project team (and with the steering group if there is one) on what each of the factor headings should be, includ- ing a brief explanation of what falls under the heading, before embarking on the longer process of defining factor levels. It is important to get this initial definition right, as it will determine the scope of each factor and allow checks to be made on the complete- ness and balance of the factors, as well as ensuring that double counting is avoided.
Identifying and defining levels
When the factor headings and definition have been agreed, the next step is to identify and define levels for each factor. It would be a frustrating and impractical task for the detailed drafting to be done by the project team. This is a task that is better delegated to one or two team members; if a consultant is being employed, this is often a task that they will take on.
However, before the drafting starts, it is helpful to have team input on possible factor levels. The project team can be asked to brainstorm examples of what would characterize the highest or lowest level for each factor, based on what they know about jobs in the organization. To do this thoroughly in a limited time, the team can work in small groups, with each group working on different factors; each small team can then circulate their work on to another team when they have finished, and so on until each team has had a chance to review and add to the ideas put down for each factor. This is the approach adopted for developing the NHS JES factor levels.
This process led to review of some of the initially selected factors, as it became clear that there was double counting.
Initial factor testing
When an initial draft of the factors has been prepared, this needs to be tested. This first stage of testing involves checking:
1. Whether any important dimensions of jobs are missing; par- ticular care should be taken to ensure a balance between the
types of work primarily performed by both male and female employees.
2. Whether the language is clear, and likely to be understand- able across the organization: for example, if relative terms like
‘small’, ‘medium’ and ‘large’ have been used, are they able to be interpreted consistently across the organization? If not, should they be changed or will there need to be supplemen- tary guidance notes?
3. Whether the steps between levels in each factor or sub-factor describe measurable steps and whether the number of levels seems right.
4. Whether each of the factors captures a distinct and separate job dimension, rather than compressing two or more concepts into the same factor; for example, if thinking skills are cap- tured in the scheme, does the requirement for analysing issues need to be captured separately from the need to come up with solutions, or can they be encompassed in the same factor?
5. That the factors do not double count each other; for example, factors such as decision making and freedom to act or auton- omy may well contain overlap – if so, are both factors neces- sary?
6. Whether there is a balance between simplicity and thorough- ness; factor wording problems reported by organizations with job evaluation schemes in the E-Reward survey included, on the one hand, problems relating to insufficient detail and over-generalization and, on the other, overly prescriptive wording.
There are several different ways to do this first stage testing, for example by:
ឣ getting project team members to read through and comment on the factor level definitions before or during a project team meeting;
ឣ presenting small groups of project team members with sets of factors that have been cut up and reordered, with the request that they recompile each factor into the same order that they think they were drafted in; this is a very effective exercise in making all participants review both the wording and sense of individual phrases, as well as in testing the clarity of the level definitions;
ឣ the project team using the draft on a small number of test jobs; this testing might be on ‘dummy’ jobs, on a small number of pre-prepared jobs, or on a sample of jobs that the team members are familiar with.
The next stage of testing is to take the draft factor plan beyond the project team, and into the organization. How this is done will depend on the decision that is taken on how jobs will be analysed.
This is described in detail below.