"Improving Productivity Through Innovation"

Job Evaluation & Grading

 
A cornerstone to any successful organization is job evaluation & grading, the process of determining as objectively as possible, the value of a job to an organization. 
The key purpose of job evaluation & grading is to produce the information necessary to design and maintain an equitable distribution of “Total Cost” packages appropriate to level of position being performed

OptiHR Consultants have implemented grading frameworks and compensation & benefits frameworks tailored to needs of leading organizations demanding professional solutions in the quickest timeframe using the Paterson Decision Banding method.

 Key Features of Paterson

  • Extensively used within the construction, manufacturing, trading & service Industries.

  • Easily understood by all levels in the organization

  • Useful Organizational Design Tool. 

  • Quick and easy to implement compared to other frameworks. 

  • Flexible and easily tailored to suit the organization. 

  • Economical on Management Time.

  • Internationally Accredited by International Labour Organization (ILO)

  • Supports organization with labour intensive structures.

Paterson & The Decision Band™ Method (DBM)

The Decision Band™ Method (DBM) of job evaluation is a highly effective method of objectively evaluating the worth of a job to an organization. A sound theoretical framework serves as the basis of the method which provides a consistent and valid approach to comparing and contrasting jobs.

Initially developed over thirty years ago by Professor Emeritus Thomas T. Paterson, and further refined by Fox Lawson's compensation consultants, through hands on experience in government settings, the Decision Band™ Method has been tested in organizations throughout the world as a means of identifying rational distinctions in pay for all jobs. DBM has been used successfully in both public and private sector organizations. Organizations converting their current job evaluation plans to the DBM framework can be assured that their pay hierarchy will be reliable, valid and justifiable.

The basic premise of DBM is that the value of a job to an organization is based on its level of responsibility. Responsibility is reflected, and therefore measured, by the decision-making requirements of the job. Because all jobs require incumbents to make decisions in order to perform their jobs, decision-making is a logical and equitable basis on which to compare jobs within an organization.

DBM job evaluation involves three basic steps. First, jobs are classified into one of six different "Decision Bands" based on the characteristics of the decisions that a job requires. This classification process reflects the level of responsibility of the job within the organization. The second step involves classifying the jobs within each "Decision Band" into one of two "Grades" based on the differential supervisory difficulty and effort required of the job. Each of the six bands is subdivided into two grades, (coordinating and non coordinating) or subclasses, depending on the requirements to monitor or supervise subordinate jobs.

At this point in the process, jobs will have been classified into a hierarchy of twelve different classes of jobs, based on the job's level of responsibility and supervisory difficulty and effort.

The third and final step involves further subdivision of jobs within each grade into subgrades by reference to the complexity, difficulty, and skills required of the job in relation to other jobs that have been classified into the same Band and Grade. Frequently, this Subgrading is done within each occupational group in order to facilitate the making of relative judgments in comparing the complexity, difficulty, and skills required of jobs across different occupations. The Subgrading process shares many characteristics with point-factor methods of job evaluation.

Finally, the jobs are priced within the relevant labor market.

DBM is easy to use, highly reliable, administratively fast and efficient.

We recommend the Decision Band™ Method to any organization that is interested in simplifying its classification and compensation system either in terms of broader bands of classification or because it can be used to rationalize the logic behind pay.