Job Evaluation Versus Market Pricing: Competing or Combining Methods of Pay Determination?

Abstract

The authors review what is happening to job evaluation today and conclude that while formal job evaluation schemes are still common, especially in the United Kingdom, research shows that the trend is towards simpler approaches. It is noted that market pricing dominates the U.S. scene, but in the United Kingdom, while market pricing is practiced extensively, achieving internal equity and demonstrating equal pay are still a major concern reported by practitioners: hence the prevalence evident in surveys of analytical job evaluation schemes. However, the trend in the United Kingdom is to consign point factor schemes into a subsidiary or supporting role and rely more on analytical matching or levelling techniques. The authors end their article with illustrations of the pragmatic approaches being adopted by U.K. organizations in combining traditional and market-driven pay determination approaches, as reported by respondents to a special e-reward research survey.