The role of the Job Evaluation is to provide a systematic, fair and consistent measure of the relative value of jobs in an organization. There are laws that help organizations in the job evaluation process. Laws that are used for consideration are Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, Age discrimination in Employment Act of 1967, and the Title I of the Americans with Disabilities Act of 1990 (EEOC, 2013). Job performance appraisals are important as they provide the manager with opportunity to provide a feedback on how well the employees are performing their delegated duties and a chance to motivate them. Although many companies may want to eliminate this process they are leery of doing so because they still need to be able to have a process that handles fair compensation, records of low performance, employee performance tracking, and manager evaluations. Not only can employee appraisals (reviews) be accurate and effective, but they can also be painless for all parties involved. By following a four step plan throughout the year, by the time the year-end review come about, a manager will be able to deliver a painless and effective performance evaluation. To help create a talented, engaged workforce an organization must balance the use of pay and other rewards with meaningful measures of individual performance. By utilizing a balanced scorecard for performance measurements, a pay-for-performance strategy has a much greater chance of success.
Group Project by Rebecca Blackburn, Tenneysa Hughes, Susan LeBouef, Michael Sabin, Jeff White
Laws That Affect the Job Evaluation Process
All companies and organizations throughout the continental United States, along with other parts of the world at some point in time, will need to turn their attention to evaluations that affect jobs within their workplace. Job evaluations have an effect on equal pay for such areas as; skill, effort, responsibilities, working conditions, and establishment that prohibits against compensation discrimination under the EPA (EEOC, 2013). The role of the Job Evaluation is to provide a systematic, fair and consistent measure of the relative value of jobs in an organization. The Job Evaluation Good Practice Guide, provided by the Cabinet Office, also discloses that the job evaluation is not used to measure performance, amount of work, or the amount of pay an individual will receive.
The articles that are under review assist in the determination of what laws help organizations in the job evaluation process. A few laws that are used for consideration are Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, Age discrimination in Employment Act of 1967, and the Title I of the Americans with Disabilities Act of 1990 (EEOC, 2013). Along with the Equal Pay Act, the job evaluation process will include how race, color, religion, sex, national origin, age, or disability cannot be used in the writing of job evaluations or job reevaluations. By using these articles, it can provide credibility in the job evaluation process, and also can be used to determine job matching criteria and external pay comparisons between organizations that provide the same type of employment.
Importance of Job Performance Appraisals
As the manager of any team, one has many important roles to play and attend to. One important role is appraising the team’s individual performance. Job performance appraisals are important as they provide the manager with opportunity to provide a feedback on how well the employees are performing their delegated duties and a chance to motivate them. According to Buhler (2013), treating employees and co-workers equitably is not merely nice but the brain is wired to perform at the highest levels. Buhler further advises managers to schedule job appraisals and involve employees more to help the organization grow (Buhler & Worden, 2013).
The following are the reasons how and why job appraisals are important:
- Appraisals are an opportunity for the employees to understand how well they are progressing and what areas they need to improve on. It enables the manager to work with the employee and set new targets.
- It helps identify if employee priorities match manager’s expectations. Gives opportunity to both to work out the organization priorities.
- An effective manager is one who has a good and supportive relationship with employees. The performance appraisal is an opportunity for the two to meet and the employee to express their views to the manager.
- Performance appraisal enables the manager to document the progress of each member. This is very important during promotions or when dismissal arises (Hamlett, n.d.).
Performance appraisals are very important and useful both to the manager and the employee. Performance appraisals enable a closer working relationship between the manager and the employee. In the long-term, this enables improved relationships and morale within the team.
Time to Scrap Performance Appraisals?
There is a going trend among many organizations to completely get rid of performance appraisals. The reason for this is because they feel it forces managers to rate people and “weed out” employees who they feel are performing well. This is based on a philosophy that “we can’t totally trust managers” (Bersin, 2013) because they are forced to make these decisions which ultimately leaves someone at the bottom since onlya limited percent can be at the top. Other reasons for this trend of eliminating performance appraisals are employees want feedback more often, managers can’t judge an entire year of work at one time, problem employees should be handled at the time a problem happens and not the end of the year, forced ranking among an organization full of high performers damages the culture, and many other reasons.
Although many companies may want to eliminate this process they are leery of doing so because they still need to be able to have a process that handles fair compensation, records of low performance, employee performance tracking, and manager evaluations, which the performance appraisals currently handle. Some of the solutions to this issue are to “develop a feedback-rich culture” (Bersin, 2013), separating performance from future career plans discussions allows employees to create their own goals, and be aware of pay-for-performance plans.
Although the topic of eliminating performance appraisals has been discussed and debated many times, most companies are ready for a change. Businesses thrive on agility, speed, passion, and alignment. The process of driving and measuring performance has to do the same” (Bersin, 2013).
Four Easy Steps to Employee Appraisal Success
According to an article written by Victor Limpan titled “4 Steps to Painless (And Effective) Performance Evaluations” not only can employee appraisals (reviews) be accurate/effective, but they can also be painless for all parties involved. Here is what it takes to achieve a painless and effective employee appraisal.
According to Lipman, the first key to success is to “Establish clear, measurable, agreed-upon objectives” (Lipman, 2012). To make this possible, it is important to get the employee involved in the process; this way they will be able to chart their progress as the year goes on. If this is attained, there shouldn’t be any surprises in the review meeting.
The second step to a successful review according to Lipman can be found in “thorough documentation” (Lipman, 2012). To make the first step a success, you need to make sure that you have “a reliable record of the important stuff” (Lipman, 2012). Since so many things happen over the period of a year in the business world, if you don’t have proper documentation, it comes down to memory. If it is left to memory, it turns into a he said, she said conversation, and nothing will be accomplished. According to the employee they may be doing an outstanding job, but in your mind they are on the verge of getting fired.
The third step would be “Formal Mid-Year Evaluation” (Lipman, 2012). The mid-year review helps employees keep perspective of how they are performing, and what they need to improve upon before the end of the year.
Lastly it is important to hold “frequent meetings with meaningful feedback (no conflict avoidance!)” (Lipman, 2012). The key to any successful relationship is communication. If you are able to hold meaningful and helpful meetings that offer your employees needed and desired feedback, this will make your life easy as year-end reviews roll around. This helps keep the employees in check.
If you are able to follow these four easy steps throughout the year, by the time the year-end review come about, you will have everything that you need to deliver a “painless and effective performance evaluation” (Lipman, 2012).
This last recession has created many problems for the current labor market. Employers cannot pay employees top wages and stay cost-competitive. For employees, the metrics used for linking pay to performance are not always considered from a business-performance perspective. Measurement is the key of a performance-based pay system. Yet few organizations do measurement well enough to support a viable performance-based pay scheme. To help create a talented, engaged workforce an organization must balance the use of pay and other rewards with meaningful measures of individual performance. According to Human Resource Executive Online (2012), a properly managed pay-for-performance program should reflect:
- What fuels individual performance;
- What links individual performance and organizational performance; and
- How to effectively use performance goals to achieve short-term successes and long-term objectives while managing risk.
To strike the right balance, leaders need to understand the behaviors of each employee group responsible for creating or preserving organizational value and use that knowledge to develop reward programs that encourage those behaviors. By utilizing a balanced scorecard for performance measurements, a pay-for-performance strategy has a much greater chance of success (Phelps, 2001).
Performance pay systems are an underutilized management tool in call center workforce management. Call center management tends to make the mistake of relying on the cost of a call and productivity as measurements, which creates an inaccurate view of the call center employees’ impact on organizational value. Ideally, call value is composed of three parts — cost to complete a call, customer impact, and call quality; and must be measured in order to understand value (Phelps, 2001).
Call centers are most familiar with the cost to complete a call, but make the mistake of over-reliance on this measure. Lower costs are not always aligned with corporate value, especially if low costs are achieved by degrading service levels. Customer impact measures are composed of two parts – the revenue a call brings in and the revenue that customer is likely to produce in the future. Immediate revenue is measured by productivity and efficiency, while future revenue is measured by the level of customer loyalty. Without customer impact measures, call centers cannot accurately estimate or evaluate the value of an employee’s phone performance. Call quality is best measured by evaluating whether an employee is following the rules during a call. Focusing the quality measure on call process and representing the customer’s voice with customer impact measures reduces temptation to generalize incorrectly about individual employee performance.
A pay-for-performance plan will have a greater chance of success if a work environment is created that fosters exceptional performance. This can be accomplished by utilizing goals and accountability (Phelps, 2001). Employee and management performance targets must be in alignment. By paying each manager based on their team’s performance the manager is focused on supporting the performance of their employees. Managers also need to be held accountable for the quality of their employees’ work environment because workplace engagement is a leading indicator of job performance.
Choosing the right short-term and long-term goals without creating excessive risk for the organization presents the final challenge in the mission to balance the pay-for-performance equation (Yerre, 2012).
Armstrong, M. (2005, February). Job Evaluation: An Introduction. Retrieved from ACAS: http://www.acemyhw.com
Bersin, J. (2013, May 06). www. forbes.com. Retrieved from http://www.forbes.com/sites/joshbersin/2013/05/06/time-to-scrap-performance-appraisals/
Buhler, M. P. & Worden, J. D. (2013). Up, Down and Sideways: High-Impact Verbal Communication for HR Professionals. Retrieved from http://www.shrm.org/publications/hrmagazine/books/pages/emprel.aspx
Hamlett, C. (n.d.). Why Are Performance Evaluations Important? Chron, small businesses. Retrieved from http://smallbusiness.chron.com/performance-evaluations-important-1265.html
King, S. & Pye, B. (2007, January 20). Job Evaluation Good Practice Guide. Retrieved from Civilservice.gov: http://www.civilservice.gov.uk/wp-content/uploads/2011/09/JEGS2007_tem6-2421.pdf
Lipman, V. (2012, October 4). 4 Steps to Painless (And Effective) Performance Evaluations. Forbes. Retrieved from http://www.forbes.com/sites/victorlipman/2012/10/04/4-steps-to-painless-and-effective-performance-evaluations/
Phelps, Glen. (2001, May 28). Gallup Business Journal. Paying for Performance. Retrieved from http://businessjournal.gallup.com/content/283/paying-performance.aspx
U.S. Equal Employment Opportunity Commission.(2013, January 21). Facts about Equal Pay and Compensation Discrimination. Retrieved from http://www.eeoc.gov/eeoc/publications/fs-epa.cfm
Yerre, Brandon. (2012, January 3). Human Resource Executive Online. Effective Pay-for-Performance Strategies. Retrieved from http://www.hreonline.com/HRE/view/story.jhtml?id=533344245