Job evaluation is a standardized approach to analyzing and evaluating jobs within an organization. It offers powerful solutions to developing effective compensation structures, easing benchmarking, and building career paths.
Many growing startups miss the opportunity to use grading and many established companies run on outdated systems. In this blog, I will discuss why grading is so helpful and present a new innovative tool for job grading, called gradar.
For companies not using any grading system at all, implementing one can be a major relief.
Compensation is a key driver to recruitment and retention and at the same time it is a major cost factor, directly impacting the bottom line. Getting compensation right is essential and benchmarking is key. Matching each job individually to benchmark positions can be a messy business. It is hard to make sure that each job is matched fairly and that the matching process leads to a balanced overall compensation structure.
By using gradar, companies can evaluate their positions, slot them into a job family, and let the system automatically provide job matches to all major benchmarking surveys. The grading results can be viewed in cross-comparison, which adds a validation process and improves its overall quality.
Traditional approaches to job evaluation have several disadvantages.
Traditional grading approaches are based on experts’ knowledge centered in big consultancies with high rates and high technology costs. Implementing grading using traditional approaches even within a middle-sized company is a substantial project – I know because I have worked in many of them. To reduce complexity, some companies choose to build their own job architecture with their own anchor positions. Those, however, are hard to keep current as companies evolve and some of the advantages of individual grading get lost.
Gradar makes job evaluation easier and more affordable. Companies implementing gradar often only use consultants to set up the system and lead the first grading sessions jointly and are then fully empowered to run the tool by themselves.
Gradar is a good fit for high-growth startups.
The developers of gradar critically reviewed all factors commonly used for job evaluation and extensively studied research in the field. The differences between the gradar system and comparable ones are especially relevant for high-growth companies. Many old systems are using the size of an organization, including revenue, number of employees, and diversity of the business, as a major indicator for job evaluations, all factors which are not appropriate for assessing jobs in high growth startups. Additionally, gradar is one of the few systems, which incorporates project management as a career path and includes high-level specialists in its metrics.
I have worked closely with the developers of gradar in the past and I am excited to support companies in the US and especially the Bay Area in implementing this powerful tool. Please find more information about the tool here.