Comparison of Job Evaluation Methods: Implications for the Salaries Design in Publishing Company

- Job evaluation is an crucial factor in compensation design because it relates to issues of equity and worker satisfaction. Case study at the Human Resources Department of a publishing company show that there is a problem with the compensation system that is felt to be unfair. The existing method used in the company was job classification without considering workload. Therefore, it is important to determine the job relative value as a reference for designing compensation. This study compared two job evaluation approach using point system method: (1) an adjusted factors and weight; (2) standardized factors and weight using Cullen Egan Dell. Finding in this study shows that different approach in conducting the job evaluation results different number of job clusters. It will affect the proposed compensation design, which from the first approach (1) requires an increase in compensation budget of 4.9% from the existing budget, while second approach (2) requires a higher budget allocation of 11.6%. Based on the results of the comparison, company can choose alternatives that align with availability of budget, business strategies and compensation strategies to retain employees or recruit potential prospective employees.