1. Create a Job Worth Hierarchy Based on Internal Worth
Select a best-fit job evaluation method to effectively assess the relative worth of positions in the organization.
McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © McLean & Company. McLean & Company is a division of Info-Tech Research Group.
SAMPLE
Learn about becoming a member

2. EXECUTIVE SUMMARY Walk away from this blueprint with: SAMPLE Situation
Balancing the need to attract and retain talent against the desire for labor cost control is a problem faced by all organizations, large and small.
Despite this, job evaluation has fallen out of favor in many organizations due to the perception that it is too complex and time consuming to produce a return on investment (ROI).
Resolution
Organizations need to find the right balance between internal and external equity in order to allocate scarce labor dollars effectively.
To accomplish this, organizations must first determine their internal job worth hierarchy via job evaluation.
This blueprint will help you bring job evaluation and job worth hierarchies into the 21st century: reduce the bureaucratic burden, ensure strategic alignment, and increase flexibility.
Complication
Many organizations have moved to a compensation-setting model that relies exclusively on market pricing – showing unjustified confidence in its reliability and an overreliance on external equity.
An understating that an internal equity analysis helps organizations determine the relative value of jobs and pay accordingly.
A best-fit method of job evaluation (ranking, classification, or point factor) that aligns with your organization’s characteristics and operating environment.
A job worth hierarchy with target communication transparency identified and a flexible maintenance process.
SAMPLE

3. GUIDED IMPLEMENTATION
MCLEAN & COMPANY OFFERS VARIOUS LEVELS OF SUPPORT TO BEST SUIT YOUR NEEDS
CONSULTING
“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”
GUIDED IMPLEMENTATION
“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”
DIY
TOOLKIT
“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”
WORKSHOP
“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”
Diagnostics and consistent frameworks used throughout all four options
SAMPLE

4. Use McLean & Company’s three-step process to create your job worth hierarchy
Prepare for Job Evaluation 1
Perform Job Evaluation 2
Communicate and Maintain Job Evaluation 3
SAMPLE

5. SAMPLE SLIDES
SAMPLE

6. Pay satisfaction has a positive effect on engagement and organizational commitment
Pay satisfaction has a dramatic, positive effect on employee engagement.
Pay satisfaction is also highly correlated with organizational commitment.
Compensation Satisfaction
Commitment to the Organization
High
Low
Satisfaction with Compensation
Source: McLean & Company Engagement Survey, 2015; N=26,516 “
… Low pay satisfaction leads to less engagement and more absenteeism, and increases the chances of the employee quitting.
Source: Werner and Werner ”
SAMPLE

7. Internal equity is both more apparent and more important to employees than external equity
Employees confidently assess internal equity because they often know what others make.
External equity is trickier to assess due to a lack of familiarity and scant job information.
Employees naturally compare themselves to internal peers – both those in the same role and those in roles they perceive to be similar.
If an employee knows or believes they are being paid less than others in comparable jobs, they feel less valued, and their engagement and commitment often diminish.
Employees are more informed about their relative salary than ever before, as Gen X and Millennial employees readily share personal compensation details with one another.
Employees often find it difficult to confidently assess external equity for two key reasons:
Employees are less familiar with outside organizations and the jobs within them, so they aren’t as quick to draw comparisons. They aren’t confident making comparisons within a role and they are even less confident making comparisons with other potential comparator jobs outside their job family.
Employees can refer to internet-based salary sources, but the information provided is sparse and generally does not include detailed job information that would enable a like-to-like comparison.
Internal equity has a greater impact on self-worth than labor market disparity.
Employees are more emotionally affected by learning they are paid less than their coworkers than by learning another company pays their staff at a higher percentile.
Why? It speaks to the fairness of the organization and signals how it values each employee – accurate or not.
A recent study found that individual equity (perceived fairness of an employee’s pay as compared with others in their company with the same job) has the strongest effect on pay satisfaction.
Source: Till and Karren as cited in Werner and Werner
SAMPLE

8. Modernize job evaluation and job worth hierarchies through strategic alignment
Use either a qualitative or quantitative job evaluation method – depending on your timeline and budget.
Job Evaluation
This blueprint will help you bring job evaluation and job worth hierarchies into the 21st century: reduce the bureaucratic burden, ensure strategic alignment, and increase flexibility.
Qualitative Methods
Quantitative Methods
Ranking
Classification
Point Factor
SAMPLE

9. MCLEAN & COMPANY HELPS HR PROFESSIONALS TO:
Now, more than ever,
HR leaders need to help their organizations maximize the value of their people.
McLean & Company offers the tools, diagnostics, and programs to drive measurable results.
– Jennifer Rozon,
Vice President,
McLean & Company “
Empower management to apply HR best practices
Develop effective talent acquisition & retention strategies
Build a high performance culture
Maintain a progressive set of
HR policies & procedures
Demonstrate the business impact of HR
Stay abreast of HR trends & technologies 
Sign up to have access to our extensive selection of practical solutions for your HR challenges
LEARN ABOUT BECOMING A MEMBER
Toll Free:
hr.mcleanco.com
SAMPLE