Job evaluation and remuneration strategies : How to set up and run an effective system

Job evaluation and remuneration are two core aspects of the vast area of personnel management. Job evaluation is defined here as the process of examining, describing and evaluating the content of the function and ranking of related functions. Remuneration is the process which takes place after functions have been ranked and through which a salary structure will be established. The final work on remuneration and pay is definitely not yet written or spoken. We all nurture our own beliefs and opinions, because the subject has direct personal consequences for each of us. Remuneration is an important basic ingredient of our existence as it is an essential element of our working life and governs the very existence of our organisations. By far the greatest part of the remuneration people receive is based on job-specific pay with the weight of the job as one of the deciding factors. A systematic framework is required to manage differences in pay in such a way that they support the objectives of the organisations and result in a fair remuneration for the individuals. A host of such systems currently available, but their workings, possibilities and limitations are unclear to many. An interesting trend is that "employability", "potential" and "competencies" play an increasingly important role as a basis for remuneration. The value of the job attached to it on the basis of its weight is increased by a reward for the broader employability of the employee in multiple jobs.