Evaluation Tools as the Foundation of Job-Based Pay System... Disclosure in Construction and Shipbuilding Industries

Ministry of Employment Releases 3 Types of Job Evaluation Tools by Industry
Encouraging Expansion of Private Sector Job-Based Pay System

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has released job evaluation tools that can be referenced for operating personnel and wage systems based on job competency in the construction and shipbuilding industries. With this, evaluation tools for 11 industries have been made public so far.

The Ministry of Employment and Labor disclosed three related materials, including job evaluation tools for the construction and shipbuilding industries, on the 26th of last month.

The job-based wage system is a system that pays different wages according to the nature, difficulty, and level of responsibility of the work.

It is mostly introduced and operated in advanced countries and global companies and is regarded as the most consistent with the principle of "equal pay for equal work."

On the other hand, in Korea, the seniority-based wage system, which pays wages according to years of service, is firmly established, making it difficult for the job-based wage system to spread in the private sector.

To introduce a job-based wage system, a job evaluation process that assigns relative value to jobs must precede.

The materials published by the Ministry of Employment and Labor this time include ▲ job evaluation tools by industry for construction and shipbuilding ▲ a manual for using job evaluation tools by industry for banking and steel industries ▲ and a casebook for using job evaluation tools by industry.

The Ministry of Employment and Labor has been developing and distributing job evaluation tools by industry since 2015. With this announcement, the number of industries with job evaluation tools has increased to 11.

Until last year, job evaluation tools were developed for nine industries including healthcare, banking, hotels, steel, public sector, social welfare services, information technology (IT), pharmaceuticals, and general manufacturing.

This year, the Ministry has also allocated a budget of 400 million won to provide consulting for companies in these industries that wish to introduce job-based wages.

The announced materials include a manual for using job evaluation tools for the banking and steel industries to help companies understand the tools.

They incorporate basic research by academic experts and opinions from professional counselors and company officials.

Cases where job evaluation tools can be applied in the respective industries are explained in three stages: pre-job evaluation, job evaluation, and job evaluation utilization stages.

The government has previously announced manuals for using job evaluation tools for six industries including healthcare, hotels, public services, social welfare services, information technology (IT), and pharmaceuticals.

The casebook for using job evaluation tools by industry contains cases from 11 companies across six industries, including manufacturing, where existing job evaluation tools have been prepared.

Specifically, it presents methods for each job evaluation stage such as ▲ job classification system and selection of standard jobs ▲ setting job evaluation methodology ▲ selecting job evaluation factors ▲ determining weights of job evaluation factors ▲ conducting job evaluation ▲ calculating job values and determining job grades.

Ryu Kyung-hee, Director of Labor-Management Cooperation Policy at the Ministry of Employment and Labor, said, "We hope that the materials published this time will lead to the autonomous introduction and activation of job-centered personnel management by labor and management."

The materials can be found on the government's wage and job portal site, the "Wage and Job Information System."