Developing a More Relevant and Competitive approach for Valuing Knowledge Work

Abstract

This article introduces the concept of work valuation, a new method of placing value on work based on the market value of work, its strategic impact and the competencies associated with performing the work. This concept is needed because job evaluation practices have not kept pace with the radical transformation of work that is taking place. This omission is critical as employers migrate their pay structures from pay grades to pay bands. The theory of work valuation is presented, followed by work valuation guidelines and the steps to be taken in the work valuation process. The article concludes that work valuation must be established in organizations to monetarily differentiate work that is most related to organizational effectiveness.