An innovative job evaluation approach using the VIKOR algorithm

Fairness is a key issue that requires the attention of human resource management practitioners. Having a robust methodical procedure for identifying the value of job positions in an enterprise is essential. Consequently, there is a need for a job evaluation system that ensures fair compensation for each position. A poorly defined job evaluation system creates the dilemma of mismatches between employees and their competencies for their responsibilities and, accordingly, their wages. This results in employee dissatisfaction, which ultimately exacerbates attrition, which is costly because of the loss of talented employees. This paper proposes a VIKOR algorithm as an innovative approach to job evaluations. Engineering-related positions in an international aviation company were analyzed to illustrate the appropriateness of the proposed approach for managing the job evaluation dilemma. The results indicate that 29 job grades would be appropriate for this firm. In addition, the proposed algorithm was found to be superior to other multiple-criteria decision-making techniques at managing the job evaluation dilemma.