Definition
Job evaluation is a formal process for:
determining the relative value of various jobs within the organization, and
assigning jobs to a grade structure or some other hierarchical index of job value.
The term "work evaluation" often has the same meaning as "job evaluation," but also includes methods for valuing work that are not centered on job tasks. For example, work evaluation could be based on roles or competencies.
Purpose
Job evaluation helps organizations establish coherent relationships among positions. Common functions of job evaluation include:
identify "families" of occupations,
identify skills and competencies needed for successful performance,
evaluate "fit" between candidates and job requirements, and
develop career paths.
develop a grade structure and pay ranges,
define key responsibilities and skills to aid in conducting salary surveys, and
assign jobs to a grade structure.
determine whether different jobs have comparable requirements and responsibilities, and
ensure compliance with the Equal Pay
Method
using going market rates as the primary determinant of a job’s worth and pay.
ordering jobs based on their relative value to the organization.
determining the job’s relationship to a set of predetermined benchmark jobs.
comparing the job to others with similar entry requirements, duties, and responsibilities.
job evaluation
evaluating the job against a predetermined set of factors,
assigning a level or point value for each factor, and
translating the levels or points to a position in the job hierarchy.
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