HR Glossary

Job Evaluation

What is Job Evaluation?

Job evaluation is a systematic process of assessing the value of jobs in an organization in order to determine the worth of individual jobs and the compensation to be paid to employees who hold those jobs. The purpose of job evaluation is to ensure that employees are paid fairly for the work they do. Job evaluation can be used to set pay grades for jobs, to determine the starting salary for a new employee, to award salary increases, and to determine the amount of a bonus.

There are a number of different methods that can be used to conduct a job evaluation. The most common method is the point-factor method, which assigns points to each of the factors that are used to evaluate a job, such as skill level, responsibility, and working conditions. Other methods that can be used include the job classification method, which assigns jobs to a specific class according to their level of responsibility and pay, and the job ranking method, which ranks jobs according to their importance to the organization.

How do you build a Job Evaluation system?

There is no one-size-fits-all answer to this question, as the best way to build a job evaluation system will vary depending on the specific organization and the specific jobs being evaluated. However, some key steps in creating a job evaluation system include:

  1. Establishing clear job criteria – It is important to have a clear understanding of the specific duties and responsibilities of each job in order to accurately evaluate them.
  2. Developing a rating scale – This rating scale can be based on a variety of factors, such as importance to the organization, difficulty, responsibility, and skills required.
  3. Assigning points to each rating – Once the rating scale has been developed, points can be assigned to each rating. This will help to create a standard by which all jobs can be evaluated.
  4. Evaluating each job – Once the rating scale has been established and points have been assigned, individual jobs can be evaluated using this scale.
  5. Updating the system as needed – The job evaluation system should be updated as needed to reflect changes in the organization and in the jobs being evaluated.

How do you put a Job Evaluation system in place?

The first step in putting a job evaluation system in place is to determine the criteria that will be used to evaluate the job. The most common criteria used to evaluate jobs are skill level, effort, responsibilities, and working conditions. Once the criteria have been determined, the next step is to develop a rating scale for each criterion. The rating scale can be a simple scale from 1 to 5, with 1 representing the lowest rating and 5 representing the highest rating.

The next step is to evaluate the job. The person who is responsible for evaluating the job should be familiar with the rating scale and the criteria that were used to develop it. The evaluator should also be familiar with the job duties and responsibilities. The evaluator should then rate the job based on the criteria that were used to develop the rating scale.

The final step is to compare the ratings that were given to the job with the ratings that were given to similar jobs. The goal is to ensure that the job is rated fairly and that it is comparable to other jobs in the organization.


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