Definition:
Job evaluation is the systematic process of determining the worth of one job in relation to that of the other jobs in a company, so that a fair and equitable wage and salary system can be established, as well as it forms the basis for various other Human Resources processes.
Objectives & attributes
- Indicates the relative 'size' or 'weight' of a job
- Jobs are ranked in terms of complexity
- Does not look at the volume of work assigned to a person but rather the demands, complexity, responsibility and competencies required
- Provides a basis for designing an equitable pay structure: internal and external equity
- The position is graded and NOT the person in the position i.e. do not look at personal attributes, merits and performance
- Observes grading rules, therefore eliminates potential subjectivity
Management objective:
Compensation is fair and equitable, Human Resources processes follow a structured and defensible sequence
