What is Job Evaluation?
A Job evaluation exercise is a systematic and scientific way of determining the value/worth of a job in relation to other jobs in an organisation. During the job evaluation process, criteria or “weightings’ are applied to each distinct job to assess their relative worth and to establish internal and external equity. Allied with a proper compensation survey, job evaluation provides input and informs a rational and optimum pay structure.
What are the advantages of Job Evaluation?
- Reduction in inequalities in salary structure – one of the key benefits of job evaluation is to ensure have external and internal consistency in salary structure thereby reducing irregularities and inconsistencies in pay. Overpaying someone to perform a particular job is an unnecessary cost while underpaying increases the risk of losing good talent
- Standardisation – The process of determining the salary ranges applicable to different jobs are standardised through job evaluation. This helps build in objectivity and uniformity into the salary structure.
- Definition and Documentation – a job evaluation process also encourages companies to define each distinct job as it currently exists in the organisation structure. Jobs evolve over time, especially if the organisation expands or goes through restructuring, job documentation must be kept up to date. The quality of a Job Evaluation exercise is directly related to the quality of the job documentation.
The Case for Job Evaluation
June 30th 2017
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