What Is the Purpose of a Job Evaluation

Job evaluation is a process of determining the value or importance of ajob, relative to other jobs in an organization. You may be wondering what is the purpose of a job evaluation. The purpose of job evaluation is to acquire a systematic ranking of jobs, which enables to frame a rational and acceptable pay structure. Job evaluation process may consist of some of the following important features:

  • Job evaluation is about assessment of jobs and not people.
  • Job evaluation standards that are followed are relative, but not absolute.
  • The necessary information is obtained from job analysis to make job evaluations.
  • Job evaluations are generally carried out by a group or a team and not by the individuals.
  • Job evaluation tries to incorporate some degree of subjectivity.
  • It does not fix a pay structure, but only provides a ground for evaluating a reasonable wage structure.
  • Ranking jobs using job evaluation technique helps in determining the suitable compensation to offer.

Job evaluation procedure includes a thorough research of all the positions, according to specific set of factors such as education, skill, experience, abilities in problem-solving, decision-making, physical requirement and complexity involved. Sometimes job evaluation reclassification is required to be conducted, when requirements change in a certain position, regarding the tasks or responsibilities, as a result of expansion or downsizing.

Although this process has a presence of subjective element, it works well and the organizations obtain a good degree of accordance for majority of jobs. An essential characteristic of this subjectivity is that, how exactly a specific organization values a job.
With the help of this systematic process to determine the pay grade for different jobs, it is possible to take the subjectivity out of compensation decisions and improve the compliance of employee.

Many benefits of job evaluation process include:

  • Job evaluation process tries to relate the pay grade with the requirement of the job.
  • Jobs are ranked based on the criteria such as experience, responsibilities, knowledge, hazards, etc., and the pay scale is evaluated accordingly.
  • A reasonable and a just wage structure is the outcome of job evaluation. This process removes salary inequities, by placing similar requirement oriented jobs in the same salary range.
  • When rate grades are being determined for different jobs, the employees as well as unions take part as members of job evaluation committee. In this manner, wage related issues can be solved quickly.
  • When job evaluation is conducted in a proper and careful manner, it results in the assessment of new jobs.

Category: Job Evaluation

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