Job Evaluation and Assessment

Job Evaluation and Assessment- Job evaluation is a systematic way of assessing the worth of a job in relation to other jobs in an organization. It is thus a relative concept and uses the comparison of jobs within and across an organization to arrive at a job structure. Job evaluation fulfills an important role within the business in that it creates a ranking for all jobs within an organization enabling several people-related processes to be carried out in a transparent and just manner.

For example, ranking jobs according to their relative worth allows companies to build fair pay structures. This in turn provides employees with a good roadmap of the organization in terms of opportunities for training and advancement. A robust pay structure based on sound job evaluation techniques also helps to improve the recruitment process by attracting and retaining the right talent to the right job.

Methods of Job Evaluation

Similar to the processes of job analysis, job design and creation of job descriptions, job analysis is concerned more with the actual job than any particular individual associated with that job. It is therefore an objective rather than a subjective process. Job evaluation methods consist of two main categories – non-analytical and analytical methods.

Importance of Job Evaluation

The benefits to organizations from conducting job evaluations are:

They provide a systematic method for determining the relative with of jobs and try to create a clear link between pay and job requirements.
They provide an objective method for paying workers. This ensures that organizations are abiding by several principles of compensation management such as equal pay for equal work, equity in pay structures and objective performance management.
Compensation administration becomes easier because there is a system in place for identifying pay rates against job requirements.
New jobs can be easily integrated into the existing pay structures within an organization.

Job evaluation also minimizes wage discrimination based on caste, creed, gender, and ensures fair and equitable wages across the organization. Because Job Evaluation determines the worth of a job, not a person in the job it helps in maintaining harmonious relationships between management and the employees.

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