It is the complete operation of determining the value of an individual job in an organisation in relation to the other jobs in the same organisation.
Objectives of Job Evaluation
- To establish a basis for assessing jobs that is accepted by employees as fair;
- Ensure that judgements about jobs are more objective than subjective;
- Make judgements about content of jobs NOT contribution of job holders;
- Establish the relative position of jobs in a hierarchy;
- Measure the relative value of the organisation’s jobs – Internal equity and external competitiveness;
- Group jobs into an appropriate pay structure;
- Provide a continuing basis to value jobs that is easy to understand, administer and control;
- Provide consistency in staff training, development, promotions and transfers;
- Creates employee satisfaction.
When is job evaluation necessary?
- Whenever the number of positions in an organisation is so large that no one can reasonably know their relationships or relative worth;
- When jobs become increasingly complex;
- Due to rapid changes in the organisation, jobs need to be reviewed periodically.
Main Elements of Job Evaluation
- Job Analysis
- Job Description
- Selection of an evaluation system
- Job Rating (Scoring)
- Salary and Grading Structure
- Salary Survey for Benchmark Jobs