Job evaluation

 

For determining compensation for diverse jobs, internal equity and consistency among different job holders are crucial. Job evaluation aims to accomplish this equity and consistency by evaluating the relative worth of various positions within a company. The process of determining the relative value of distinct job categories by assessing their duties and, as a result, determining their remuneration is known as job evaluation. As a result, job evaluation is the process of identifying and quantifying employment worth. It is the process of systematically rating and comparing jobs based on organizationally specified criteria of job worth, such as effort, responsibility, complexity, importance, skills, and working circumstances. A tool for comparing jobs and classifying them into acceptable wage ranges is job evaluation.

Job Evaluation Definition

The process of determining how much compensation to allot to a job is called “a job evaluation.” Internal and external facts are used to decide what a certain position’s remuneration range should be, as well as what related positions should be paid  and what perks are appropriate for a given job (Wiebusch, 2021).

Single-position assessments for newly established jobs, reevaluations of occupations to make salaries more competitive or equitable, and company-wide job evaluations to restructure the entire compensation program are all examples of common job evaluations.

Procedures for Job evaluation


  • With management’s agreement, HR takes the lead in this endeavor.
  •  Prepare the job description by analyzing it.
  •  Choose and design a plan for job evaluation.
  • Sort jobs into categories.
  • Install the application and share it.
  • Maintain and improve the program.

Job Evaluation Methods

Organizations use a variety of non-analytical and analytical job evaluation approaches to determine the value of a group of jobs.



The benefits of job evaluation

  Salary structure inequities and reduced.  

        Specialization.

        Assists in the hiring of staff.

        Employees and management enjoy an excellent working relationship.

        Standardization.

        The importance of new jobs.


Limitations of Job evaluation

   Less scientific

        Difficult to understand

        Factors are not exhaustive

        Fluctuations

        Creates dispute


Conclusion

Finally, job evaluation enables an employer to go beyond job grading in order to pay each employee the salary and benefits that he or she is entitled to. Human resource management is incomplete without job evaluation. Any company’s lifeblood is human resources, yet job evaluation determines the value and worth of each employee’s position.

 

References

 2021. Job Evaluation Methods. [Online]
Available at: http://www.businessjargons.com

Vijay & Rakesh, 2016. Job Evaluation. [Online]
Available at: http://www.slideshare.net

Wiebusch, N., 2021. Job Evaluation. [Online]
Available at: https://www.eddy.com

 


Comments

  1. Vindya PereraDecember 12, 2021 at 6:12 AM

    Good article. Job evaluation is a vital function of HRM as it helps in deciding the compensation structure in the organization.

    ReplyDelete
  2. SampathpcDecember 13, 2021 at 9:46 AM

    A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Good article to read.

    ReplyDelete
  3. NadukaDecember 14, 2021 at 6:17 AM

    job evaluation tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. It has more benifits for organization

    ReplyDelete

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