The aim of job evaluation is to provide a systematic and consistent approach to defining the relative worth of jobs within a workplace, single site or multiple site organisation. It is a process whereby jobs are placed in a rank order according to overall demands placed upon the job holder.
It therefore provides a basis for a fair and orderly grading structure.
Job evaluation does not determine actual pay. That is a separate operation.
Only the job is evaluated, not the person doing it. It is a technique of job analysis, assessment and comparison and it is concerned with the demands of the job, such as the experience and the responsibility required to carry out the job. It is not concerned with the total volume of work, the number of people required to do it, the scheduling of work, or the ability of the job holder.
Job evaluation is often used when
- determining pay and grading structures
- ensuring a fair and equal pay system
- deciding on benefits provision - e.g. bonuses and cars
- comparing rates against the external market
- undergoing organisational development in times of change
- undertaking career management and succession planning
- reviewing all jobs post-large-scale change, especially if roles have also changed.