Understanding job evaluation
Job evaluation looks at jobs, not the people doing them. It creates a systematic way to compare different roles and establish where they should sit in a pay structure. This ensures similar jobs are paid similarly and more demanding jobs are paid more.
What it measures
- Job requirements
- Responsibilities
- Complexity
- Working conditions
What it produces
- Job rankings/grades
- Pay structures
- Internal equity
- Career frameworks
Job evaluation factors
Common factors assessed during job evaluation:
Evaluation criteria
Job evaluation methods
- Ranking: Simple comparison of jobs against each other
- Classification: Matching jobs to pre-defined grade descriptions
- Point-factor: Assigning points to factors and totalling
- Market pricing: Using external salary data as primary guide
Pay equity considerations
Job evaluation should support pay equity - ensuring equal pay for work of equal value. Be careful that evaluation criteria don't inadvertently undervalue work traditionally done by particular groups. Review for bias.
Benefits of job evaluation
For the organisation
- Consistent pay decisions
- Pay equity compliance
- Clear career structures
- Budget planning support
For employees
- Fair pay structures
- Clear progression paths
- Transparent decision-making
- Role clarity
Common evaluation mistakes
Evaluating people not jobs
Job evaluation assesses the role's requirements, not how well the current incumbent performs. Conflating these leads to inconsistent results and pay inequity.
Outdated job information
Evaluating based on old job descriptions that don't reflect current responsibilities produces inaccurate results. Verify role details before evaluating.
Ignoring market rates
Internal equity matters but so does external competitiveness. A perfectly logical internal structure that's below market rates won't attract or retain talent.
Key takeaways
Job evaluation creates fair, consistent pay structures by systematically assessing job requirements and relative value. Focus on jobs not people, use clear criteria, and balance internal equity with external competitiveness.
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