Job Evaluation

"Job evaluation" is a systematic process of determining the relative value or worth of different jobs within an organization. The goal of job evaluation is to create a fair and equitable pay structure by comparing the requirements, responsibilities, and complexities of various jobs. It involves analyzing job duties, skills, effort, and working conditions to determine the appropriate compensation level for each role. Job evaluation is distinct from performance evaluation, which assesses an individual employee's achievements. Job evaluation focuses on the role itself, not the person in the role. Regular job evaluations can have benefits like improving employee retention, closing gender pay gaps, and creating a positive company culture. Organizations typically conduct job evaluations every few years, or when there are significant changes to the business.