A job evaluation exercise assesses the relative worth of a job in relation to other jobs in the organisation. To make it simple: it compares the level of seniority of a job, with other jobs. Once this process is done, the job is ‘priced’ and is given a monetary value. Its aim is to bring equity amongst all job roles.
Companies conduct job evaluations to support a culture which encourages fairness and transparency. It is considered to be a reliable and objective method of evaluating jobs.
- An important aspect of this evaluation is that it focuses on the job and not the personality or performance of the person carrying out the role. This aims to remove any bias to the evaluation.
- The information collected through a job evaluation may help in recruitment processes. It provides a thorough understanding of what it takes to carry out the role, the required skills and the value it brings to the organisation; all being important factors when attracting and selecting candidates.
- Its result also aims to facilitate salary structures and eliminate bias and inequalities when giving salary increases or incentives.
- Top-down pressure to change the rating or ranking of a job can be very dangerous. However, if a company is supporting a fair and transparent culture, then this pressure will not be in the equation.
- It is a tedious process – one which is time-consuming and may require outside expertise, resulting in a high cost. The current changing nature of jobs leads to the periodical repeat of the exercise.
- This leads to it becoming ‘out won’ by the changes happening in the labour market. A labour market which is putting increased pressure on salaries due to the demand and supply of human resources.