HR Glossary

Job evaluation

Job evaluation refers to a company’s systematic process of job comparison (one job with the other jobs).

What-is-job-evaluation

Job evaluation definition

Job evaluation refers to a company’s systematic process of job comparison (one job with the other jobs). The main goal of job evaluation is assessing and establishing fair compensation.

Importance of job evaluation

• It helps in producing a fair pay framework

• Reduces inefficiencies in remuneration

• Compares remuneration with other companies

• Designs new jobs, departments and functions

• Reworks company’s pay framework after a re-organization

The biggest disadvantage of job evaluation is the fact it is conducted from the employer’s point of view.

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