Job evaluation is the systematic process of assessing and determining the relative value or worth of jobs within an organization to establish equitable and internally consistent pay structures, compensation levels, and job classifications. Job evaluation provides a framework for comparing jobs based on factors such as job content, responsibilities, skills, qualifications, and working conditions to ensure fair and competitive compensation practices.
The purpose of job evaluation is to establish a rational and defensible basis for determining the relative worth of different jobs within the organization, regardless of individual job incumbents or external market factors. Job evaluation aims to eliminate biases, inconsistencies, and disparities in pay by providing a systematic and objective method for assessing job value and establishing pay differentials based on job-related factors.
You may also be interested in learning about these terms:
Job Evaluation
Job Rotation
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