Job Evaluation

Job evaluation is the process of determining the relative worth of different jobs within an organization. It is used to establish fair and equitable compensation structures, to make decisions about promotions and transfers, and to design training and development programs. There are a number of different job evaluation methods, each with its own strengths and weaknesses. The most common methods include:

Point-factor method

The point-factor method is a quantitative method that assigns points to each job factor. The factors are typically related to the job's duties, responsibilities, and skills. The more points a job receives, the higher its worth. The point-factor method is relatively simple to administer and can be used to evaluate a wide range of jobs.

Classification method

The classification method is a qualitative method that compares jobs to a set of predefined classes. The classes are based on the job's duties, responsibilities, and skills. Jobs are assigned to the class that most closely matches their content. The classification method is relatively easy to administer, but it can be difficult to develop a set of classes that are fair and equitable.

Factor comparison method

The factor comparison method is a quantitative method that compares jobs to a set of key factors. The factors are typically related to the job's duties, responsibilities, and skills. The jobs are ranked on each factor, and the rankings are used to determine the job's worth. The factor comparison method is relatively complex to administer, but it can be used to evaluate a wide range of jobs.