What is a Job Evaluation?

A job evaluation is a process that takes the information gathered by the job analysis and places a value on the job. It is the process of systematically determining the relative worth of jobs based on a judgment of each job’s value to the organization. The most commonly used method of job evaluation in the United States and Europe is the “point method.” The point method consists of three steps:

=>> defining a set of compensable factors;
=>> creating a numerical scale for each compensable factor; and
=>> weighting each compensable factor.

Each job’s relative value is determined by the total points assigned to it. The result of the job analysis and job evaluation processes will be a pay structure or queue in which jobs are ordered by their value to the organization.

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