Job evaluation sets the worth of jobs, not people, using four main methods: ranking, classification, factor comparison and point factor. The first two compare whole jobs, while the last two are analytical and measure jobs against set factors such as skill, responsibility, effort and working conditions.
Step by step
- 1
Ranking
Ordering whole jobs from highest to lowest value, or comparing them two at a time. Quick and suited to a small company, but it does not show how big the gap is between one job and the next.
- 2
Classification
Setting grades in advance, each with a general description, then slotting each job into the grade whose description it matches. It suits structures where jobs are similar and grades are stable.
- 3
Factor comparison
Choosing benchmark jobs and splitting their pay across factors such as skill, responsibility, effort and working conditions, then comparing other jobs with them factor by factor. Precise, but hard to explain and update.
- 4
Point factor
Defining factors, weights and levels for each factor, giving each job points, then converting the point totals into grades. It suits building a salary scale because it is documented, repeatable and open to review.
- 5
Choose the method
Ranking or classification for a small company with few jobs, and point factor when jobs and departments multiply and you need decisions you can defend.
- 6
From evaluation to a scale
Group jobs of similar weight into one grade, then compare each grade with market pay to set the salary range.
Evaluating a job by the person who holds it or their current salary reproduces existing unfairness instead of fixing it. Evaluate the job as its job description defines it.
- point factor job evaluation
- job evaluation methods explained