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What is job evaluation?
Job evaluation is a process that enables the HR department to determine the relative value that each position contributes to the organization and establish an appropriate compensation level for the role. It aids in establishing fair salary levels, designing pay grades, setting initial salaries for new hires, and planning raises and bonuses. Its ultimate goal is to ensure pay equity within the organization.
📌 Keep in mind: Job evaluation focuses on the inherent value of the role, not the individual skills or performance of the employee.
There are various methods to conduct job evaluations. Below are some examples, summarized briefly:
Job evaluation provides numerous advantages that enhance organizational performance and competitiveness:
Legal compliance: Meets regulatory standards for pay equity and non-discrimination.