Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It ensures a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational paystructure.
- It links pay with the requirements of the job.
- It offers a systematic procedure for determining the relative worth of jobs. Jobs are ranked on the basis of rational criteria such as skill, education, experience, responsibilities, etc… and are priced accordingly .
- An equitable wage structure is a natural outcome of job evaluation.
- An unbiased job evaluation tends to eliminate salary inequities by placing jobs having similar requirements in the same salary range.
- When conducted, helps in the evaluation of new jobs.
- It points out possibilities of more appropriate use of the labor force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.