Job evaluation refers to the process of formally and systematically determining the relative value or worth of positions within a company or organization. The current job descriptions are used as the main basis for job evaluations.
The Importance Of Having The Correct Job Evaluation Tools And Strategies In A Company
• It will serve as the basis for determining the appropriate salary rate for a job title or position. Without a carefully crafted and carried out job evaluation method, you could be allocating erroneous and unfair pay rates to different job positions.
• Job evaluations can establish internal contingencies since it can help create broader job descriptions that can effortlessly adjust to the fast changing needs of a business or company.
• It can help you greatly in preventing job redundancies in the company. Through this process, you can determine the number of people really required within the firm, a department or area. Job evaluation can also help you determine whether an area or department may have two or more employees that are unnecessarily doing the same job.
With the many benefits your business can stand to gain from having a good job evaluation method and strategy, it is important to have one in place in your company as soon as possible. If your HR team is not quite capable of creating and carrying out one, you can always get help from professional and highly experienced reward management consultants.