Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. A comprehensive analysis of each position’s tasks, responsibilities, knowledge, and skill requirements is used to assess the value to the employer of the job’s content and provide an internal ranking of the jobs. It is important to remember that job evaluation is a measurement of the internal relativity of the position and not the incumbent in the position. This analysis can also contribute to effective job design by establishing the organizational context and value of the job, and to hiring and promotion processes by providing job analysis on skill and competencies required to successfully meet job requirements.
Establishing a job evaluation policy and procedure is not a legal requirement, although job evaluation is an effective tool organizations use in meeting requirements of pay equity legislation. Furthermore, provincial human rights codes require employers to treat employees equitably and fairly, without discrimination. A comprehensive job evaluation policy and process can both ensure, and demonstrate, objective and fair decision-making regarding compensation structures, staffing and promotion. Organizations may choose to set up a job evaluation committee to support the process. The job evaluation policy should outline:
• The purpose of the policy
• The objectives of the policy
• Roles and responsibilities for implementing the policy
• A step-by-step list of procedures for the evaluation process
• An appeal process for employees to follow
For more information on job evaluation visit our compensation & benefits section.