What is a job evaluation?

Many organizations use these strategies when they are just starting or planning to add additional positions.

The two main types of job evaluations are qualitative and quantitative. Here is a look at qualitative job evaluation methods:

• Job ranking. This method sees HR departments ranking each role in a hierarchical structure based on how difficult the roles are or on how much value the roles bring the company overall.

  Small companies utilize job ranking best; many can evaluate up to 100 jobs. It is also helpful in trimming unnecessary roles or combining positions.

• Job classification. The job classification method requires developing a grading system or another form of a categorizing system that helps HR organize the different roles. The structure of this method all depends on the needs of your particular business, but some common categories include items like:

  • Executives

  • Managers

  • Skilled workers

  • Technical workers

  • Semiskilled workers

  • Unskilled workers

  Once HR has determined the categories, it can sort each role accordingly.

  And here are some quantitative job evaluation methods:

  • Point factor. The point factor job evaluation method sees HR assigning each role several points and then ranking each role related to their point assessment. The number of points per role can depend on the criteria you wish, but common information includes:

    • Skills needed

    • Job responsibilities

    • Job title

    Once points have been assigned, you can form appropriate salary options for each role based on their point value.

• Factor comparison. The factor comparison job evaluation method combines the point factor and job ranking methods. HR first ranks each role based on certain factors and then assigns points to each role based on these factors.

  The total points for each role then dictate the job's ranking in the company's hierarchy.