Human Resource Glossary

HR Evaluation

Definition: A systematic process for determining the relative value or importance of different job roles within an organization, ensuring fair and equitable compensation structures.
Key Methods:
1. Ranking: Ordering jobs based on their perceived value or complexity.
2. Classification: Grouping jobs into predefined categories or levels.
3. Point-Factor System: Assigning point values to job responsibilities, skills, and working conditions.
4. Market Pricing: Comparing internal job roles to similar roles in the industry or labor market.
Steps to Conduct Job Evaluation:
1. Define objectives and establish evaluation criteria.
2. Gather detailed job descriptions and role-specific data.
3. Select and implement the most suitable evaluation method.
4. Analyze results and rank roles accordingly.
5. Communicate findings and integrate them into pay structures.
Benefits:
- Equitable Pay: Ensures employees are compensated fairly based on their responsibilities and contributions.
- Improved Transparency: Clarifies the rationale behind salary structures.
- Employee Satisfaction: Boosts morale and trust through perceived fairness.
- Legal Compliance: Helps mitigate risks of pay-related disputes or discrimination claims.