A job evaluation is a systematic process typically performed by human resources to assess and evaluate tasks, responsibilities and the value of each job within an organization. Job evaluations are done by organizations to reassess jobs as the organization expands, to implement performance measures for each job, to attract qualified candidates and to retain valuable employees.
Best practices and processes have been developed for organizations to perform job evaluations, and most of these processes have similar basic elements.
Job content is assessed by documenting duties and responsibilities of the job. Also referred to as a job description, the content should include the overall function of the job, tasks required to complete the job and the relevance of the job tasks in regards to the overall goal of the organization. Job content should also include the skills, qualifications and education required to perform the job duties, which will help determine the job value.
After the job content is assessed, it allows the job evaluators to assess the value of the job. This is accomplished by using a defined system to rank each job's contribution to the organization and the degree of difficulty to fill the job. This element can include the job's value to the organization's revenue, and the skills required to complete the job, which can define the difficulty to fill the position.
After assessing the job value, it allows the evaluators to assess the contribution of the job to the organization. This is not a direct reflection on the employee performing the job but ranks the overall elements of the job to determine the level of organizational contribution. This element can assist in finding which jobs have become irrelevant, can be combined or have evolved to contribute more to the organization.
After all of the assessments, evaluators can determine compensation for each job within the organization based on all factors of the job evaluation. For organizations that have established this process previously and are re-evaluating jobs, it assists in reorganizing compensation plans and salary grids. It also allows the organization to re-assess recruiting and retention efforts, as well as align the organization's structure to better fit overall goals.