Job Evaluation

Job classification (or evaluation) is an exercise which outlines the various job roles within an organisation. It serves as a baseline to determine the value of jobs and the hierarchy of jobs.

Classification systems are useful component to establish pay structures, which in turn are based on job levels (in turn, determined by reference to factors). The aim is to measure the relative value not of job holders, but of job positions. In other words, a difference in the individual work capacity of  the persons concerned or in the effectiveness of the work of a specific employee compared with that of a colleague will not justify differential pay for employees who perform work of equal value.

They are key to ensuring equal pay and help you satisfy gap-reporting obligations. However, they go beyond that. They also guide you to determine what vacancies to open, how to post openings, and how to review candidates. They also help in performance reviews and avoid overlaps between positions.

Job evaluation is a process that relies on various factors, some objective and some subjective. Employers must be ready to defend any subjective elements and show that their methods are fair, promote equal work for equal value, and prevent pay discrimination. To ensure a job classification system is non-discriminatory, it should consider criteria where workers of each gender may excel, as much as the job’s nature allows.

Evaluations should be carried out by a pool of competent people who understand the culture and objective of the business, know the nuances of the law on equal pay and discrimination, and who really know the merits of the requirements and nuances of the various roles.