Why Job evaluation & Compensation Management matter

Job Evaluation and Compensation ManagementJob Evaluation and Compensation Management- Job evaluation is a method of comparing different jobs to ensure that all staff are graded fairly and equitably – when considering each job in relation to others in the organisation – and equally with other staff undertaking similar jobs or jobs of equal value.

Why is Job Evaluation Important?
Job evaluation and Compensation Management assists an organisation in the following ways:

  • Promotes transparency around pay decisions
  • Allows for a fair system of remuneration
  • Enables the gauging of external competitiveness
  • Supports the notion of equal pay (Equal Pay for Work of Equal Value)
  • Supports recruitment, career development and succession planning
  • It is very important to note that only the job is evaluated, not the person doing the job.

Advantages of Job Evaluation
Some of the attributes of an effective job evaluation methodology include:

  • Principles are not complex and are usually easily understood
  • All roles within a business are evaluated using the same methodology
  • It evaluates specialist roles as effectively as non-specialist roles
  • It is flexi.