What Is a Job Evaluation?

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Many companies will evaluate a job for many purposes. When a company decides to create a new position, it will perform an evaluation to see if the new job will bring any value or worth to an organization. Sometimes an organization will review each job within an organization to see if the compensation is justified for the duties and responsibilities performed. There are a number of different types of job evaluations that can be performed, including ranking, classification, point evaluation, factor comparison and market comparison.

Job Description

A job evaluation is used many times to determine or clarify a job description. Everyone working within an organization needs to know exactly what their responsibilities and duties are. After an evaluation has been completed, certain duties and functions can be added or omitted from a job description so that employees can focus on the job at hand. Focusing allows employees to streamline their activities and function more efficiently and effectively. This eliminates the ambiguity of a job.

Compensation

Everyone within an organization is looking to receive equitable pay for contributions made to the organization. A job evaluation is a method of deciding what compensation should be awarded a particular job in relation to other jobs within a company. The objective is to also make the pay scale competitive with those of other companies within the same industry. Sometimes market research and analysis is needed to gain a complete understanding of what’s fair throughout the industry.

Training Requirements

Jobs are evaluated based on the training and education needed to perform the duties and responsibilities. Perhaps one-on-one training is needed or maybe workshops are required for a person slated to perform a particular job. Education is another factor to look at. A particular job may require a degree or maybe an advanced degree is needed. This information is particularly useful when the human resource department gets ready to place an advertisement in the local newspaper to fill a vacant position.

Departmental Interaction

A job evaluation will also take into consideration the interaction that an individual has with other departments throughout the organization. To interact with other departments, someone will need to have oral and written communication skills that are above the status quo. An understanding of other departments will also be necessary. Job evaluations help assess the needs, skills and qualifications for all positions within an organization.

Supervision/Decision Making

Managerial and supervisory positions need to have job evaluations completed as well. These evaluations help to determine the scope of supervisory responsibility as well as the decision-making authority for a particular job. Supervisors needs to know who they will supervise. They also need to know what the level of decision-making authority is. Sometimes this can be a monetary limit and other times it can be an accounting function or activity with a dollar amount assigned to it.

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