Methods of Job Evaluation

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Job evaluation is the systematic process of assessing and determining the value of jobs performed within the organization and the relative value or worth of the employee's efforts. The four major methods of job evaluations are job ranking, job classification, factor comparison, and the point method.

There are four major methods of job evaluation.
There are four major methods of job evaluation. (Image: LuminaStock/iStock/Getty Images)

Job Ranking

The job ranking method is the simplest and easiest job evaluation method; jobs and the employees who perform those jobs are ranked from highest to lowest depending on their quality and value to the organization.

The job ranking method is the simplest and easiest evaluation method.
The job ranking method is the simplest and easiest evaluation method. (Image: shironosov/iStock/Getty Images)

Job Classification

The job classification method uses job classes or job groups to provide more customization in the evaluation. This method also uses scales to measure performance rather than comparing and ranking employees.

The job classification method uses job classes or job groups to further customize the evaluation.
The job classification method uses job classes or job groups to further customize the evaluation. (Image: Francesco Ridolfi/iStock/Getty Images)

Factor Comparison

The factor comparison method is more scientific and complex than any other method. Each job is ranked according to a specific set of factors, such as physical effort, mental effort, or responsibility, all of which have predetermined weights indicating their importance to success.

The factor compensation method is the most scientific and complex.
The factor compensation method is the most scientific and complex. (Image: Catherine Yeulet/iStock/Getty Images)

Point Method

The point method measures performance through scales and job factors rather than focusing on entire job functions and ranking employees against each other.

The point method ranks employees against one another.
The point method ranks employees against one another. (Image: tetmc/iStock/Getty Images)

Considerations

The point method is usually seen as the most reliable and valid evaluation method by employees compared to more subjective methods such as the job ranking method.

The point method is typically the most accurate.
The point method is typically the most accurate. (Image: Jacob Wackerhausen/iStock/Getty Images)

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