What does job evaluation determine?

Job evaluation is a systematic process used to assess the relative worth of jobs within an organization. The primary aim is to establish a fair and equitable pay structure by analyzing the responsibilities, skills, qualifications, and value of each position relative to others in the organization. This process helps ensure that employees are compensated fairly based on the intrinsic value of their job rather than on external factors.

By establishing the relative worth of each job, organizations can create consistent pay levels, define job hierarchies, and improve internal equity among positions. This is vital for creating a motivated workforce, as it helps employees understand how their job fits into the broader context of the organization and its compensation framework.