job evaluation

Job evaluation is a systematic process used to assess the value of a job within an organization. It involves appraising job characteristics, such as required effort, experience, and responsibility, to determine a job's relative standing in a hierarchy and to set appropriate wage rates.1

This process is crucial in labor economics for establishing a fair and consistent internal pay structure. Methods can include ranking jobs based on employee perceptions or using analytic approaches that score job requirements against distinct criteria. Job evaluation is often a collaborative effort, aiming to create a pay structure that is acceptable to the workforce and to manage changes in that structure through negotiation.2