What is the goal of job evaluation?

The goal of job evaluation is to create a systematic approach to measure the relative value of each job within an organization. This process assesses various factors, such as the skills required, responsibilities, complexity, and working conditions associated with different roles. By establishing a clear hierarchy of jobs based on their value to the organization, job evaluation aids in the development of a fair and equitable compensation system. This helps ensure that pay rates are aligned with the contributions of each job, which is crucial for maintaining equity and motivation among employees.

Other objectives, such as determining employee performance, enhancing job satisfaction, or promoting internal competition, are secondary impacts that could stem from a well-structured job evaluation system, but they do not represent the primary focus of the evaluation process itself. The central purpose lies in establishing a framework for understanding and quantifying job worth within the organization.