Job evaluation
Job evaluation is of fundamental importance in reward management. It provides the
basis for achieving equitable pay and is essential as a means of dealing with equal
pay for work of equal value issues. In the 1980s and 1990s job evaluation fell into
disrepute because it was alleged to be bureaucratic, time-consuming and irrelevant in
a market economy where market rates dictate internal rates of pay and relativities.
However, as the e-reward 2003 survey of job evaluation showed, job evaluation is still
practised widely and, indeed, its use is extending, not least because of the pressures
to achieve equal pay.
In this chapter:
● job evaluation is defined;
● the different types of job evaluation schemes are described;
● information on the incidence of job evaluation is provided;
● the use of computers in job evaluation is discussed;
● the arguments for and against job evaluation are summarized;
● consideration is given to criteria for choice;
● the process of developing a point-factor scheme is described;
● conclusions are reached about using job evaluation effectively.
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