Methods of Job Evaluation

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Job evaluation is the heart of the process by which managers determine how much they will pay one employee compared to another.

Pay is a source of justice (or mostly injustice) within a firm. Staff evaluate their effort/reward ratio and compare it with the perceived effort/reward of their colleagues. Feelings of injustice and lack of fairness arise where one employee perceives that one person's effort/reward is not in line with their own.

This AV presentation sets the requirements for equity, fairness and consistency when paying staff in a firm. It describes five methods of job evaluation to achieve these requirements from the simplest Job Ranking through to the more complex Point Factor Analysis where jobs are described by factors and points awarded to each.