How to recognize, avoid errors in the job evaluation rating process

By Christopher Banks
|Canadian HR Reporter|Last Updated: 02/26/2003

Whether to determine pay or to set goals through performance management, job evaluations are the foundation for decision-making. Unfortunately, the process has potential for errors.

Job evaluation deals with the assessment of the level and type of skills, knowledge, responsibilities and working conditions necessary for an individual to carry out the duties of a position. It’s the formal analysis of positions within an organization and the subsequent relating of each position to others in a systematic way.

Although there are many methods of job evaluation, such as ranking, job classification and the point method, the most common approach is the factor comparison method. With this method, a number of compensable factors are identified, such as education or problem-solving; each job is then rated according to how much of that compensable factor is required.