Job evaluation is a key part of achieving pay equity for positions within the organisation. It can be described as a systematic process of establishing the relative value of different positions within the business. A key goal of the job evaluation process is to compare roles to each other to create a pay structure that is consistent, fair, equitable and transparent.
Conducting a job evaluation process within the business can uncover that some positions with lower level responsibilities are aligned at the same level of other positions that may even have leadership or more significant tasks. This creates inequity within the pay structure and it also becomes a deterrent for employees to want to ‘climb the ladder’ when there is no financial reward to do so.
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