Job Evaluation

  1. 3 Describe the practice of job evaluation.

Compensation professionals use job evaluation to systematically recognize differences in the relative worth among a set of jobs and to establish pay differentials accordingly. Whereas job analysis is almost purely descriptive, job evaluation partly reflects the values and priorities that management places on various positions. Based on job content and the firm’s priorities, managers establish pay differentials for virtually all positions within the company.

Compensable Factors

Compensation professionals generally base job evaluations on compensable factors, which are the salient job characteristics by which companies establish relative pay rates. Most companies consider skill, effort, ...

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