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Compensation

Job Evaluation

A systematic process for determining the relative worth of jobs within an organization.

Full Definition

Job evaluation is a structured process for determining the relative value or size of jobs within an organization, independent of the current job holder. Job evaluation results are used to create a fair and equitable pay structure, establish pay grades, and ensure equal pay for work of equal value. Common job evaluation methods include points factor rating, job ranking, job classification, and factor comparison.

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