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Human Resource & Change Management Consultants New Zealand

Job Evaluation – To Use Or Not To Use?


Job evaluation is method of working out the value of individual jobs in an organisation. Job evaluation is a measure of the worth of the job and NOT the person doing the role. Organisations of around 50 or less generally do not need to use job evaluation as the value of different roles can be attained by local knowledge of the worth of these roles or by job match surveys. However if the organisation has a diverse number of roles and market pay rates are not readily available, then job evaluation becomes an option.

What Is Job Evaluation?

There are a number of job evaluation schemes and these can be summarised as either “analytical” or “non analytical”.

Analytical schemes break down the job into scheme categories and usually award points to each category. They assess some things as:

  • Knowledge
  • Decision making
  • Experience
  • People skills
  • Financial responsibility etc

Non analytical schemes are a simpler form of job evaluation and place jobs in order of a predetermined set of factors such as complexity, technical knowledge required etc. Once the largest and smallest roles have been established all of the other roles are put into a top to bottom list and often given grades such as grade A, B, C etc and this is done simply by dividing the list into groups.

Salary Surveys

All of the key tailor made suppliers of job evaluation systems will have a salary survey that will place like sized roles into the same category and collection of an individual organisations salary data for jobs evaluated will take place. The data will be categorised into a range of different options and sold back to the organisation. The larger the supplier’s database is, the more reliable the results will be.

When to use Job Evaluation?

There are many organisations who use job evaluation to determine the market worth of roles and to provide a consistent methodology for determining salary scales for both individual agreements and collective agreements and to provide a methodology that places some certainty into annual salary reviews.

For assistance in developing either non analytical or analytical schemes please contact: