Job Evaluation 

Meaning & Definition

Job evaluation can be understood as a scientific way of assessing the intrinsic value of a job through comparison with other jobs, considering factors such as job duties, job responsibility, skill requirements, and job environment. Job evaluation does not refer to the assessment of the individual performing the job but rather the job itself. This process directly influences the remuneration system that an organisation adopts in terms of grades and salary bands. In India, job evaluation plays an important role in HR activities.

Importance of Job Evaluation

• Creates a level playing field for salaries.
• Minimises salary issues and inequality among employees.
• Assists in comparing employee salaries to market standards for HR.
• Allows employees to have a career path based on promotion policies.
• Provides pay equity within the organization.

Legal Compliance & Requirements

There is no particular statutory requirement for compliance in relation to job evaluation. However:

• Under the Equal Remuneration Act, 1976, this act mandates that there should be equal payment for jobs of equal value, irrespective of the gender of the person undertaking the job.