Job ranking

Meaning & Definition

Job ranking is the process of ordering jobs within an organization using a comparative scale based on their level of significance, duties, skill levels, and value. The more important jobs are ranked higher than less important ones following their organizational level and significance. This technique helps in HR with employee grading and compensation planning.

Importance of Job Ranking

• Helps design fair remuneration packages and structures.
• Facilitates job evaluations and employee appraisals.
• Provides a basis for building a proper organizational structure.
• Helps HR professionals in workforce planning and recruitment.
• Helps distribute responsibilities equitably within an organization.

Legal Considerations

No particular statutory requirement is applicable for job rating in India. However, organizations must take care that job evaluation is conducted in a proper manner without any discrimination when designing their salary and grading structures.