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Evaluating Jobs and Positions

Evaluation systems are common in large enterprises, which compare the responsibilities of roles to help in the definition of grades. Directly or indirectly, the evaluation can also contribute to setting compensation levels. The UK's Local Government Scheme and the Hay Evaluation System, used internationally, are examples of evaluation systems.

Evaluation systems normally use a set of formal and systematic procedures to perform a comparison of roles. As such, evaluation is primarily concerned with the definition of the relative status of a role, and not with a set of absolutes. The objective of all evaluation systems is to place a role in a grading or salary structure.

There are two main types of evaluation system:

Factor Key roles are examined factor by factor and a rank comparison order produced for each factor. A complex comparison of weighted factors then follows.
Points Rating A wider range of factors is used. Each factor is weighted and has a numerical scoring system. The total points scored determines the placement of the role in a grade or salary structure.
These systems might incorporate benchmarking, where a few key roles determine the rank of all the others. Grades and compensation levels are determined after the evaluation and ranking of the jobs.

See Also

Setting Up an Evaluation System

Entering Evaluation Information

Valid Grades

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