Job evaluation is the process of determining the relative value of different jobs in an organization. The goal of job evaluation is to compare jobs with each other in order to create a pay structure that is fair, equitable, and consistent for everyone. The process involves assessing the job roles and remuneration packages within a company, and determining what the compensation for those roles should be. Job evaluation is usually done through a combination of internal assessment of the roles in the company and external market research. It involves looking at how much each role gets paid, what the pay is for related positions, and what benefits are appropriate for each role.

Job evaluation requires some basic job analysis to provide factual information about the jobs concerned. The starting point is often the job analysis and its resulting job description. Based on this, the job is evaluated. One of the key criteria in the evaluation is the added value of the job to the organization. Based on this evaluation, the job is added to the job structure. The resulting structure ensures pay transparency and equity between gender and minorities.

There are different methods of job evaluation, including the point factor method and the factor comparison method. Common job evaluation examples include single-position evaluations for newly created jobs, reevaluations of jobs to make salaries more competitive or equitable, and company-wide job evaluations used to restructure the entire compensation program.

Job evaluation is different from performance evaluation, which assesses the achievements of individuals in their positions. Regular job evaluations make employees feel valued and contribute to a strong company culture. Performing job evaluations can have benefits such as helping companies adjust to growth and ensuring pay transparency and equity.