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Back to Human Resources Definitions

What is Job evaluation

Job evaluations follow a formal framework to evaluate jobs. They are a way of comparing jobs to similar positions in the same industry or company. Job evaluations help to determine the pay for a role, ensuring that it is a fair amount for the work completed.
Using job evaluations can help companies to pay a competitive market rate for highly valued positions. They ensure that there is no disparity of pay, as people are paid what the role is worth. This can eliminate the issue of two people in the same position being paid entirely different amounts. Job evaluations provide a solid foundation for any pay structure system.

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