What does "job evaluation" refer to?

Job evaluation refers to a systematic process that organizations use to determine the relative worth of different jobs within the organization. This process involves analyzing the responsibilities, skills, and requirements of each job and comparing them to others to establish a hierarchy or structure of job values. The goal is to ensure that employees are compensated equitably based on the complexity and demands of their roles, which can help in developing fair pay scales and eliminating wage disparities within the organization.

In contrast, assessing employee performance ratings focuses on evaluating individual employees’ productivity and contributions, while assessing the effectiveness of training programs measures how successfully those programs enhance employees' skills or performance. Techniques for interviewing candidates relate to selecting and evaluating individuals for specific jobs, not the valuation of jobs themselves. Therefore, the defining feature of job evaluation is its emphasis on comparing jobs to each other to establish their relative importance within the company.