Job Grading
A systematic process of evaluating and ranking jobs based on relative size or complexity.
Also: job evaluation
Definition
Job grading, also known as job evaluation, is a systematic process of assessing the relative size, scope, and complexity of roles within an organization to establish a rational hierarchy for compensation and career progression purposes. Common methodologies include the Hay/Mercer factor-point evaluation, which assesses jobs on dimensions such as knowledge, accountability, and problem-solving. Job grades provide the foundation for pay bands and career ladders.
Example
“After a major reorganization, the HR team re-graded all 150 roles using the Hay methodology to ensure that new job titles were assigned to the correct pay bands and compensation structures.”
Synonyms
- job evaluation
- role sizing
- job classification
- job ranking