Evaluating the worth of a job
Step 1 / 4·Three methods and when to use which
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Learning objectives — after this module you will:
- Choose a method that fits the size of the organisation
- Understand the factors used in point-factor scoring
- Run an evaluation panel and handle disagreement
Three methods and when to use which
Don't use a more complex method than you need.
Job evaluation answers one question: relative to each other, what are the organisation's roles worth? It's the foundation of internal fairness — something employees sense very clearly even when no pay structure is published.
Three common methods
| Method | How it works | Fits when |
|---|---|---|
| Ranking | Order every role from highest to lowest worth on overall judgement | Small organisations, under 20–30 roles; fast but hard to explain and easily disputed |
| Classification | Define grades with characteristic descriptions, then slot each role into a grade | Mid-sized organisations wanting something easy to understand; the line between adjacent grades is still contested |
| Point-factor | Choose factors, assign weights and scales, score each role and total the points | Organisations with many roles that need to explain why A ranks above B — the most widely used method today |
The real strength of point-factor
Not that it's more accurate — that it's EXPLAINABLE. When a department head asks 'why is my role graded below theirs', you have a factor-by-factor score sheet to look at together instead of defending a judgement call. That's also why professional pay systems use it most.
Key takeaway: Three methods: ranking, classification, point-factor — point-factor dominates because it's explainable.